# Capela Nova municipal financial and political instability > Live situation record from CLSTR: https://clstr.news/situations/capela-nova-municipal-financial-and-political-instability > Updated: 2026-08-10T14:11:18.000Z. Sources: 7. Developments: 2. In Capela Nova, Minas Gerais, municipal officials are facing legal and financial scrutiny. A court ordered the freezing of assets and financial accounts belonging to officials following allegations that approximately R$2 million was diverted from municipal funds between 2021 and 2024. The injunction, granted by Judge Marie Verceses da Silva Maiae, aims to preserve resources for potential restitution. Following these legal developments, the local administration announced the postponement of the second Capela Rock Fest, originally scheduled for September. The municipality cited the need for budgetary reprogramming due to reduced federal and state transfers, stating a priority to focus on health, education, social assistance, and infrastructure. This financial restructuring coincides with local political instability, including the installation of a disciplinary commission against Mayor Charles Moreira and the suspension of a Parliamentary Inquiry Committee. ## Timeline ### 2026-08-10: Capela Nova postpones Capela Rock Fest due to budget constraints Capela Nova has postponed the Capela Rock Fest due to budget reallocations and reduced federal/state funding, prioritizing essential services like health and education. 7 sources. https://clstr.news/cluster/capela-nova-postpones-capela-rock-fest-due-to-budget-constraints ### 2026-07-29: Capela Nova officials face asset freeze over alleged R$2 million embezzlement Judge Marie Verceses da Silva Maiae ordered asset freezes for Capela Nova officials over an alleged R$2 million municipal fund diversion, pending a civil public action. 2 sources. https://clstr.news/cluster/capela-nova-officials-face-asset-freeze-over-alleged-r2-million-embezzlement --- Cite as: Capela Nova municipal financial and political instability. CLSTR, https://clstr.news/situations/capela-nova-municipal-financial-and-political-instability