A significant fraud scheme has come to light involving the illegal registration of pensioners in retirees’ associations without their knowledge. This scheme has led to regular deductions from their benefits, affecting some of the most vulnerable groups in the country.
The police report that the fraud targeted pensioners living in poorer areas, where many might not notice the deductions or feel empowered to report them. Investigators are currently looking into more than 6 billion reais that they believe were misappropriated between 2019 and 2024. However, it is still unclear how much of that amount was taken unlawfully.
In response to the allegations, the head of the National Institute of Social Security (INSS) resigned last week. Additionally, six public servants have been removed from their positions as the investigation continues. Débora Floriano, the INSS’s director of budgets and finance, announced that a task force will be established to recover the missing funds, although they are still in the early stages of determining the full extent of the fraud.
This incident has raised concerns about corruption within the government. Carlos Lupi, who recently resigned, is the second high-ranking official in President Luiz Inacio Lula da Silva’s administration to step down due to corruption allegations in less than a month. Earlier in April, communications minister Juscelino Filho resigned after facing bribery charges related to 2022.
These events are particularly striking given President Lula’s own history. He spent 1.5 years in prison for corruption from 2018 to 2019, although his conviction was later overturned, allowing him to run and win a third term in office. The current situation underscores ongoing issues with corruption in Brazil’s government and raises questions about accountability and oversight in public service.