Brazil's Social Security Minister, Carlos Lupi, has stepped down from his position just nine days after authorities exposed a staggering $1.1 billion fraud scandal that has defrauded pensioners nationwide. Federal police allege that over a decade, the National Social Security Institute (INSS) unlawfully deducted payments from millions of pensioners, channeling the funds to various associations and unions, which subsequently passed on profits to corrupt officials.
In his resignation announcement on social media platform X, Lupi maintained he has not been implicated in the investigation, asserting that he initiated an inquiry upon learning of the allegations. "I am making this decision with the certainty that my name has not been mentioned at any time in the ongoing investigations," he stated. He expressed a desire for thorough investigations to identify and punish those guilty of harming the working-class citizens of Brazil.
The recent initiative, dubbed Operation No Discount (Sem Desconto), has mobilized 700 federal agents to issue 211 search warrants across the nation. Police have confiscated assets totaling over $177 million, including luxury vehicles, jewelry, and more than $200,000 in cash.
Authorities claim the fraudulent scheme involved registering pensioners as members of retirees' associations without their knowledge. Consequently, these seniors found money deducted from their benefits for memberships they never authorized. The operation reportedly exploited some of Brazil's most vulnerable populations, where retirees may not have the means or resources to challenge the withdrawals.
Lupi's resignation follows the departure of the head of the INSS, along with the removal of six public officials connected to the investigation. Investigative teams are delving into approximately 6 billion reais suspected of being misappropriated from 2019 to 2024, though it's unclear how much of that amount was illegally siphoned off. INSS's director of budgets and finance, Débora Floriano, revealed plans to establish a task force aimed at recovering the misallocated funds, though they are still assessing the overall extent of the fraud.
Lupi becomes the second minister within President Luiz Inacio Lula da Silva's administration to resign amid corruption claims in less than a month. Earlier in April, communications minister Juscelino Filho also resigned after facing bribery charges from 2022. Notably, Lula himself faced a corruption conviction in 2018-2019 but had it overturned, allowing him to mount a successful bid for a third presidential term.
In his resignation announcement on social media platform X, Lupi maintained he has not been implicated in the investigation, asserting that he initiated an inquiry upon learning of the allegations. "I am making this decision with the certainty that my name has not been mentioned at any time in the ongoing investigations," he stated. He expressed a desire for thorough investigations to identify and punish those guilty of harming the working-class citizens of Brazil.
The recent initiative, dubbed Operation No Discount (Sem Desconto), has mobilized 700 federal agents to issue 211 search warrants across the nation. Police have confiscated assets totaling over $177 million, including luxury vehicles, jewelry, and more than $200,000 in cash.
Authorities claim the fraudulent scheme involved registering pensioners as members of retirees' associations without their knowledge. Consequently, these seniors found money deducted from their benefits for memberships they never authorized. The operation reportedly exploited some of Brazil's most vulnerable populations, where retirees may not have the means or resources to challenge the withdrawals.
Lupi's resignation follows the departure of the head of the INSS, along with the removal of six public officials connected to the investigation. Investigative teams are delving into approximately 6 billion reais suspected of being misappropriated from 2019 to 2024, though it's unclear how much of that amount was illegally siphoned off. INSS's director of budgets and finance, Débora Floriano, revealed plans to establish a task force aimed at recovering the misallocated funds, though they are still assessing the overall extent of the fraud.
Lupi becomes the second minister within President Luiz Inacio Lula da Silva's administration to resign amid corruption claims in less than a month. Earlier in April, communications minister Juscelino Filho also resigned after facing bribery charges from 2022. Notably, Lula himself faced a corruption conviction in 2018-2019 but had it overturned, allowing him to mount a successful bid for a third presidential term.
