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Home»World»Social security minister latest to quit in major pensions fraud scandal
World

Social security minister latest to quit in major pensions fraud scandal

May 3, 2025No Comments3 Mins Read
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Brazil’s Social Safety Minister, Carlos Lupi, has resigned 9 days after police unveiled a significant corruption scandal which defrauded pensioners of $1.1bn (£829m).

Federal police allege that over the previous decade, the Nationwide Social Safety Institute (INSS) made unauthorised deductions from funds made to hundreds of thousands of pensioners.

The cash was allegedly paid to a number of associations and unions, which then shared the earnings with corrupt authorities officers.

Lupi has all the time denied any wrongdoing and stated he ordered an investigation as quickly as he heard concerning the allegations.

“I’m making this resolution with the knowledge that my identify has not been talked about at any time within the ongoing investigations,” Lupi wrote on X when asserting his resignation.

“I hope that the investigations observe their pure course, establish these accountable and punish, with rigor, those that used their positions to hurt the working individuals,” he wrote.

Operation No Low cost (Sem Desconto in Portuguese) has seen 700 federal brokers situation 211 search warrants throughout Brazil, federal police stated in an announcement.

Property value greater than $177m have been seized – together with luxurious vehicles, jewelry and greater than $200,000 in money.

The fraud allegedly concerned registering pensioners as members of retirees’ associations with out their consent, however because of this they’d cash usually deducted from their advantages for the memberships.

Police stated the scheme focused among the poorest areas of the nation, the place pensioners have been unlikely to note the fraud or complain about it.

The top of the INSS resigned final week over the allegations, and 6 public servants have been faraway from their posts, federal police stated.

Investigators are specializing in greater than 6bn actual they consider was diverted between 2019-2024, however how a lot of that cash was taken illegally stays unclear.

The INSS’s director of budgets and finance, Débora Floriano, stated a process drive will will likely be set as much as return the lacking cash, however at this stage they’re nonetheless making an attempt to find out the dimensions of the fraud.

Carlos Lupi is the second individual in President Luiz Inacio Lula da Silva’s authorities to lose their place attributable to corruption allegations in lower than a month.

In early April, communications minister Juscelino Filho stepped down after he was charged with taking bribes in 2022.

Lula himself spent 1.5 years in jail in 2018-2019 for corruption, however the conviction was later thrown out, permitting him to run – and win – his third time period as Brazil’s president.

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