Carlos Lupi, Brazil's Social Security Minister, has resigned just nine days after federal police revealed a staggering corruption scandal that reportedly defrauded pensioners of $1.1 billion (£829 million). Federal investigators allege that over the past ten years, the National Social Security Institute (INSS) executed unauthorized deductions from the pensions of millions, funneling the money to various associations and unions that colluded with corrupt officials.
Despite Lupi's insistence that he has not been implicated in any wrongdoing, he decided to resign, expressing hope the investigation would identify and penalize those responsible. "I am making this decision with the certainty that my name has not been mentioned at any time in the ongoing investigations," Lupi stated on X when announcing his resignation. He emphasized the importance of accountability in government, particularly for actions that harm the working class.
The ongoing operation, dubbed "No Discount" (Sem Desconto in Portuguese), has seen nearly 700 federal agents executing 211 search warrants across Brazil as part of an extensive probe. Over $177 million in assets, including luxury vehicles, jewelry, and substantial cash sums, have been seized.
Authorities claim the fraud entailed registering pensioners as members of retirees' associations without their knowledge, leading to illicit deductions from their benefits. Investigators revealed that the scheme primarily targeted some of Brazil's most impoverished regions, where elderly citizens were less likely to notice or report the fraud.
Lupi's resignation marks a significant event in a government already grappling with corruption allegations, as he is the second member of President Luiz Inacio Lula da Silva's administration to step down in less than a month. Earlier in April, Communications Minister Juscelino Filho resigned after being accused of accepting bribes. Notably, Lula himself faced his own legal battles over corruption but saw his convictions annulled, enabling him to return to the presidency for a third term. As investigations continue, determining the full extent of funds diverted remains a priority for authorities.
