The arrest of former INSS president Alessandro Stefanutto by the Federal Police (PF) should give fresh impetus to the CPI regarding corruption at the institute, exhaust the government, and spark new investigations in both Congress and the PF. Stefanutto was the head of the INSS during Lula’s government, but was fired in April when the fraud was discovered.
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The former head of INSS took part in the transition after Lula’s election victory, taking office in mid-2023 following the former president’s resignation and support from then-Social Security Minister Carlos Lupi. Opponents plan to use new discoveries, such as the monthly transfer of 250,000 reais that Stefanut received in bribes, to pin the scandal on the Planalto Palace.
This rationale makes use of the fact that José Carlos Oliveira, former social security minister in the Jair Bolsonaro government, was cited by the PF as someone who played a “strategic” role in the “functioning and defense” of the unfair discount system. Police noted that the former minister received R$100,000 from financiers of the National Federation of Family Farmers and Rural Family Entrepreneurs (Konafa).
The government had concerns at the beginning of the investigation, but the investigation made slow progress and the situation was contained. CPI President Carlos Viana now understands that the latest PF operation has resulted in the jailing of the group’s central figure and financial backbone suspected of embezzling social security benefits. For now, all that remains is to advance what he calls the “first tier” of the organization: the politicians who appointed officials who engage in corrupt practices in various governments.
Suspicions have been raised behind the scenes at the CPI that in addition to deputy Euclides Pettersen (R-MG), who is being targeted by the PF, there are at least three other deputies involved in the scheme. Other names have already been mentioned, such as Sen. Weberton Rocha (PSD-MA), who is suspected of having ties to Antonio Antunez, a lobbyist known as Careca of the INSS, who is a key figure in the case.
The arrest of Stefanut and former INSS leaders was seen as a major victory for the CPI opposition. The parliamentarians used the occasion to recall that they had tried to summon José Ferreira da Silva and Fray Chico, the brother of President Luiz Inacio Lula da Silva, for example, but were prevented by the base.
— There is no point in protecting CPI as another investigation is underway. There are many people who need to be swept under the carpet, said the commission’s acting rapporteur Alfredo Gaspar (Union-Alabama) last Thursday.
Mr. Viana said he understood that Mr. Stefanut’s arrest confirmed the CPI’s core theory that “there was a structured, repetitive and specialized program within the INSS.” For the president, the commission managed to break “the regimental shield they tried to impose.”
–If we had relied on government infrastructure, nothing would have been investigated. Arrests and raids in 17 states have disrupted the official narrative. He said the investigation is now at the stage where responsibility will be determined.
The aim is to analyze appointments, administrative actions and breaches of confidentiality to understand financial dynamics and connections, Viana said.
Deputy Duarte Jr. (PSB-MA), vice president of the CPI and member of the base, trivializes the idea that this operation represents a burden on the government, precisely because it affected former members of the Lula and Bolsonaro governments.
— There is no need to waste time on this partisan battle, because this scandal has been fought through the Temer, Bolsonaro and Lula governments. That’s everyone’s problem. This wear and tear is for INSS, he said.
This is the first time that the PF’s “No Discount Operation” has advanced on the “political core” of an alleged plan. Conafer president Carlos López, one of the 10 people targeted by the arrest warrant and the only one on the run, has been identified as the group’s “leader” and “center of gravity.” Because of the good communication between the members, López led the launch of the Mixed Parliamentary Front to champion entrepreneurship in April 2024. Mr. López is considered a key figure within the CPI who will take political responsibility for the project. He was arrested after he claimed that members of Congress had lied during his testimony.
According to the PF, federal deputy Euclides Pettersen (R-MG), who is subordinate to Mr. López in the “political core,” will be the “highest paid person on the list of bribes” with the code name “Hero E,” which will be awarded to “persons who influenced the nomination” of the INSS administrator’s name. According to the PF report, he received bribes of R$14.7 million.
In a statement, he said he “fully supports the efforts of the competent authorities” and “stands ready to provide any necessary clarification.” According to the PF, the core was responsible for maintaining technical cooperation agreements that enabled unfair discounts and protected suspects.
Viana said the possibility of accusations had been discussed from the very beginning of the operation. He told parliament last Thursday that businessman Mauricio Camisotti, who is the subject of an investigation, must make a statement.
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