Brasilia- Brazilian President Luiz Inacio Lula da Silva accepted on Friday the resignation of his Minister of Social Security in the middle of a corruption scandal for an alleged national scheme of fraud to retirees and pensioners, the government reported.
Carlos Lupi was in the eye of a political storm after unauthorized discounts were detected in retirement and pension receipts, made by unions and other associations with the possible collusion of officials of the National Institute of Social Security (INSS).
The Government communicated the resignation through a note to the press. “I make this decision with the certainty that my name was not cited at any time in the ongoing investigations,” Lupi defended himself in a letter disclosed in his X account.
The researchers estimate that up to 6,300 million reais (about 1.1 billion dollars) were discounted between 2019 and 2024 by unions and associations that in theory had to provide services to retirees, such as legal assistance or obtaining discounts on health plans.
An not yet determined part of that amount would have debuted illegally.
Lupi was a Social Security Minister since the return to the power of Lula in January 2023.
The president of the INSS was dismissed from his position ten days ago. Other officials of the entity, as well as a Federal Police, were suspended.
“Corruption”
In a speech this week, the leftist leader said that his government “dismantled” the illegal scheme against retirees and pensioners and ordered that those responsible be processed and forced to repair the damage.
But the opposition in Congress, conservative majority, hurries the creation of a special commission of investigation on irregularities in the Social Security System.
This is the second case of corruption facing the Executive in a few weeks.
At the beginning of April, Lula’s Minister of Communication, Justcelino Filho, resigned after being accused of alleged bribes when he was deputy in 2022. Filho denied irregularities.
Lupi’s departure, a member of a government base party, shakes the alliances of Lula on the way to the 2026 presidential elections, in which the workers’ leader could try his re -election.
