On Wednesday, April 23, 2025, the Federal Police (PF) launched a significant operation targeting a scheme of multi-billion dollar fraud involving undue discounts on benefits for retirees and pensioners of the National Institute of Social Security (INSS). Among the entities implicated in this investigation is the National Union of Retirees, Pensioners and the Elderly (Sindnapi), which has drawn attention due to its vice-president, José Ferreira da Silva, known as "Frei Chico," who is also the older brother of President Luiz Inácio Lula da Silva (PT).
Frei Chico, who recently took on a leadership role within Sindnapi, expressed his hope that the PF would thoroughly investigate all irregularities involved. In a statement to Estadão, he said, "I hope the PF investigates all irregularities." Meanwhile, the president of Sindnapi, Milton Cavalo, stated he was unaware of the reasons that led to the union being targeted in this investigation. He emphasized that there had been no judicial warrant against the entity and that it had not experienced any searches or seizures by the PF. "We have not had anything regarding this. There was no type of seizure. All entities with technical cooperation agreements with the INSS are part of this investigation," he remarked.
Sindnapi, headquartered in São Paulo, boasts approximately 350,000 members across Brazil. Just two days before the operation, the union announced on its social media that its president, Milton Cavalo, had assumed a position as a full member of the National Council of Social Security, a nomination published on April 11, 2025, and signed by Minister Carlos Lupi.
The "Sem Desconto" (No Discount) operation involved searches in the Federal District and 13 other states. Investigators uncovered that 11 entities participated in a scheme that deducted monthly fees from retirees and pensioners without their knowledge. Since 2016, these deductions have amounted to a staggering R$ 7.99 billion, with nearly all of them deemed irregular.
The investigation included interviews with 1,300 beneficiaries who had such deductions on their pay slips. Alarmingly, the majority did not recognize having authorized these discounts and believed them to be mandatory. The report from the Comptroller General of the Union (CGU) indicated that 76.9% of the discounts made by Sindnapi were unauthorized by the beneficiaries.
In light of these developments, six public servants were removed from their positions following the operation. Notably, Alessandro Stefanutto, the president of the INSS, requested his resignation after an order from President Lula. Additionally, a federal police officer was also dismissed, though their identity remains undisclosed.
The operation has raised concerns about the integrity of various organizations associated with the INSS. The CGU identified that many of these entities lacked the operational structure necessary to provide the services they claimed to offer. Furthermore, the audit revealed that 70% of the 29 entities analyzed had not submitted complete documentation to the INSS.
Frei Chico has a long history of activism and political engagement. Born in Pernambuco and later moving to São Paulo, he began his career as a metalworker and became a prominent figure in the labor movement. His nickname, "Frei Chico," was inspired by his appearance as a welder, reminiscent of a friar. In the early 1970s, he became involved with the Brazilian Communist Party (PCB) and faced persecution during the military dictatorship, including imprisonment and torture in 1975.
His political activism significantly influenced his brother, President Lula, who was radicalized during visits to Frei Chico in prison. This experience shaped Lula's future leadership in pivotal labor strikes that transformed Brazil's political landscape.
In recent years, Frei Chico has continued to play a vital role in Sindnapi, advocating for the rights of retirees and pensioners. The union has issued statements affirming its commitment to transparency and ethical practices, emphasizing the need for thorough investigations into any irregularities related to benefit deductions. In one such statement, Sindnapi declared, "For us, the protection of retirees' rights is a fundamental priority to ensure a fair and supportive society. When allegations of irregular discounts arise, it is essential that these claims are taken seriously and investigated rigorously. These allegations can directly impact the lives of many who depend on these resources for their livelihood and well-being."
As the investigation unfolds, the implications for Sindnapi and its leadership remain significant. The union's commitment to defending the rights of its members and cooperating with authorities may play a crucial role in restoring trust among retirees and pensioners who rely on the INSS for their benefits.
In summary, the ongoing investigation into Sindnapi and the broader implications of the "Sem Desconto" operation underscore the urgent need for accountability and transparency within organizations handling retirees' benefits. As the dust settles, the outcomes of this investigation could have lasting effects on the landscape of social security in Brazil, particularly for those who have dedicated their lives to contributing to the system.
