Imagine discovering the government appointed someone already under investigation for corruption to command social security. Moreover, imagine this person coordinated the same government’s transition group. Naturally, you’d think it’s incompetence, right?

However, when Alessandro Stefanutto was arrested by Federal Police on Thursday (11/13), it became clear it wasn’t an error — it was deliberate choice. Consequently, under Stefanutto’s command, criminal scheme stole $1.1 billion from retirees and pensioners between 2019 and 2024. Therefore, we’re not talking about incompetence, but criminal state capture.

The Man Lula Chose Despite Knowing

First, let’s look at facts that destroy any “we didn’t know” narrative. Alessandro Stefanutto wasn’t unknown to Lula’s government. On the contrary, he coordinated the Social Security technical group in government transition after 2022 election.

Moreover, even already investigated for corruption, Stefanutto gained privileged space in PT government. Consequently, he worked alongside entities now targeted by Federal Police and Congress investigation. Therefore, government knew exactly who they were appointing.

Carlos Lupi Takes “Full Responsibility”

On the other hand, former minister Carlos Lupi (PDT) publicly admitted Stefanutto’s appointment was his “full responsibility.” However, this admission raises crucial question: if Lupi knew about investigations and appointed anyway, was it conscious complicity?

Moreover, Lupi resigned after crisis generated by investigation. Consequently, this doesn’t seem like action of someone comfortable with their choices — it seems like flight of someone who knows they erred gravely or was complicit.

$1.1 Billion: The Size of Monstrosity

Now, let’s dimension this scheme’s gravity. Between 2019 and 2024, $1.1 billion were diverted from retirements and pensions through unauthorized association fees.

Moreover, over 6 million beneficiaries stated they didn’t recognize the fees. Therefore, we’re talking about industrial-scale crime against elderly and vulnerable people. Consequently, while retirees survived on $250/month, billions were systematically stolen.

Brazil’s Most Vulnerable Victims

On the other hand, think about who the victims were: retirees who worked entire lives, many illiterate or semi-literate, without access to technology to check statements. Similarly, pensioners, many elderly widows surviving on deceased husband’s pension.

Consequently, the scheme stole exactly from the most vulnerable — people who can’t defend themselves, who trust government, and who depend on every cent to survive.

Operation No Discount: 10 Arrests, 63 Searches

Now, let’s look at police operation dimension. In new phase launched on 11/13, Federal Police and CGU served 10 preventive arrest warrants and 63 search warrants in 15 states.

Moreover, among arrested are Stefanutto, former Bolsonaro government minister Ahmed Mohamad Oliveira, federal and state deputies, and famous “Bald INSS guy.” Consequently, scheme crossed governments and involved multiple parties.

Corruption’s Bipartisanship

On the other hand, here’s uncomfortable truth: scheme started in 2019 (Bolsonaro government) and continued until 2024 (Lula government). Therefore, INSS corruption is suprapartisan project surviving government changes.

However, Lula’s responsibility is even greater because he KNEW about investigations and CHOSE to appoint Stefanutto anyway. Consequently, he can’t claim ignorance.

Criminal Entities in Transition

Moreover, revealing fact: Stefanutto worked in transition alongside entities now investigated. Therefore, criminal organizations had privileged access to new government structuring.

Similarly, these entities — like Brazilian Fishing Workers Confederation (CBPA) and Conafer — weren’t there by chance. On the contrary, they were positioning pieces for scheme continuity under new management.

State Capture From the Start

Consequently, it’s clear Lula’s government was captured since transition by criminal organizations. Therefore, when Stefanutto took over INSS in July 2023, it wasn’t to combat fraud — it was to protect it.

4.8 Million Eligible for Refunds

Meanwhile, government extended until February 14, 2026 deadline to contest improper discounts. Moreover, 4.8 million people are eligible to join refund program.

However, here’s the problem: refund will be in single payment, but many elderly already died waiting. Moreover, bureaucracy to contest is still complex, requiring app access, calling helpline, or going to post offices.

When Returning Isn’t Enough

On the other hand, returning stolen money doesn’t erase crime. Just as thief who returns stolen product isn’t unpunished, government that allows systematic theft from retirees needs to be held accountable.

Consequently, it’s not enough to return — exemplary punishment is necessary for all involved, including those who appointed Stefanutto knowing about his investigations.

Conclusion: Criminal State Capture

In summary, Stefanutto case exposes much beyond individual corruption. Actually, it reveals systematic capture of Brazilian State by criminal organizations.

First, Stefanutto coordinated transition despite being investigated. Next, he was appointed INSS president in July 2023. Moreover, he worked alongside criminal entities from the start. Consequently, under his command, scheme stole $1.1 billion from the most vulnerable.

On the other hand, Lula’s government knew everything and chose to appoint anyway. Clearly, it wasn’t error — it was deliberate strategy to protect criminal scheme benefiting political allies.

Finally, while there’s no real punishment for ALL involved — including Lupi who appointed and Lula who allowed — schemes like this will continue repeating. Therefore, arresting Stefanutto isn’t enough: it’s necessary to investigate and punish complete chain of complicity that allowed $1.1 billion to be stolen from those who need it most.

Do you know retirees who had improper discounts? Share this article so victims know how to recover stolen money! Leave your outrage in comments!