Lula's decision that led Lupi to resign from the government

The manner in which the INSS leadership change unfolded amid the tax deduction fraud scandal made it impossible for Carlos Lupi to remain at the helm of the Ministry of Social Security. This is what the former minister stated in a live interview with CartaCapital , broadcast this Friday, the 8th.

Between the end of April and the beginning of May, after the Federal Police and the Comptroller General of the Union revealed the extent of the irregularities, Lula ordered the dismissal of the then president of the institute, Alessandro Stefanutto, and determined the appointment of Gilberto Waller Júnior to the position.

For Lupi, the decision was a sign of distrust: "When Lula announced the president of the INSS, it was a kind of intervention. And I said: 'president, When you appoint an interventor in the institution, it is because you do not trust me and I cannot continue '", he said.

On May 2, Lupi resigned —and Lula appointed then-executive secretary Wolney Queiroz to replace him. "I went to meet with him with the letter ready and asked if he agreed. He immediately asked, 'Can I call Wolney? I want to put Wolney in charge of the ministry.'"

Lupi says, however, that he holds no grudge against Lula or any member of the government. He also doesn't regret the decisions he made at the height of the crisis.

The crisis began on April 23, when the Federal Police and CGU operation increased pressure for Stefanutto's ouster. At that time, Lupi defended the INSS president's continued role in a press conference, stating that he had been "exemplary" and that he could not dismiss him before the investigations were complete. The court, however, had already ordered Stefanutto's removal.

“There I was stigmatized, as if I were defending the leader of a 'gang'” , Lupi summarized to CartaCapital more than three months after that interview. “ I would repeat the same thing I said. ”

When asked if the Ministry of Social Security was slow to act, he stated that it was not the minister's role to conduct an investigation.

"As a minister, I'm not involved in the day-to-day operations of the INSS," he reflects. "There was collusion between several corrupt entities that deceived retirees with undue deductions. And within the INSS, they formed a gang that is under investigation and facilitated this scheme between the parties."

Carlos Lupi will be summoned by the INSS (National Institute of Social Security) Parliamentary Commission of Inquiry (CPMI) , to be established this month, and will have to testify before representatives and senators. He asserts that the commission's operation is legitimate. "All those responsible should be prosecuted, have the right to a defense, and, if found guilty, go to jail," he concluded.

Reimbursement for retirees and pensioners who suffered undue deductions is underway. The refund will cost the federal government R$3.3 billion in credits granted by provisional measure.

Because it is an extraordinary credit, this money is outside the constraints of the fiscal framework and will not count towards meeting the primary result or spending limit targets.

Retirees and pensioners who contested undue discounts and have not received a response from the entity or association after 15 business days may join the reimbursement agreement.

Watch the full interview: