INSS president defends agency’s management and early action against Banco Master at 2025 inquiry

In a crucial testimony before the National Social Security Institute (INSS) Parliamentary Inquiry Commission (CPMI) in 2025, Gilberto Waller Júnior, the president of the federal agency, vehemently denied any claims of his work being sabotaged. He firmly stood by the government’s comprehensive efforts to dismantle a massive, multi-billion-dollar fraud scheme that has plagued the institution.

The extensive hearing, which took place recently, saw Waller address various allegations and provide detailed explanations regarding the agency’s operational and strategic decisions. His defense centered on proactive measures and a commitment to protecting beneficiaries from financial malfeasance.

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A key point of contention and a focus of Waller’s testimony was the INSS’s assertive stance against Banco Master, an institution now under federal investigation for alleged illicit activities involving significant financial fraud.

Addressing internal challenges and strategic decisions

During the intense seven-hour session, Gilberto Waller refuted allegations of internal sabotage. Specifically, he confirmed to the rapporteur, Representative Alfredo Gaspar (Union-AL), that he had denied a request for the dismissal of director Léa Bressy Amorim, a decision that had drawn scrutiny.

Waller clarified the rationale behind retaining Amorim, stating that her role as Director of Information Technology is critical and highly sensitive for the entire INSS infrastructure. He emphasized the technical necessity for stability in such a vital department, despite her reported ties to former INSS president Alessandro Stefanutto.

Government’s proactive stance on beneficiary reimbursement

Waller also provided a robust defense of the government’s proposed agreement for the reimbursement of retirees and pensioners affected by fraud. He explained that the directive from the executive branch was to ensure beneficiaries received their due payments promptly, while concurrently pursuing the recovery of funds from those responsible for the billion-dollar fraudulent activities.

He underscored that these reimbursements were not sourced from the INSS’s regular budget. Instead, a provisional measure, authorized by the Supreme Court, established extraordinary credit for this purpose. This mechanism ensured that no retiree or pensioner was doubly penalized by the fraudulent schemes.

Waller’s testimony highlighted the government’s commitment to safeguarding the financial well-being of its most vulnerable citizens. He detailed how the extraordinary credit insulated the INSS budget, allowing it to continue its essential operations uninterrupted while addressing the immediate needs of those impacted by fraud.

Early warning: action against Banco Master

A significant portion of the president’s testimony focused on the INSS’s groundbreaking actions against Banco Master, positioning the agency as the first institution to take decisive measures. Waller recounted that the INSS had an active agreement with Banco Master dating back to 2020, which concluded in August of that year.

Following the agreement’s natural expiration, the INSS moved swiftly. In September 2020, it ceased its cooperation, and by October 2020, it had formally declined to renew the commitment term and notified the institution of its decision. This proactive termination predated any official warnings or public revelations about Banco Master’s illicit operations.

Waller explained that the catalyst for these early actions was an alarming surge in complaints from beneficiaries regarding Banco Master’s services. The sheer volume and nature of these grievances signaled that “something was wrong” and “smelled bad” concerning the bank’s involvement in providing payroll-deductible loans.

The president detailed the internal review process that led to the decision, emphasizing that the INSS could not ethically allow an institution with such a high level of complaints to continue serving its vulnerable population of retirees and pensioners. This strategic move demonstrated the INSS’s vigilance in protecting its constituents.

Allegations and market impact

Banco Master is currently facing a comprehensive investigation by the Federal Police regarding alleged billion-dollar fraud. The seriousness of these allegations prompted the Central Bank to decree the liquidation of Banco Master in November 2023, two years prior to this 2025 inquiry.

Waller reiterated that his own appointment to the presidency of the INSS was not tied to the current minister of the portfolio, further emphasizing his technical background and independence. He cited his extensive history in public administration, including his tenure as the Union’s Ombudsman-General, as evidence of his qualifications.

The inquiry was not without its moments of tension. Opposition members on the CPMI raised questions about perceived inconsistencies in parts of Waller’s address. However, Carlos Viana (Podemos-MG), the president of the CPMI, skillfully managed these situations, providing Waller with opportunities to clarify his statements and maintain the decorum of the proceedings.