São Roque Prev ex-director ordered to repay R$ 93 million

The São Paulo State Court of Accounts (TCE-SP) has ruled that the 2024 accounts for the São Roque Social Security Institute (São Roque Prev) are irregular. Vanderlei Massarioli, the former president of the institute, has been ordered to reimburse R$ 93.15 million to the fund.

The decision follows high-risk investments made into financial letters from Banco Master. According to the court, the institute performed seven such applications between April and September 2024, representing approximately 18.2% of its investment portfolio by the end of that year. The investigation noted that part of the operation involved exchanging AAA-rated securities from BTG Pactual for BBB-rated titles from Banco Master, which fell below the institute’s required minimum rating of BBB+.

In addition to the reimbursement, Massarioli was fined 2,000 State Fiscal Units (UFESPs). The court has also proposed investigating the consultancy firm Crédito & Mercado and has referred the case to the State Public Ministry for potential criminal investigation. Massarioli has maintained that the decisions were collegiate and based on specialized opinions prior to the bank's financial deterioration.