**Brazil's Social Security Minister Resigns Amid Pension Fraud Investigation**

The scandal has prompted widespread investigations and resignations within Brazil's federal government, raising serious concerns about corruption.

Brazil's Social Security Minister, Carlos Lupi, has stepped down just nine days after federal police announced a significant corruption investigation involving the National Social Security Institute (INSS), which is accused of defrauding pensioners of $1.1 billion (£829 million). The federal police claim that over the last decade, unauthorized deductions were made from pension payments to millions, with the stolen funds allegedly funneled to various associations and unions that collaborated with corrupt officials. Lupi has consistently denied any involvement and asserted that he initiated an investigation upon learning of the accusations.

In his resignation announcement via X, Lupi expressed confidence in his integrity, stating, "I am making this decision with the certainty that my name has not been mentioned at any time in the ongoing investigations." He expressed hope that justice would be served, emphasizing the need to identify those responsible for harming workers.

The operation, dubbed "No Discount" (Sem Desconto in Portuguese), has seen extensive action with 700 federal agents executing 211 search warrants nationwide. The police have reportedly seized assets valued at over $177 million, including luxury vehicles and substantial cash reserves. Investigations reveal that the fraud exploited pensioners, particularly in impoverished regions, by enrolling them in retirees' associations without their knowledge, leading to unauthorized deductions from their benefits.

The head of the INSS resigned last week as the scandal unfolded, and several public servants have been terminated from their positions amid the ongoing investigation. Authorities are now focusing on roughly 6 billion reais believed to have been misappropriated between 2019 and 2024, although the precise amount that was illicitly acquired remains ambiguous.

Carlos Lupi's resignation marks the second significant departure from President Luiz Inacio Lula da Silva's administration due to corruption accusations within a month, following the resignation of communications minister Juscelino Filho, who faced bribery charges. Lula himself has a tumultuous history with corruption, serving 1.5 years in prison from 2018 to 2019, although his conviction was later annulled, paving the way for his return to the presidency.