Romeu Zema’s Attempt to Link INSS Fraud to Lula Backfires: Investigation Reveals Scheme Began in 2019

In April 2025, Minas Gerais Governor Romeu Zema (Novo) attempted to associate President Luiz Inácio Lula da Silva (PT) with a fraud scheme involving the National Institute of Social Security (INSS). However, investigations revealed that the fraudulent activities commenced in 2019, during the administration of former President Jair Bolsonaro.

The Fraud Scheme Unveiled

A joint operation by the Federal Police and the Ministry of Social Security uncovered a criminal network that, between 2019 and 2022, exploited the INSS system. The group used falsified documents to impersonate beneficiaries, opened bank accounts to receive diverted funds, and even secured loans against these fraudulent benefits. The scheme affected numerous legitimate beneficiaries who discovered discrepancies only upon seeking their rightful payments. 

Zema’s Political Maneuver

Governor Zema, known for his critiques of the federal government, seized upon the scandal to criticize President Lula. He suggested that the current administration’s policies facilitated such fraudulent activities. However, this assertion was quickly challenged by evidence indicating that the fraudulent operations began in 2019, predating Lula’s current term.

Legislative Actions Against Fraud

In response to concerns about social security fraud, President Bolsonaro signed Provisional Measure 871 in January 2019, aiming to tighten controls over benefit distribution. This measure was later enacted into law in June 2019, introducing stricter verification processes and aiming to save approximately R$9.8 billion by reviewing over 5 million benefits. 

Lula’s Response and Broader Context

President Lula has previously criticized the Bolsonaro administration for what he termed a “dismantling” of the INSS, leading to significant backlogs and inefficiencies. He emphasized the need for comprehensive reforms to restore the integrity and efficiency of the social security system.

Political Implications

Zema’s attempt to link the fraud to Lula appears to be part of a broader pattern of political rivalry. The governor has consistently criticized federal policies, particularly those related to economic management and public spending. However, the revelation that the fraud began during Bolsonaro’s presidency undermines Zema’s narrative and highlights the complexities of attributing systemic issues to a single administration.

Conclusion

The INSS fraud case underscores the challenges of maintaining integrity within large governmental systems and the risks of politicizing such issues. While accountability is essential, it’s crucial to base critiques on accurate timelines and evidence to ensure constructive discourse and effective policy responses.