Cláudio Castro: Remember the case of Rioprevidência’s billion-dollar contributions to Master

Rioprevidência’s billion-dollar investments in funds linked to Banco Master returned to the center of Rio’s political crisis after the Federal Police operation that targeted former governor Cláudio Castro this Tuesday.

The investigation investigates contributions made by the state through the state employees’ pension fund in financial products linked to the banking institution, in a case that had already been the target of alerts and decisions from the Rio State Court of Auditors (TCE-RJ) since last year.

Rioprevidência manages the resources that pay retirement and pensions for more than 235 thousand state employees. The controversy began after TCE technicians identified an excessive concentration of resources invested in Banco Master. Initially, the fund admitted around R$960 million invested in the institution’s financial bills — securities not covered by the Credit Guarantee Fund (FGC).

As the investigation progressed, however, the court began to point to a much greater exposure. In monitoring carried out between May and July 2025, TCE technicians concluded that the total value exposed to securities issued or funds managed by Master reached R$2.6 billion, more than 25% of Rioprevidência’s assets. Now, according to information from the PF, the amount investigated already reaches R$3 billion.

The TCE’s technical area stated that it had found “serious irregularities” in the operations. In May 2025, the Court issued a formal warning to Rioprevidência managers, stating that new applications could result in “full assumption of the risk of possible irregularities” by those responsible for the fund. Despite this, the court pointed out that around R$1 billion would have been contributed later in applications linked to Banco Master.

For the rapporteur of the case at the TCE, counselor Mariana Montebello Willeman, the new investments indicated a “worsening of the scenario” and a “possibly irresponsible management of resources”. In a unanimous decision, the counselors determined that Rioprevidência should stop making new investments in financial instruments issued, administered or managed by Banco Master companies and by institutions that do not comply with the principles of financial security and prudence.

The court also decided to subpoena then-governor Cláudio Castro to evaluate a possible intervention in the state pension fund, given the risk highlighted by the technicians.

Rioprevidência has always denied irregularities. In a note released at the time, the authority stated that it had not made new investments at Banco Master since April 2024 and maintained that it fully complied with the TCE’s determinations. The agency also contested the numbers presented by the Court, claiming that the amount actually invested was approximately R$960 million and that operations remained “regular and compliant”.

The investigation originated from a complaint presented by state deputy Luiz Paulo Corrêa da Rocha. In a public hearing held in November 2024, the then president of Rioprevidência, Deivis Antunes, confirmed the existence of the applications at Banco Master.

Subsequently, a representation opened by the General Secretariat for External Control of the TCE maintained that the investments had been made without authorization from the fund’s board of directors and with justifications considered inconsistent.

During testimony in court, the former director of investments at Rioprevidência, Euchério Lerner Rodrigues, stated that the fund decided to expand investments in smaller banks from 2023 to diversify investments, until then concentrated in large financial institutions.

According to him, two factors influenced the choice of Banco Master: the profitability of financial bills, which exceeded 130% of the CDI, and the institution’s commercial relationship with the state government, as the bank operated payroll loans for active and retired state employees.

This Tuesday, the Federal Police carried out 10 search and seizure warrants in Rio de Janeiro and the Federal District by order of Minister André Mendonça. So far, the PF has not reported which crimes are being investigated nor has it detailed the targets of the searches.