Romeu Zema Tries to Blame Lula for INSS Fraud, Gets Fact-Checked: The Scheme Began in 2019

In a move that sparked controversy across Brazil’s political landscape, Minas Gerais Governor Romeu Zema (Novo) attempted to associate President Luiz Inácio Lula da Silva (PT) with a large-scale fraud involving the National Institute of Social Security (INSS). However, the attempt to pin blame on the current administration quickly unraveled when investigators confirmed that the fraud scheme began in 2019—during the presidency of Jair Bolsonaro.

As the story gained traction on April 25, 2025, Zema’s comments triggered widespread backlash, with critics accusing him of politicizing a serious criminal matter and distorting facts to attack a political rival.

What the INSS Fraud Involved

The fraud scheme, uncovered through a joint investigation by the Federal Police and the Ministry of Social Security, centered on fraudulent benefit claims within the INSS system. Criminal organizations reportedly:

• Falsified documents to create fake beneficiaries,
• Opened bank accounts to receive benefit payments,
• Took out loans using those fraudulent benefits as collateral.

The scam persisted for years, with investigators estimating that the fraudulent operations spanned from 2019 to 2022. It only came to light as new audits and digital tracking systems flagged irregularities in thousands of accounts.

While the full financial impact is still being tallied, early figures suggest the losses could run into hundreds of millions of reais, affecting not only public funds but also legitimate recipients, some of whom experienced delays and complications in accessing their rightful benefits.

Zema’s Accusations and Political Context

Governor Zema, a vocal critic of Lula and the Workers’ Party (PT), seized on news of the fraud to question the federal government’s management of social programs. On social media and in public interviews, he implied that Lula’s administration either ignored signs of corruption or was complicit in the lack of oversight that enabled such fraud to thrive.

However, the move backfired. Within hours, journalists, analysts, and political figures pointed out that the fraud scheme actually started in 2019, long before Lula returned to office in 2023. This revelation effectively turned the spotlight back on the Bolsonaro government, under which the criminal operation began and flourished.

The Bolsonaro Administration’s Role

In January 2019, President Jair Bolsonaro issued Provisional Measure 871, a legal directive designed to combat fraud in INSS benefits. While the measure was later converted into law, its implementation focused on reviewing old pensions, targeting rural workers, and removing ghost beneficiaries.

Ironically, despite this anti-fraud stance, the current investigation reveals that significant holes remained in the system. Experts now argue that while Bolsonaro’s administration took visible steps against fraud, it failed to implement the structural reforms and technological upgrades that would have closed the most critical loopholes.

The situation has reignited debates over the real effectiveness of MP 871 and whether it was more symbolic than substantive.

Lula’s Response and Ongoing Reforms

In light of Zema’s accusations, President Lula’s allies responded with documents and official reports demonstrating that the fraud predates his current term. Lula himself has often spoken about the “dismantling” of the INSS system under Bolsonaro’s government, pointing to:

• Budget cuts,
• Workforce reductions in INSS agencies,
• The abandonment of modernization projects,
• A growing backlog of more than 5 million benefit requests.

Since returning to office in 2023, Lula has pledged to rebuild the social security system, investing in digitalization, oversight mechanisms, and better staff training to minimize errors and prevent fraudulent activity.

Speaking during a press conference this week, Lula stated, “We are committed to transparency and accountability. The people deserve a social security system that works for them—not one that’s exploited by criminal groups.”

Public and Political Reactions

The public reaction to Zema’s claims has been mixed. Supporters of Bolsonaro and right-leaning groups echoed the governor’s sentiments, accusing Lula of using the system for political gain. However, many others—especially in media and academia—called out Zema for spreading misleading narratives.

“Blaming a fraud that started in 2019 on a government that took office in 2023 is intellectually dishonest,” said political analyst Carla Medeiros. “It’s a classic case of opportunism, and the facts speak for themselves.”

Some PT politicians even joked that Zema should have “read the date” before making public statements, with hashtags like #ComeçouEm2019 trending on social media.

Why This Matters

This controversy highlights the deep political polarization in Brazil. Rather than focusing on fixing broken systems, some leaders are more invested in scoring political points. Unfortunately, that only distracts from the actual solutions needed to prevent future fraud and ensure social benefits reach those who truly need them.

Moreover, this episode is a stark reminder of how misinformation—whether intentional or not—can shape public perception. While investigations are still ongoing, what’s clear is that accountability must be based on facts, not partisan narratives.

Conclusion

Governor Zema’s attempt to tie Lula to a fraud scandal has exposed more about Brazil’s political divisions than about the actual case. With evidence showing that the fraudulent scheme began in 2019, it’s clear that the roots of the problem lie deeper than current political disputes.

As Brazil continues to confront corruption and inefficiency in public services, the focus must shift away from blame games and toward real accountability, better governance, and modern, fraud-resistant infrastructure.