Celso Eloi is Ibaneis’ nominee for BRB after the court removed Paulo Henrique – Celso Eloi/Instagram
The government of the Federal District (GDF) appointed Caixa’s current superintendent, Celso Eloi de Souza Cavalhero, to preside over the BRB bank. A career civil servant at the state institution, Cavalhero will replace Paulo Henrique Costa, removed from office by court order. First, however, it will have to be approved by the Legislative Chamber of the Federal District.
In a note, the GDF states that Cavalhero’s appointment seeks to “ensure the administrative and financial continuity of BRB”, the target of the investigations that culminated in the triggering of the call Operation Compliance Zero by the Federal Police (PF) this Tuesday.
Operation
According to the PF, until early this afternoon, The agents participating in the operation had already made six arrests (four preventive and two temporary). Among those arrested is the owner of the Master bank, Daniel Vorcaroarrested trying to leave the country on a private jet.
By court order, federal police officers also seized around R$1.6 million in cash, as well as works of art, cars and luxury watches. The court orders are being fulfilled in Rio de Janeiro, São Paulo, Minas Gerais, Bahia and the Federal District.
In addition to Paulo Henrique Costa, the Court also decreed the temporary removal of BRB’s Director of Finance and Controllership, Dario Oswaldo Garcia Júnior.
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Distrust
Operation Compliance Zero is the result of investigations that the PF began in 2024, to investigate and combat the issuance of false credit titles by institutions that are part of the National Financial System.
The institutions investigated are suspected of creating false credit operations, simulating loans and other amounts receivable. These credit portfolios were then sold to other banks. After the Central Bank approved the accounting, institutions replaced these fraudulent credits and debt securities with other assets, without adequate technical evaluation.
According to the general director of the PF, the suspicion is that fraud against the financial system has caused something around R$12 billion.
Master, from Vorcaro, is the main target of the investigation launched at the request of the Federal Public Ministry (MPF). The bank became known for adopting an aggressive policy to raise funds, offering yields of up to 140% of the Bank Deposit Certificate (CDI) to those who purchase shares from the financial institution – a promise of earnings higher than the average rates for small banks – around 110% to 120% of the CDI.
Operations with precatório (government debt securities with a final court ruling) also raised doubts about Master’s financial health – which, by issuing bonds in dollars, was unable to raise funds, given the market’s distrust.
Negotiation
In March this year, BRB announced its intention to buy Master for R$2 billion – a value that, according to the state bank, would be equivalent to 75% of the consolidated assets of the Vorcaro bank. At the beginning of September, however, the Central Bank (BC) rejected the deal.
In a note released this morning, shortly after Vorcaro’s arrest and Paulo Henrique Costa’s dismissal became public, BRB states that “it has always acted in accordance with compliance and transparency standards, regularly providing information to the Federal Public Ministry and the Central Bank on all related operations [às negociações de compra do] Master Bank”.
Also in a note, the GDF assured that, despite the PF’s operation, the BRB maintains its full operating capacity, with complete administrative and financial security. “All banking routines, internal systems, customer services, current contracts, credit operations and institutional commitments continue to operate regularly. There is no structural impact on the liquidity, solvency or operational continuity of the institution”, guaranteed the district government.
“Additional internal measures will be adopted to reinforce governance, compliance and internal control mechanisms. The district public administration will permanently monitor the investigations and collaborate with all regulatory and supervisory bodies. The objective is to ensure the integrity of processes, preserve public assets and strengthen confidence in the Federal District’s financial system”, added the GDF.
