CGU completes audit on Auxílio Brasil’s consigned credit and forwards report to the TSE for analysis of possible electoral use of the benefit

Summary:

A report released by the Controladoria-Geral da Uniu00e3o (CGU) on the concession of consigned credit under the Auxu00edlio Brasil (PAB) program reveals approximately R$ 8 million in unauthorized discounts on benefits for families. Over 5,000 loan contracts were signed, exceeding the 40% margin consignable, which affected around 56,000 families. The CGU audit found that Caixa Econu00f4mica Federal returned a significant portion of the resources to beneficiaries, but only within 30 days, exceeding the 2-day deadline specified by the then-Ministry of Development and Social Assistance.

The audit focused on the consignments in PAB benefits authorized by Law No. 14,431 of August 3, 2022, and regulated by Decree No. 11,170 of August 11, 2022. The report highlights the lack of execution of operational procedures and the absence of justifications for the high interest rate of 3.5% per month. The CGU recommends improvements in the process of following up on loan payments and the rectification of unauthorized discounts.