TCU sees Caixa Asset errors with Banco Master papers – 10/17/2024 – Market

The technical area of ​​the TCU (Federal Audit Court) concluded that Caixa Asset failed in the steps taken to analyze the purchase of R$500 million in shares from Banco Master.

The operation was blocked by the technical area of ​​the Caixa conglomerate broker after appearing to point out, among others, the reputational risk of operating with Banco Master.

After the report opposing the purchase, three technicians who signed the negative analysis were dismissed from the commissioned positions they held. In its defense to the TCU, Caixa Asset claimed that the dismissals took place in the “interest of the administration” based on the performance of the managers.

Before the opinion, proposals from the executive director of Investment Fund Management at Caixa Asset, Igor Laino, ignored the problem, acting in favor of the operation.

“The reasons given for dismissing the managers may not reflect the real basis of the decision, therefore, it is not possible to rule out the possibility of reprisal”, assessed the TCU.

“Although [as decisões de investimento] are submitted to a council, all members are subordinate to the director of Investment Funds, which guarantees him full power to make the substitutions that suit him if the managers take a position against his decisions.”

For the agency, the problem is aggravated by the “vulnerability of public bank employees in general in the face of the remuneration structure of these institutions, strongly impacted by the bonus functions”.

When contacted, Caixa Asset said that it observes the internal and external standards that govern its activities and highlighted that the information related to the process is recorded confidentially

The technicians’ opinion pointed out that among the reasons for rejecting the operation was the reputational risk of doing business with one of Banco Master’s partners, Mauricio Quadrado.

He was named in a plea bargain by Caixa’s former national superintendent Roberto Madoglio, for having allegedly paid bribes to facilitate an operation by FI-FGTS, an investment fund of the Severance Indemnity Fund managed by Caixa. With the plea bargain, Madoglio returned R$39.2 million to the public coffers.

Caixa Asset’s previous opinions analyzing the operation did not mention Quadrado or reputational risk.

As a result, the TCU concluded, “they completely omitted the results on the integrity of natural persons representing the financial institution and the Conglomerate/economic group to which it belongs, the discrediting news, in addition to processes at the CVM and the Central Bank, not even including attached”.

“In addition, they demonstrated an emphasis on positive information collected about Banco Master, few mentions of discrediting characteristics and low emphasis on relevant issues, capable of biasing decision-making”, he added.

When the case was revealed, Banco Master said that “the allegations against the aforementioned executives are untrue and the events mentioned have no relationship with the bank’s operations.” Wanted by Sheet This Thursday (17), the bank reaffirmed this statement.

Another point analyzed by the TCU is the possible conflict of interest arising from the role of Caixa’s vice-president of Wholesale Business, Tarso Duarte de Tassis, at Banco Master, as a special advisor to the presidency in the financial and legal area. Tassis is a member of the board of directors of Caixa Asset.

“In this context, it is pointed out that the structures of the three lines of defense of Caixa and Caixa Asset must remain alert regarding the need for monitoring in the face of potential conflict of interests in operations involving Banco Master in particular, considering the past relationship with this bank with Tassis”, says the opinion.

If the technical area’s proposal is approved, the TCU will question Caixa Asset about “the flaws in governance that would not have prevented the approval of the operation, were it not for the strongly based opposition” of the dismissed technicians.

The TCU must listen to Igor Laino, director of Caixa Asset and author of the opinions that left out the reputational risk of relating to Banco Master. The court of accounts also wants to know from Caixa Asset the current location of the three employees removed from their commissioned positions.