An internal audit by Cedae has brought new elements to the investigation into investments made in Banco Master and concluded that the company may have accumulated losses exceeding R$ 220 million from investments in the financial institution. The report also identified similarities between the process adopted by the state-owned company and the strategy used by Rioprevidência, which also directed resources to the bank.
The documents show that the State of Rio de Janeiro invested almost R$ 4 billion in Banco Master. Of this total, approximately R$ 3,7 billion was invested by Rioprevidência (Rio de Janeiro's pension fund), while another R$ 237 million came from Cedae (Rio de Janeiro's water and sewage company). The audit was conducted by the company's current management and forwarded to the state-owned company's board of directors with a recommendation to send it to the regulatory bodies.
The bank did not meet the criteria.
According to the investigation, when negotiations began for an investment of R$ 200 million in 2023, Banco Master did not meet the requirements stipulated in the company's investment policy.
The audit indicates that the institution had a risk rating lower than required by the internal regulations at the time and was evaluated by only one credit rating agency. Even so, months later, the investment policy was changed, allowing investments in institutions with characteristics similar to those of the bank.
The timeline reconstructed by the auditors shows that Cedae had approved, in March 2023, a policy requiring a minimum grade equivalent to “A-” and evaluation by at least two independent agencies. In July of that year, documents received from the financial institution indicated a “BBB-” rating, which, according to the audit, should have prevented the investment. However, the rules were relaxed in September.
Alerts ignored
Another point highlighted by the report involves the management of the investment after the funds have been allocated. According to the audit, different sectors of the company began issuing warnings about Banco Master's financial situation throughout 2025.
Despite recommendations to reduce the state-owned company's exposure, the finance department was slow to act. When the company attempted to fully recover the funds in September 2025, the bank was already facing liquidity difficulties. Shortly afterward, a portion of the repayment was not paid, and subsequently, the Central Bank decreed the extrajudicial liquidation of the institution.
The document also cites suspicions of negligence, systemic fraud, and risk to the company's assets. Among the names mentioned is the then administrative-financial director of Cedae, Antonio Carlos dos Santos.
Meeting after dinner in New York
The audit also identified that the first recorded meeting between representatives of Banco Master and members of Cedae's financial board took place six days after a dinner hosted by banker Daniel Vorcaro for then-governor Cláudio Castro in New York.
The meeting had already been mentioned in a Federal Police investigation currently underway at the Supreme Federal Court (STF). However, the auditors emphasize that they did not establish any connection between the dinner and the investments subsequently made by the state-owned company.
Furthermore, records analyzed by the audit team indicate that negotiations began earlier than had been officially reported to the Securities and Exchange Commission (CVM), reinforcing questions about the conduct of the process.
What the stakeholders say
In a statement, Antonio Carlos dos Santos said he repudiated the audit's conclusions and declared that all stages related to the investment policy were monitored by the company's Board of Directors, which received periodic reports on financial investments.
The current management of Cedae reported that it has made changes to the investment policy, dismissed those responsible for the investments, and will adopt measures to identify responsibilities, calculate the definitive loss, and seek eventual reimbursement to public funds.
Former governor Cláudio Castro stated that he does not interfere in the state-owned company's investment decisions and denied any connection between the dinner held in New York and the investments made by the company in Banco Master.
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