Senate Committee Approves Oversight of Post Office After Billion-Dollar Loss

The Senate Oversight and Control Committee approved a proposal to investigate the Brazilian Postal Service (Cerios) after the state-owned company reported a R$2.69 billion loss last year. The initiative, authored by Senator Damares Alves (Republicanos-DF) and reported by Flávio Bolsonaro (PL-RJ), was approved in about 30 seconds without any objections, but generated strong backlash from the government's base.

The vote, considered lightning-fast, took place on the committee's first agenda item and lasted less than a minute after the session opened. The proposal calls for the committee, in conjunction with the Federal Court of Auditors (TCU), to investigate accounting irregularities, reckless management, operational risks, and possible fraud at the Brazilian Postal Service.

“The allegations made are extremely serious. [We have] all the planning for the collection of information, hearings of important people within the institution, employees and even possible on-site visits, will substantiate a report that is reliable to all the suspicions that fall on the billion-dollar embezzlement and the crimes committed against several people within the Post Office”, said Flávio Bolsonaro this Wednesday (3).

Gazeta do Povo contacted Correios to comment on the senator's accusations and is awaiting a response.

Senator Rogério Carvalho (Workers' Party-SE), who leads the government's participation in the committee, criticized the rapid vote on the proposal and the very content of the alleged investigation. He stated that he arrived at the committee only two minutes late and that the vote was rushed to avoid debate.

"I will submit a point of order to the Senate's board of directors, highlighting all the inconsistencies in this oversight proposal, because it goes beyond the scope of this committee's jurisdiction and involves private companies. This is not a Parliamentary Commission of Inquiry (CPI). It is a committee whose duty is to oversee direct and indirect administrative bodies; it cannot go beyond that scope," he protested, calling the vote "excessive and brutal."

The opposition's offensive was considered symbolic, as the Oversight and Control Proposal (PFS) is a tool envisioned since the commission's creation in 2013, but little used. In the last ten years, only 22 proposals have been presented, and most have not advanced.

Unlike a Parliamentary Commission of Inquiry (CPI), the PFS does not have the power to summon people or break confidentiality, limiting itself to requesting information and preparing reports with technical support from the TCU.

The billion-dollar loss in 2024 was the first since 2016 , when it had a R$1.5 billion deficit. The Postal Service reported that only 15% of its branches are generating a profit.

According to the state-owned company's report released in May, net revenue from sales and services was R$18.9 billion, a 1.74% decrease compared to 2023. Meanwhile, the company's product and service costs increased 4.7%, reaching R$15.9 billion. Gross profit, the difference between revenue and costs, was almost R$3 billion, a 26% decrease compared to 2023.

At the beginning of the year, the state-owned company reported that the "blouse tax" generated an estimated loss of R$2.2 billion in 2024. The reduction in revenue occurred after the taxation on international shipments, especially goods originating from China.