Rio de Janeiro's TCE rejects Governor Cláudio Castro's 2025 accounts, citing losses with Banco Master

The Rio de Janeiro State Court of Accounts (TCE) has rejected the 2025 accounts of Governor Cláudio Castro's administration, citing significant financial and patrimonial inconsistencies. The decision, made by a three-to-one vote in a plenary session, will be forwarded to the Legislative Assembly of Rio de Janeiro (Alerj), which holds the final authority to approve or reject the accounts.

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The accounts of Governor Cláudio Castro (PL) in Rio de Janeiro for 2025 were rejected this Monday, the 1st, by the State Court of Accounts (TCE).

The TCE's decision was based on a report by the reviewer, councilor José Gomes Graciosa, who argued that the main accounting statements "do not faithfully reflect the real financial and patrimonial situation of the State of Rio de Janeiro." Graciosa pointed to a projected deficit of R$ 14.6 billion in the 2025 Annual Budget Law (LOA), with no clear identification of funding sources. The report also highlighted inconsistencies concerning the Rioprevidência pension fund's investments in Banco Master, which Castro's administration is currently being investigated for.

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The decision, by three votes to one, occurred in a plenary session.

According to Graciosa, these investments were recorded at their full value of R$ 1.13 billion without proper recognition of losses or adjustments, even after the bank's extrajudicial liquidation. The councilor indicated "relevant deficiencies" in internal controls for risk assessment and accounting. Governor Castro is also facing scrutiny from the Superior Electoral Court (TSE), which will rule on appeals regarding his ineligibility until 2030, stemming from a conviction for abuse of power during the 2022 elections. The Public Prosecutor's Office (MPE) has warned that the absence of diploma revocation could encourage ways to circumvent punishment.

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The opinion for the rejection of the accounts will be sent to the Legislative Assembly of Rio de Janeiro (Alerj), responsible for the final decision to approve or reject the accounts of the former governor.