Paulo Henrique Costa, the former president of the Banco de Brasília (BRB), is in discussions with the Federal Police and has formally requested to give testimony again concerning an investigation into fraud connected to the Master and the public bank in the Federal District. Three anonymous sources familiar with the ongoing investigations disclosed that these discussions are not currently part of an official collaboration but seem to be progressing.

Investigators believe that Costa may have more information to offer, potentially involving a plea deal where he could provide evidence in exchange for legal benefits such as reduced penalties or even immunity from prosecution. The Federal Police are specifically looking into whether Costa was involved in the alleged falsification of documents to suppress irregularities during the purchase of unsecured payroll loan portfolios valued at R$ 12.2 billion, exchanges of other assets for these fraudulent financial products, and possible participation in other dubious financial activities.

The investigation into the Master and related fraudulent activities is significant as it underscores the issues of accountability and transparency within public financial institutions in Brazil. Given the scale of the alleged fraud and the involvement of high-level officials, the outcomes of these inquiries could lead to broader repercussions in the Brazilian banking sector, especially concerning regulatory reforms and the handling of public funds.