In December 2024, serious irregularities were detected at FOSVOC (Social Housing Fund for Construction Workers) after the financial manager, Stella Rey, went on leave, when her replacement identified suspicious transactions.
An internal audit revealed unauthorized transfers of approximately 900,000 dollars (about $35.6 million pesos (78,485 pounds) and 17,500 dollars) between February and November 2024 to 14 third-party accounts, unrelated to the Fund's benefits.
Criminal complaint
On January 28, 2025, FOSVOC filed a criminal complaint with the Office of the Attorney General for possible crimes of embezzlement, criminal conspiracy, and fraud.
Two former SUNCA leaders, Víctor Rivero (former secretary of the social area in Montevideo) and Santiago Bernaola (former member of the organization secretariat), received transfers.
Both, along with Juan Ortiz, were expelled from the union on March 18, 2025, for violating principles of honesty and solidarity.
All those mentioned were or are members of the Communist Party.
Union leaders' arrests
On June 11, 2025, three former SUNCA members were arrested as part of the judicial investigation into the multimillion-dollar embezzlement.
Several detained union leaders mentioned Communist Party senator Óscar Andrade (former SUNCA secretary general for years) and the deputy, also a communist, Daniel Diverio (current SUNCA leader) in their statements to the Prosecutor's Office.
They suggested that both Andrade and Diverio had full knowledge of the massive fraud but concealed it.
Irregular financing of the Communist Party
Several stated that the funds may have financed campaigns of the Communist Party in 2024 and 2025.
Specifically, that with illicit money the Communist Party financed the internal and national electoral campaigns of 2024 and the departmental and municipal electoral campaigns of 2025.
For now, only for now, Andrade is not formally charged.
