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Caldic, a global chemicals distributor backed by Advent International, is under investigation in Brazil over its alleged role in a large methanol diversion network linked to the First Capital Command (PCC). Authorities are examining whether the company’s supplies were used in a multibillion-dollar fuel fraud operation involving adulterated fuel sales. While no direct involvement of management has been established, regulators have flagged compliance gaps, unusual shipment patterns, and missing cargoes. The company has denied wrongdoing and said it is cooperating with authorities, while Brazil’s fuel regulator continues its parallel administrative probe.
Caldic, a Netherlands-based chemicals distributor majority-owned by Advent International, is facing criminal and regulatory investigations in Brazil over its alleged involvement in a large methanol diversion network tied to organised crime. The probe relates to suspected supply links to a fuel fraud operation connected to First Capital Command, according to official documents and sources familiar with the matter. Advertisement
Authorities had uncovered a USD 10 billion fuel fraud scheme in the past year involving fuel stations controlled by the PCC, where methanol was illegally sold or mixed with fuel. Investigators identified Caldic as a primary supplier of methanol linked to the operation, although there is no evidence so far suggesting that the company or its parent firm knowingly enabled the diversion.
The investigation, led by prosecutors in São Paulo, highlights the growing risk of organised crime infiltrating formal sectors such as fuel distribution, real estate and financial services in Latin America. The PCC, which originated in the prison system decades ago, has expanded into one of the region’s largest criminal networks with deep economic links.
Another distributor, GPC Quimica, has also come under scrutiny for its methanol transactions, though the volumes under question are reportedly smaller than those linked to Caldic.
Brazil’s fuel regulator, National Agency of Petroleum, Natural Gas and Biofuels, has initiated an administrative proceeding into Caldic’s local subsidiary Quantiq. The regulator restricted the company’s methanol sales and warned that its distribution licence could be revoked, citing compliance failures and irregular shipment patterns.
Regulatory findings indicated that nearly a quarter of Quantiq’s methanol sales raised concerns, as several declared buyers were either inactive, did not receive shipments, or lacked the capacity to use the volumes purchased. Internal communications reviewed by authorities reportedly showed exchanges between company employees and individuals linked to the PCC.
Methanol, a controlled substance in Brazil, is widely used in biodiesel production but can be dangerous if misused. It is cheaper than ethanol, making it attractive for illegal fuel adulteration practices that increase profit margins. Authorities noted that since 2024, distributors are responsible for ensuring proper end-use of such chemicals.
Data from the regulator showed that Quantiq sold around 190 million litres of methanol over an eight-month period in the past year. A significant portion of these shipments, imported through the Paranaguá port, did not reach the intended buyers. In several cases, customers purchased volumes far exceeding their operational needs, raising further red flags.
In one instance, a buyer acquired approximately 25 million litres over eight months despite reporting monthly consumption of about 630,000 litres. The remaining volumes could not be accounted for.
The probe also identified two former Quantiq employees who had long tenures at the company and were allegedly involved in coordinating shipments with individuals linked to the PCC. These individuals were not part of senior management.
Caldic, through its Brazilian subsidiary, stated that it is cooperating fully with investigators and remains committed to compliance and integrity standards. The company added that an internal audit found no evidence of wrongdoing by its management, though it did not disclose further details or documentation of the audit.
Advent International clarified that the investigation does not directly involve the investment firm but reiterated that it expects high compliance standards across its portfolio companies.
Regulatory scrutiny on Quantiq is not new. Authorities had previously flagged compliance concerns in 2023 and advised the company to strengthen its due diligence systems. Following restrictions imposed in November, the regulator allowed limited resumption of methanol sales in February with additional safeguards, pending a final decision.
Prosecutors are expected to determine the next course of action, including potential civil and criminal charges, by June, while continuing to assess the extent of the company’s role in the alleged scheme.
Source Reuters
5th Jun, 2025
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