Caldic, a global chemicals distributor majority-owned by US private equity firm Advent International, is under investigation in Brazil over alleged involvement in a large-scale methanol diversion scheme linked to organised crime, according to a report by Reuters.
The report cites company statements and regulatory documents as revealing that authorities are examining whether methanol supplied by Caldic’s Brazilian subsidiary was diverted into an illicit fuel operation allegedly controlled by the First Capital Command (PCC), one of South America’s most powerful criminal organisations. Prosecutors previously uncovered a multi-billion-dollar fuel fraud network involving adulterated fuel sold through gas stations tied to the group.
The investigation, led by São Paulo state prosecutors, is focusing on whether Caldic’s distribution channels were used – knowingly or otherwise – to supply methanol that was later misused in illegal fuel blending. While investigators have not alleged that the company or its owners were aware of the diversion, the probe highlights how global investors can become exposed to criminal infiltration in complex commodity supply chains.
Brazilian regulators have also opened a separate administrative case into Caldic’s local unit, Quantiq, reviewing methanol sales practices and compliance controls. According to regulatory documents cited in the report, authorities identified unusual transaction patterns, including shipments to inactive companies and buyers that lacked clear industrial use for the volumes purchased.
The regulator has already imposed restrictions on Quantiq’s methanol distribution and could potentially revoke its licence, depending on the outcome of the ongoing inquiry.
Caldic said it is cooperating with authorities and reaffirmed its commitment to compliance and governance standards. The company stated that an internal review found no evidence of wrongdoing by its management or representatives, though it did not provide supporting documentation.
The investigation forms part of a broader crackdown on fuel fraud in Brazil, where methanol is sometimes used illegally to adulterate gasoline and boost margins in the shadow fuel market. Authorities allege that criminal groups, including the PCC, have expanded their presence into formal sectors of the economy, including logistics, real estate and financial services.
Prosecutors are expected to decide on potential charges in the coming months, while regulatory proceedings continue to assess the scale of any compliance failures within the supply chain.
