Canada’s largest union is demanding that the $387.1 billion Canada Pension Plan Investment Board (CPPIB) abandon its investment in a private water and sewage treatment service provider in Brazil. The Canadian Union of Public Employees (CUPE) said CPPIB is taking part in a “risky” sell-off of public water and sewage infrastructure being led by controversial President Jair Bolsonaro.

“The involvement of the CPPIB in support of Bolsonaro’s privatization program would serve to legitimize his disregard for the needs of the population,” the CUPE said in a letter earlier this month to CPPIB President and CEO John Graham.

At issue is the Canadian pension fund’s March acquisition of a 45% stake in Iguá Saneamento, Brazil’s third-largest private water and sewage treatment service provider. CPPIB reported that it agreed to pay nearly 1.2 billion Brazilian real (US$217 million) for the stake.

“The opportunity to invest in a platform that can address the high demand for improved water and sanitation services in Brazil is a good fit with our diversified global infrastructure portfolio,” Scott Lawrence, managing director and head of infrastructure for CPPIB, said at the time.

But CUPE said Iguá Saneamento used CPPIB’s funds to buy a public water system being auctioned off in the state of Rio de Janeiro. The union also said there is “significant evidence” refuting claims that privatized water and wastewater services provide expanded and affordable access for poor and marginalized communities.

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