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CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26

Public Company

 

Centrais Elétricas Brasileiras S/A ("Eletrobras") hereby informs the market and its shareholders that it received today, from the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários –  "CVM") Official Letter No. 316/2016-CVM/SEP/GEA-1 requesting further clarification regarding some acts carried out under criminal suit No. 0510926-86.2015.4.02.5101 and Official Letter No. 317/2016-CVM/SEP/GEA-1 requesting, further clarification on news published today in the weblog "O Antagonista", under the headline: "Exclusive: organizational chart of atomic bribery", as reproduced below.

 

Regarding the Office Letters mentioned above, we would like to clarify the following:

 

1. It is public information that there is an ongoing criminal suit against Mr. Othon Luiz Pinheiro da Silva, one of our subsidiaries, Eletrobras Thermonuclear SA ("Eletronuclear"), former CEO, among other people, before the 7^th Federal Criminal Court of the City of Rio de Janeiro. The main charges are corruption, money laundering and criminal association in connection with agreements relating to the construction of Angra 3 power plant.

 

2. It is also known that we, as victim of the crimes pointed by the federal prosecutors, requested to be part of the criminal suit as assistant prosecutor and, therefore, be able to present our closing arguments. In order to obtain a decision that will allow us to be indeminified by any damages arising from unlawful activities that were charged by the Public Prosecutor Office, we joined the Public Prosecutor Office on the charges against the defendants, considering the terms of their collaboration agreements authorized by the court (Section 4, item 11 of Law No. 12,850/13).

 

3. In addition to the Notice to the Market released this morning, we also would like to clarify that under the so-called Operação Pripyat ("Operation Pripyat"), the Brazilian Federal Police served warrants of arrest granted by the 7^th Federal Court of the City of Rio de Janeiro against former managers and managers who were already suspended from Eletronuclear and against third parties.

 

4. The warrants of arrest were issued against Eletronuclear's former executive officers, Mr. Othon Pinheiro da Silva and Mr. Persio José Gomes Jardini and against Mr. Luiz Antonio Amorim Soares, Mr. Edno Negrini, Mr. Luiz Manuel Amaral Mesias and Mr. José Eduardo Brayner Costa Mattos, Eletronuclear's managers and employees. They were already suspended from Eletronuclear due to a previous decision of the Board of Directors.

 

5. The decision to suspend, by the Board of Directors, is described in the Formulário de Referência for the year of 2016, filed with the CVM on May 2016.

 

 

 

6. In the Operation Pripyat, the Brazilian Federal Police also served warrants for an suspended Eletronuclear's employee, Mr. Valter Luiz Cardeal, our Chief Generation Officer and Pedro Figueiredo, CEO of Eletronuclear at that time, who has been suspended from its position today by a court decision, to testify and provide some explanations.

 

7. According to information released by the Federal Prosecutor Office, Mr. Pedro Figueiredo was suspended to avoid his interference in the ongoing investigations

 

8. We will keep the market informed regarding the appointment of the Eletronuclear's new CEO.

 

9. Last, we inform that we will cooperate with the Federal Prosecutor's Office with the delivery of data and information concerning individuals investigated in the Operation Pripyat that may be required to us and to Eletronuclear.

 

 

Rio de Janeiro July 06, 2016

 

Armando Casado de Araujo

CFO and Investor Relation Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Translation of Office Letter No. 316/2016-CVM/SEP/GEA-1

  

  

"Subject: Reinforcement of Clarification Request

Official Letter No. 312/2016/CVM/SEP/GEA-1

Criminal Suit No. 0510926-86.2015.4.02.5101

 

Dear Officer,

 

We make reference to the Official Letter mentioned above, dated as of July 01, 2016, regarding the request for clarification to the market about the progress of the criminal suit brought by Federal Prosecutor's Office against Othon Luiz Pinheiro da Silva, among others, in which the final arguments are dated as of June 02, 2016, as well as in relation to the work performed by the internal and independent investigation commissions on this matter,  in particular concerning the possible ivolvement of Valter Luiz Cardeal de Souza, Chief Generation Officer.

 

We consider the response in the Notice to the Market filed with the Empresas.Net System on July 04, 2016 at 06:57 p.m. not sufficient, considering evidences of new facts that would justify their disclosure to the market and the lack of information about the progress of the investigations conducted by the internal investigation committees on this matter.

 

That being said, we reinforce the need for clarification on this matter.

 

This response should be delivered through the Empresa.NET System, category: Notice to the Market, type: Clarifications Inquiries CVM/BOVESPA, subject: Disclosed in the Media, which should include a transcript of this Official Letter.

 

Please note that the Superintendence of Corporate Relations, by exercising its powers and according to Section 9, item II of Law No. 6,385/76 and CVM Instruction No. 452/07, will determine the application of a fine in the amount of R$1,000.00, without excluding other administrative sanctions that may be applied, if the requirement set forth herein are not complied within 1 (one) business day from the date of knowledge of this notice, which was sent exclusively by email, despite Section 6, sole paragraph, of CVM Instruction No. 358/02. 

 

 Regards"

 

 

 

 

 

 

Free Translation of Office Letter No. 317/2016-CVM/SEP/GEA-1

  

"Subject: Request for clarification regarding news

  

Dear Officer,

 

1. We make reference to the news published today in the weblog "O Antagonista", under the headline: "Exclusive: organizational chart of atomic bribery", in which the following statements can be found:

 

Says the Public Prosecutor Office:

[…]

The current CEO of Eletronuclear, Pedro José Diniz Figueiredo, was suspended from his position due to

 evidences that he favored Othon Luiz and interfered in the course of internal investigations that were being undertaken by an independent investigation commission created by Eletrobras . "

 

2. We ask Eletrobras to clarify whether these news are true and, if so, we ask why it understood this, as well as other information deemed important on this matter that should have been exposed, not to be relevant facts.

 

3. This response should be delivered through the Empresa.NET System, category: Notice to the Market, type: Clarifications Inquiries CVM/BOVESPA, subject: Disclosed in the Media, which should include a transcript of this Official Letter.

 

4. Please note that the Superintendence of Corporate Relations, by exercising its powers and according to Section 9, item II of Law No. 6,385/76 and CVM Instruction No. 452/07, will determine the application of a fine in the amount of R$1,000.00, without excluding other administrative sanctions that may be applied, if the requirement set forth herein are not complied within 1 (one) business day from the date of knowledge of this notice, which was sent exclusively by email, despite Section 6, sole paragraph, of CVM Instruction No. 358/02. 

 

 

Regards"