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CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26

COMPANHIA ABERTA

 

 

Centrais Elétricas Brasileiras S/A ("Company" or "Eletrobras") hereby informs its shareholders and the market in general that received on August 15, 2016, the Official Letter No. 391/2016-CVM/SEP/GEA-1 of Comissão de Valores Mobiliários ("CVM"), requesting clarification regarding news published by "Reuters" under the title: "Minister does not believe in new write-offs of Eletrobras because of corruption", as transcribed by the end of this notice.

 

In response to the Official Letter in question, the Company clarifies the following:

 

1. The investigation work conducted by Hogan Lovells, are still ongoing, therefore, the information available is not sufficient for the Company to evaluate, according to the laws of Brazil and the United States, the possible occurrence of impacts on the Financial Statements.

 

2. Despite the Company's efforts and the availability of all financial resources, staff and by third parties the investigation schedule in reference was strongly impacted by difficulties faced in the investigation of certain Special Purpose Entities in which Eletrobras holds a minority interest due the limitations resulting from the Brazilian corporate law, as well as the difficulty of access to the testimonials and plea bargaining and vigilantism, kept confidential under the "Lava Jato" operation.

 

3. As soon as that such work evolve and, if leading to findings and produce enough information and data to evaluation of the Company in accordance with the laws of Brazil and the United States, the possible occurrence of impacts on the Company’s Financial Statements, will be given the same legal and regulatory relevant treatment.

 

 

 

 

4. The Company will keep the market informed about the evolution of the subject reported in this market announcement.

 

 

 

Rio de Janeiro, August 16, 2016.

 

Armando Casado de Araujo

CFO and Investor Relations Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Free Translation Officlal Letter nº 391/2016-CVM/SEP/GEA-1]

 

“Subject: Clarification request about News

 

Dear Officer,

 

1.      We make reference to the news entitled "Minister does not believe in new write-off of Eletrobras for corruption", broadcast on Reuters today, 08/15/2016, bearing the following statements below:

 

"Eletrobras will not need to perform other related writed-off because of corruption cases investigated by Operation Lava-Jato after a series asset impairments announced on their latest financial statements, said the Minister of Mines and Energys, Fernando Coelho Filho, on Monday.

 

In an interview after an event in Sao Paulo, he also said that provisions made by Eletrobras should be sufficient in case of being some impact of the deviations detected in the company's works.

 

"In fact, Eletrobras has already provisioned a good amount. From the information that we have both the independent audit as of international companies, the provisioned figure that is sufficient for covering any kind of damage," he said.

(By Luciano Costa) "

 

 

2.      Relating to this, we determine that you, Mr Director, clarify whether the news is true, and, if confirmed its veracity, shall explain the reasons that understood not to be relevant fact, as well comment about other information deemed important, especially as the results of any internal and contracted investigations by the issuer on the subject.

 

3.      This answer should take place through the Empresa.NET System category: Notice to the Market, type: Clarifications Inquiries CVM/BOVESPA, subject: Disclosed in the news media, which should include a transcript of this Official Letter.

 

4.      We should emphasize that by art. 3 of CVM Instruction 358/02, meets the Investor Relations disclose and communicate to CVM and, if applicable, the stock exchange and entity of the organized OTC market in which the securities issued by the company are admitted the negotiation, any act or fact occurred or related to their business and ensure its wide and immediate dissemination, simultaneously in all markets where such securities are admitted to trading.

 

5.      We warn that the order of the Superintendence of Corporate Relations, in exercise of its legal powers and on the basis of section II of Article 9 of Law 6,385/76 and CVM Instruction No. 452/07, it will be the determined the application of fine in the amount of R$ 1,000.00 (one thousand reais), without prejudice to other administrative sanctions for non-compliance with the requirement contained in this notice within 1 (one) business day from the date of knowledge of content of this expedient, sent exclusively by e-mail, despite the provisions of the sole paragraph of art. 6 of CVM Instruction 358/02. “

 

 

 

 

 

 

CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
By:	/S/ Armando Casado de Araujo
	Armando Casado de Araujo Chief Financial and Investor Relation Officer