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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 to inform its shareholders and the market in general of having received on September 26, 2016, Official Letter No. 459/2016-CVM/SEP/GEA-1 from the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - "CVM"), requesting clarification regarding news published by "Época" under the title: "Fiscal do fiscal”, as transcribed at the end of this Announcement.

 

In addressing the above-mentioned Official Letter, the Company herein clarifies that Mrs. Ellen Grace, former justice of the Brazilian Supreme Court Court- STF, was hired by Eletrobras, through the Ellen Grace Advogados Associados law firm, in accordance with Law 8,666/93, to join the Independent Investigation Committee - CIGI, whose purpose is to ensure that the internal investigation undertaken by American law firm, Hogan Lovells, is carried out independently, free of influence from Management, and with the completeness required for compliance with the US anti-corruption law, the Foreing Corrupt Practice Act - FCPA, to which Eletrobras is subject for having shares traded in that market.

 

It is important to emphasize that, in addition to Mrs. Ellen Grace, CIGI membership also includes, Mr. Durval Soledade, former Director of the Brazilian Securities and Exchange Commission - CVM and Mr. Manoel Jeremias, as a representative of minority shareholders. Therefore, making the entity a collegiate body, as required by the above legislation.

 

We also emphasize that this hiring has already been the subject of several market announcements and relevant facts, as well as stated in the Company reports disclosed to the market, including the CVM Reference Form (Formulário de Referência), so that no relevant new facts, not already disclosed by Company through the appropriate channels, exists.

 

The Company will keep the market informed on the progress of the subject matter reported in this market announcement.

 

 

 

Rio de Janeiro, September 27, 2016.

 

Armando Casado de Araujo

CFO and Investor Relations Officer

 

 

 

 

 

 

 

 

 [Free Translation Officlal Letter nº 459/2016-CVM/SEP/GEA-1]

 

“Subject: Clarification request about News

 

Dear Director,

 

1.            In reference to the article published on September 24, 2016 in Época magazine, Expresso section, under heading "Fiscal do Fiscal", containing the following statements:

 

The law firm of former justice of the Brazilian Supreme Court Court, Ellen Gracie, has been hired by Eletrobras without a tender process, for fees in excess of BRL 700 thousand, to oversee the audit carried out by American Law firm Hogan Lovells. Eletrobras is involved in ‘eletrolão’ and has shares traded on the New York Stock Exchange.

 

2.             In view of the above, we hereby require that you clarify whether the news is true, and, if this is confirmed, explain the reasons that led to establishing it as a fact without relevance, as well as comment on any other related information deemed important.

 

3.            This answer should be provided through the Empresa.NET System category: Notice to the Market, type: Clarification of CVM/BOVESPA Inquiries, subject: News disclosed in the press, and should include a transcript of this Official Letter.

 

4.            We hereby advise that, on instruction from the Superintendence of Corporate Relations, in the delivery of its legal duties and pursuant to section II of Article 9 of Law 6,385/76 and CVM Instruction No. 452/07, a fine for the amount of R$ 1,000.00 (one thousand reais) will be levied, without no impairment to other administrative sanctions for non-compliance with the requirement contained in this notice, sent exclusively by e-mail, before 9 a.m. of 27 September 2016, despite the provisions of the single paragraph of art. 6 of CVM Instruction 358/02. “