Brazil Utility to Submit Delayed Financial Reports by Oct. 11

Updated on
  • Eletrobras investigating corruption at six Brazil power plants
  • Trading in U.S. halted in May as 2014 results delayed

Brazil’s state-owned utility Eletrobras will submit its long-delayed 2014 financial results to U.S. regulators by Oct. 11.

Centrais Eletricas Brasileiras SA, as the utility is formally known, expects U.S. authorities to evaluate by Oct. 13 the New York Stock Exchange’s May decision to delist the company, Chief Executive Officer Wilson Ferreira said at an event in Sao Paulo.

A team of lawyers and accountants hired by Eletrobras is expected to conclude in the next few days the first phase of an investigation into power projects across Brazil, according to a person with knowledge of the matter, who asked not to be identified because the information is private. A key goal is putting a pricetag on corruption, which will be included in the Rio de Janeiro-based company’s annual report.

Eletrobras has delayed filing its 2014 financial results to the U.S. Securities and Exchange Commission three times amid the investigation. The New York Stock Exchange suspended U.S. trading of the ADRs in May and began delisting procedures.

Eletrobras appealed the delisting, and the SEC is planning to evaluate the decision.

The utility’s auditor KPMG LLP has refused to sign off on its U.S. financial statements while specialists led by the international law firm Hogan Lovells and the Brazilian firm WFaria Advogados probe alleged fraud at six projects, the person said. The allegations emerged in plea-bargain agreements with executives from building companies who were implicated in the country’s sweeping Carwash investigation into corruption.

The team evaluated the Eletronuclear power plant and the Belo Monte, Jirau, Sao Manoel, Maua and Simplicio hydroelectric dams. Spokesmen for Eletrobras didn’t reply to requests for comment Thursday.

Eletrobras has put aside provisions to cover any losses the corruption probe may identify, Energy Minister Fernando Bezerra Coelho Filho told reporters in August.