Eletrobras employees prepare a new complaint to the SEC against privatization

In an offensive to try to stop the privatization of Eletrobras, entities linked to employees of the state-owned company are preparing a new complaint to the SEC, the US stock market regulator, questioning the operation’s premises.

In a first complaint, already delivered, they accuse Eletrobras of omitting risks with the crisis at the Santo Antônio plant. Now, they question the values ​​stipulated for the Belo Monte and Itaipu plants and for Eletronuclear, which operates the Angra dos Reis nuclear power plant.

AEEL (Association of Employees of Eletrobras), ASEF (Association of Employees of Furnas) and CNE (Coletivo Nacional dos Eletricitários) promise to deliver the new complaint to the SEC next Tuesday (24).

The Eletrobras privatization process is being evaluated by the TCU (Union Court of Auditors) this Wednesday (18). If approved, the government hopes to be able to carry out the operation in the second quarter.

The associations accuse the government of withholding information to “privatize the company at any cost”. “To fulfill an absolutely ideological agenda, there is a suspicion that important data and figures about the company’s real losses were withheld from shareholders”, they say.

With regard to Belo Monte, the largest 100% Brazilian plant, the associations claim that the appraisal of the asset by Eletronorte ruled out an independent audit opinion contesting the price that the company will have to pay for the plant.

“According to the opinion, Belo Monte is over-appreciated, making possible damages to Eletronorte’s collection, and consequently, to Eletrobras”, he says.

In the case of Itaipu, they question the Paraguayan government’s lack of pronouncement on the value of the plant. “While Brazil says Itaipu is worth more than one billion reais, the Paraguayan government has not commented on the case, creating uncertainty for investors and shareholders.”

At Eletronuclear, the associations question the model of transfer of control to ENBPar, a state-owned company planned to manage the nuclear assets and the Brazilian participation in Itaipu. Eletrobras, they say, should be compensated by the new controller, but waived the preemptive right for the shares.

“AEEL, ASEF and CNE also inform that they are taking all appropriate measures so that those responsible for possible accounting omissions are held accountable by both Brazilian and US authorities”, say the entities.

“As Eletrobras trades securities on the New York Stock Exchange, the SEC has the competence and jurisdiction to take the appropriate measures in the case, which may include fines to the directors and possible legal proceedings arising from the investigation”, they reinforce.

The government is counting on the privatization of Eletrobras to demonstrate that an important part of the privatization program has been carried out, especially among voters linked to the financial market, whose spirits have cooled in recent months.

In an interview this Tuesday (17), the president of the state-owned company, Rodrigo Limp, defended that the privatization of the company be carried out “in the shortest possible time”, to avoid the risk of loss of value with the holidays in the Northern Hemisphere and the proximity to the elections. presidential elections in Brazil.