Eletrobras reports that it has hired US law firm Hogan Lovells to investigate possible violations of domestic and international graft laws in its contracts.
The publicly listed Eletrobras warned the US Securities and Exchange Commission that it would have to delay its form 20-F, or annual report, for 2014 after allegations emerged that the chief executive of a subsidiary, Eletronuclear, had taken bribes from construction companies investigated on the Petrobras scandal.
Nothing surprising here, the majority of Brazilians feel that government interference in state owned companies should be investigated for corruption.
Furthermore, minority shareholders allege attempts by the federal government in 2012 and 2013 to control energy prices to suppress inflation have led to massive losses at Eletrobras, Petrobras and other state-owned enterprises.
Petrobras investigations are just the tip of the corruption scandal iceberg. Eletrobras and other government owned companies and corresponding pension funds, might reveal the size of the iceberg if investigations continue.
More to come, I am sure.
Brazil Energy Insight 
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