Brazil’s Eletrobras under investigation for potential fraud

The logo of Brazil's power company Eletrobras is seen in Rio de Janeiro, Brazil

Brazilian prosecutors and the federal police launched an investigation of potential fraud at the Eletronuclear subsidiary of Centrais Eletricas Brasileiras SA (ELET6.SA), according to statements on Thursday.

The police are executing 18 search and seize warrants and 12 prison orders in Rio de Janeiro, Sao Paulo and in the federal district, related to potential fraud, in a new phase of the Car Wash corruption investigation.

The fraud scheme caused a loss of 208 million reais ($38.82 million) to the company, according to prosecutors.

The subsidiary Eletronuclear holds nuclear power plants.

Eletrobras, as the holding is known, said in a securities filing that it was first informed about the probe by media stories and that it will keep investors informed about new developments.

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