The Rio De Janerio based Utility Eletrobras (EBR) doesn’t have enough information about its own internal corruption and its effect on financial statements. The company which is also Brazilian state owned states that it is unable to file financial report of 2014.

NYSE on Wednesday suspended the Utility Brass from trading on its stock exchange after company stated that it would not file financial report pertaining to year 2014. NYSE also started to delisting procedure related to company ADR’s. Report says that it has already delayed financial report by three times stating the internal investigations reasons behind it.

The situation creates uncertainty over company’s future prospects and its ability to raise money in US markets. It will make harder for other Brazilian company in future to raise money in US market as Utility Brass has tarnished the image of the company as well as other prospective bidders from Brazil. The company is under risk to face cases against it by the investors in future. However, company already has two suits against it by the investors which are related to internal corruption.

Brazil government feels the pressure from delisting procedure started by the NYSE as Brazilian government has to buy all ADR’s and US investors will exit as soon as they can. Brazilian government says, ‘’It will put pressure on our treasury and we are pursuing the Utility Brass to complete the investigation as soon as they can.”

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The Brazilian firm WFaria Advogados and international firm Hogan Lovells was hired by Utility last year are still under confusion whether write offs are necessary or not. Questions arise as why internal investigation is still not completed over long period of time. It also raises questions over what kind of audit it needs to be done to ascertain cost of corruption on company’s financials. However, final answers can only be provided by the ongoing auditors and investigators.

Folha de S. Paulo energy minister of Brazil says, “The government isn’t discussing to replace the management of the company.”  This can clear some air over the issue.  Finance Minister Henrique Meirelles Wednesday said to correspondent that we have to analyze the Utility’s capitalization. But it seems to be far from late now.

This is a yet another blow to Brazilian company’s reputation after Petrobas play to pay scheme was uncovered last year by federal investigators, involving $2.1 billion cost of corruption by country’s  biggest  builders, politicians and public work contractors.

The share prices of the company lose as much as 6.7 percent in Sao Paulo stock exchange on Wednesday. Eletrobras bonds also loses 1 cent to 96.7 cents on the dollar which are due in 2019. Bonds also suffered losses on Tuesday of 2.4 percent.

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The spoke person of the Utility Eletrobras said that company was expecting suspending of trading by NYSE of company’s U.S. – traded American depository receipts. The spokes person also stated that company would be appealing to the decision of the NYSE and it plans to continue on delayed projects and finish as soon as they can. ADR’s worth only one ordinary share started trading on which are not prestigious and over the counter market, company has admitted.