December 20, 2016 / 8:08 PM / in 2 years

Former Rio governor, ThyssenKrupp unit face impropriety charges

RIO DE JANEIRO, Dec 20 (Reuters) - Rio de Janeiro state prosecutors filed a lawsuit against former state governor Sérgio Cabral, two of his former secretaries and ThyssenKrupp AG’s steelmaker Companhia Siderúrgica do Atlântico SA for administrative impropriety over the granting of an operations license.

Cabral, currently in jail on unrelated corruption charges , and his former secretaries may have to pay fines and be barred from public office for eight years if they lose the suit, according to a statement from prosecutors.

State prosecutors say the steelmaker was granted a temporary environmental license to begin operations in 2010, although the state’s environmental body had opposed this. At the same time, the steelmaker received tax breaks from the state.

If it loses the suit, the steelmaker may be barred from winning new public contracts in the state until it has paid for environmental damage. CSA, as the company is known, could also be barred for five years from receiving tax breaks in the state.

CSA did not immediately respond to requests for comment, nor did lawyers for Cabral. (Reporting by Rodrigo Viga Gaier; Writing by Tatiana Bautzer; Editing by Frances Kerry)

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