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CRIME

Police bust mafia pocketing income support meant for Italy’s poor

More than 100 mobsters have embezzled state funds destined for Italy's poorest, Italian police said on Wednesday.

All 101 belonged to the 'Ndrangheta in Calabria, and included wealthy gangsters with close ties to bosses or with key roles within the organised crime group, a statement said.

Alessandro Pannunzi, the son of a man dubbed Italy's version of Colombian drug lord Pablo Escobar, was among those cashing in.

His father Roberto was “unanimously considered by Italian and American investigators to be one of the world's most important cocaine brokers, and who boasted that he did not count his money, but weighed it”, police said.

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Alessandro's wife is the daughter of “one of the main Colombian cocaine producers,” it added.

Each mobster will have to pay back their share of the 516,000 euros ($566,000) stolen from the state, police said.

The wealthy mobsters had submitted claims for income support under false identities, Italian media reports said, and police were investigating whether those tasked with inspecting them may have had ties to the criminal underworld.

The poverty relief scheme known as the reddito di cittadinza, or “citizens' income”, is intended for the five million Italians living below the poverty line.

The 'Ndrangheta, which takes its name from the ancient Greek word for “courage”, is generally believed to have outgrown its Sicilian and Neapolitan competitors thanks to cocaine trafficking from Latin America.

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Its stronghold is Calabria in Italy's south, but it has become increasingly powerful in northern Italy and abroad too. Mafia experts say it is the only organised crime group present on every continent.

The income support sting came as warnings abounded in Italy over risks the mafia could flourish during the deep economic recession caused by its economically devastating national lockdown.

Experts warn usury is already on the rise and crime groups will also be looking to feast on public aid meant for suffering businesses.

 

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CRIME

Italy has most recovery fund fraud cases in EU, report finds

Italy is conducting more investigations into alleged fraud of funds from the EU post-Covid fund and has higher estimated losses than any other country, the European Public Prosecutor's Office (EPPO) said.

Italy has most recovery fund fraud cases in EU, report finds

The EPPO reportedly placed Italy under special surveillance measures following findings that 179 out of a total of 206 investigations into alleged fraud of funds through the NextGenerationEU programme were in Italy, news agency Ansa reported.

Overall, Italy also had the highest amount of estimated damage to the EU budget related to active investigations into alleged fraud and financial wrongdoing of all types, the EPPO said in its annual report published on Friday.

The findings were published after a major international police investigation into fraud of EU recovery funds on Thursday, in which police seized 600 million euros’ worth of assets, including luxury villas and supercars, in northern Italy.

The European Union’s Recovery and Resilience Facility, established to help countries bounce back from the economic blow dealt by the Covid pandemic, is worth more than 800 billion euros, financed in large part through common EU borrowing.

READ ALSO: ‘It would be a disaster’: Is Italy at risk of losing EU recovery funds?

Italy has been the largest beneficiary, awarded 194.4 billion euros through a combination of grants and loans – but there have long been warnings from law enforcement that Covid recovery funding would be targeted by organised crime groups.

2023 was reportedly the first year in which EU financial bodies had conducted audits into the use of funds under the NextGenerationEU program, of which the Recovery Fund is part.

The EPPO said that there were a total of 618 active investigations into alleged fraud cases in Italy at the end of 2023, worth 7.38 billion euros, including 5.22 billion euros from VAT fraud alone.

At the end of 2023, the EPPO had a total of 1,927 investigations open, with an overall estimated damage to the EU budget of 19.2 billion euros.

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