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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.

Published: 8 April 2024 17:05 CEST
Italy has most recovery fund fraud cases in EU, report finds
Italian financial police (Guardia di Finanza) officers stand guard outside a courthouse. (Photo by Piero CRUCIATTI / AFP)

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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POLITICS

Italy’s Liguria regional president arrested in corruption probe

The president of Italy's northwest Liguria region and the ex-head of Genoa's port were among 10 arrested on Tuesday in a sweeping anti-corruption investigation which also targeted officials for alleged mafia ties.

Published: 7 May 2024 12:52 CEST
Italy's Liguria regional president arrested in corruption probe

Liguria President Giovanni Toti, a right-wing former MEP who was close to late prime minister Silvio Berlusconi but is no longer party aligned, was placed under house arrest, Genoa prosecutors said in a statement.

The 55-year-old is accused of having accepted 74,100 euros in funds for his election campaign between December 2021 and March 2023 from prominent local businessmen, Aldo Spinelli and his son Roberto Spinelli, in return for various favours.

These allegedly included seeking to privatise a public beach and speeding up the renewal for 30 years of the lease of a Genoa port terminal to a Spinelli family-controlled company, which was approved in December 2021.

A total of 10 people were targeted in the probe, also including Paolo Emilio Signorini, who stepped down last year as head of the Genoa Port Authority, one of the largest in Italy. He was being held in jail on Tuesday.

He is accused of having accepted from Aldo Spinelli benefits including cash, 22 stays in a luxury hotel in Monte Carlo – complete with casino chips, massages and beauty treatments – and luxury items including a 7,200-euro Cartier bracelet.

The ex-port boss, who went on to lead energy group Iren, was also promised a 300,000-euro-a-year job when his tenure expires, prosecutors said.

In return, Signorini was said to have granted Aldo Spinelli favours including also working to speed up the renewal of the family’s port concession.

The Spinellis are themselves accused of corruption, with Aldo – an ex-president of the Genoa and Livorno football clubs – placed under house arrest and his son Roberto temporarily banned from conducting business dealings.

In a separate strand of the investigation, Toti’s chief of staff, Matteo Cozzani, was placed under house arrest accused of “electoral corruption” which facilitated the activities of Sicily’s Cosa Nostra Mafia.

As regional coordinator during local elections in 2020, he was accused of promising jobs and public housing in return for the votes of at least 400 Sicilian residents of Genoa.

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