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Five insane ways EU money was blown in Italy

Patrick Browne · 5 Jun 2015, 06:59

Published: 05 Jun 2015 06:59 GMT+02:00

According to statistics released by Olaf, the EU anti-fraud office, Italy currently has 61 open investigations into fraud involving EU funds. This means Italy has the second highest number of investigations in the EU, ranking just below Bulgaria.

This is largely down to the fact that Italy poses a unique challenge when combating fraud, thanks to its byzantine legal system and the level of mafia infiltration among public offices.

Fraud with EU money is commonplace in Italy, but is far from an Italian-only phenomenon. Here is a list of some of the most dastardly cons pulled by Italians with EU money.

1) Digitaleco`s dodgy DVDs

From 1998 to 2005 a fake company known as Digitaleco received over €3 million in EU funding to produce DVDs. However, by 2005 the company plant was still missing a roof and was not connected to a waste system. Still, it had mysteriously been certified as completed by regional officials in Calabria.

Strangely, regional authorities in Calabria made no attempts to recoup the money and subsequent raids across the country implicated a former public official in Calabria, the treasurer of the Catholic UDC party and a fundraiser for Silvio Berlusoni's Forza Italia party in the scandal...

2) A lift to nowhere

Over €2 million of EU taxpayers hard-earned cash was used to build a lift in the small Italian town of Sutera, Sicily. The lift was finished in 2012, but has never been used as the costs of running the lift were too expensive for the small town.

Now it is feared that much of the budget may have ended up lining the pockets of local mafiosi...

3) Clean electricity? Clean money!

Italy's poorer south is a prime target for EU development funds: unfortunately it is also the nerve centre of the global mafia. Between 2007 and– 2013 the EU structural fund granted €350 million to Sicily - money local mafia were looking to get a slice of.

A wind Turbine - Molgreen

Vito Nicastri used some of these funds to build up a huge empire of renewable energy on Sicily that was used as a front for the Mafia, which is suspected to have used green businesses to launder illegally earned money.

Nicastri had over €1.2 billion euros worth of assets seized by anti-mafia police in April 2014.

4) Crime Doesn't Pay

It's not always the case that EU funds disappear in Italy - at least not forever. In 2012, Italy was ordered to repay the EU a whopping €420 million after anti-fraud investigators found evidence of foul play in the way EU funds had been used to rebuild the A3 Motorway between Salerno and Reggio Calabria.

Sixty years in the making, The A3 - Salvatore Migliari

The A3 is symbolic of the challenges Italy faces in its war on corruption. The project has been dogged by repeated scandals. In May this year, Italian Premier Matteo Renzi declared that the motorway would be finished within a year. Construction began in 1966 - so watch this space!

5) Rocket Man goes to Napoli

 
But that's not the only time the EU has asked Italy for a refund. In 2009 the regional of Naples was forced to pony up the EU dough it had spent on an Elton John concert.
 
Following a Brussels led investigation, Naples was ordered to repay the 720,000 of the regional development fund it had splashed out on the gig. 
 
 
Elton John in concert - Andrew H. Walker AFP
 
EU officials stated that the money should have been used for longer term cultural projects.
 
When It comes to Italy and EU money, sorry often seems to be the hardest word.

For more news from Italy, join us on Facebook and Twitter.

Patrick Browne (patrick.browne@thelocal.com)

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