NAPLES, Italy, March 24 Italian police arrested
two former executives at state-controlled industrial group
Finmeccanica SpA on Monday in an investigation
relating to a waste tracking system project.
The arrests stem from an investigation by Naples prosecutors
into the "Sistri" system devised to electronically trace the
transportation and disposal of industrial and agricultural
waste, some of which is toxic.
Finmeccanica electronics unit Selex Service Management won
the 400 million euro ($551 million) contract to design, manage
and maintain Sistri in December 2009. The nationwide system has
suffered delays and has not yet become fully operational.
In a statement, police said Lorenzo Borgogni, former head of
Finmeccanica's external relations, Stefano Carlini, a former
director of Selex Service Management, and two other Italian
executives had been placed under house arrest.
They are accused of alleged criminal association and
corruption, police said in a statement on Monday.
It was not immediately possible to get a comment from their
lawyers. Finmeccanica, which underwent a management reshuffle in
February 2013, declined to comment.
The probe has looked into allegations that bribes were paid.
"The investigation has shown that large slush funds were
created through a complex system of false invoicing between
Selex Service Management and several complicitous firms," the
police statement said.
"According to the investigating magistrates, (the funds)
were set up with the purpose of paying bribes, also through the
creation of foreign companies in tax havens such as Delaware and
the setting up of (secret) accounts in Switzerland".
As part of the investigation, Italy's police in April
arrested other people including Sabatino Stornelli, former CEO
of Selex Service Management, accused of crimes such as criminal
association, false invoicing and corruption.
At the time of the April arrests, investigative sources said
the false invoicing totalled 40 million euros.
In its annual report published last week, Finmeccanica said
a trial against Stornelli had started and that the group had
filed a civil action for damages against certain suppliers and
sub-suppliers over Sistri.
($1 = 0.7255 Euros)
(Reporting by Roberto Landucci and Danilo Masoni; Editing by