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Mafia link to Sicily wind farms probed
By Guy Dinmore in Palermo, Italy
Published: May 4 2009 19:01 | Last updated: May 5 2009 07:13
Anti-Mafia magistrates in Sicily have opened a sweeping investigation
into the wind power sector where local officials, entrepreneurs
and crime gangs are suspected of collusion in the construction
of lucrative wind farms before their eventual sale to multinational
companies.
Italian and EU subsidies for the building of wind farms and the
world's highest guaranteed rates, €180 ($240, £160)
per kwh, for the electricity they produce have turned southern
Italy into a highly attractive market exploited by organised crime.
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Roberto Scarpinato, a veteran anti-Mafia prosecutor in the regional
capital Palermo, told the Financial Times that his investigation,
which began last week, was focused on the three large provinces
of Palermo, Trapani and Agrigento.
An earlier investigation into a case near Trapani in western Sicily
resulted in eight arrests in February, leading to accusations
of a suspected nexus between a leading Mafia family that offered
money and votes in exchange for permits to construct wind farms.
"Operation Wind" revealed Mafia promises to local officials
in Mazara del Vallo of money and votes in exchange for help in
approving wind farm projects.
The Mafia suspects were alleged to be linked to Matteo Messina
"Diabolik" Denaro, a fugitive clan boss on ltaly's most
wanted list.
Prosecutors suspect the hand of the Mafia in fixing permits and
building wind farms that are then sold on to Italian and eventually
foreign companies.
In an effort to assert its control over the sector, the Mafia
is suspected of destroying two wind towers that were in storage
in the port of Trapani after their delivery by ship from northern
Europe, local officials told the FT.
"It is a refined system of connections to business and politicians.
A handful of people control the wind sector. Many companies exist
but it is the same people behind them," said Mr Scarpinato,
whose investigations have focused on the evolution of the Mafia
into a modern business organisation.
Sicily's Cosa Nostrais evolving and finding new business opportunities,
including the renewable energy sector, by exploiting its historic
grip over territory, construction and ability to corrupt local
officials.
Several wind farms built by companies suspected of being linked
to the Mafia have not functioned for one or two years, in some
cases because of shoddy construction. "This is the amazing
thing, that developers got public money to build wind farms which
did not produce electricity," the prosecutor said.
The regional governments in Sicily, as well as Calabria and Basilicata
on the mainland, have suspended the authorisation of new wind
farms in part because of suspected criminal involvement and confusion
over the real ownership of the ventures.
Most, if not all, of Sicily's wind farms began as projects by
local developers, some of whom speculated in a secondary market
for permits. Once built, the majority were sold on through Italian
intermediaries to multinationals. International Power of the UK
is the largest wind power operator in Italy. Others include Italy's
Enel and Germany's Eon through its purchase of part of Endesa
of Spain in 2007. France's EDF also has assets. While the international
companies knew the identity of their Sicilian developers, there
is no evidence they were aware of Mafia involvement.
Although Italy is lagging badly in meeting its EU 2020 emissions
targets, the renewable energy sector is growing strongly and attracting
considerable foreign investment. International Power became the
single largest operator in 2007 with its purchase of the Maestrale
portfolio of mostly Italian wind farms, including five in Sicily,
for €1.8bn
Italy ranks fourth in Europe in terms of installed wind power
capacity.
Copyright The Financial Times Limited 2009
