US embassy cable - 03ROME1809

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Identifier:	03ROME1809
Wikileaks:	View 03ROME1809 at Wikileaks.org
Origin:	Embassy Rome
Created:	2003-04-30 07:20:00
Classification:	UNCLASSIFIED//FOR OFFICIAL USE ONLY
Tags:	ETRD PGOV IT OECD
Redacted:	This cable was not redacted by Wikileaks.

UNCLAS ROME 001809 
 
SIPDIS 
 
 
SENSITIVE 
 
COMMERCE FOR TBARLOW; JUSTICE FOR ELEWIS, AARONOFF; 
TREASURY FOR PCLARK 
 
    E.O. 12958: N/A 
TAGS: ETRD, PGOV, IT, OECD 
SUBJECT: ITALY: UPDATE ON OECD ANTI-BRIBERY CONVENTION 
 
REF: SECSTATE 79413 
 
1.  (U) THE FOLLOWING IS POST'S SUBMISSION FOR THE 2003 
REPORT ON THE IMPLEMENTATION OF THE OECD ANTI-BRIBERY 
CONVENTION. 
 
-------------- 
A. ENFORCEMENT 
-------------- 
 
2. (SBU) TRANSPARENCY INTERNATIONAL (TI) TOLD CONSULATE MILAN 
THAT ITALIAN LAW ENFORCEMENT OFFICIALS ARE INVESTIGATING 
ITALIAN ENERGY COMPANY, ENEL, FOR PURPORTED BRIBING OF 
FOREIGN GOVERNMENT OFFICIALS IN THE MIDDLE EAST. ACCORDING TO 
MEDIA REPORTS, THOSE COUNTRIES ARE OMAN, QATAR AND THE UNITED 
ARAB EMIRATES.  ENEL OFFICIALS CONFIRMED TO US THAT THE MILAN 
PROCURA (DISTRICT ATTORNEY) IS INVESTIGATING THE ENEL 
SUBSIDIARY, ENEL POWER, FOR ALLEGED BRIBES FOR A CONTRACT IN 
THE MIDDLE EAST.  THE INVESTIGATION IS IN ITS PRELIMINARY 
PHASE AND INVOLVES PREVIOUS ENEL POWER MANAGEMENT.  TI 
CONSIDERS THIS INVESTIGATION, THE FIRST OF ITS KIND IN ITALY, 
A SIGNIFICANT AND POSITIVE DEVELOPMENT. 
 
3. (U) THE GOI IS STILL INVESTIGATING THE TELEKOM SERBIA 
CASE, WHICH DATES BACK TO 1997.  ACCORDING TO PRESS REPORTS, 
STET (NOW TELECOM ITALIA AFTER ITS PRIVATIZATION) AND A GREEK 
COMPANY BOUGHT 49 PERCENT OF TELEKOM SERBIA, WITH STET'S 
    SHARE (29 PERCENT) EQUAL TO ROUGHLY USD 500 MILLION.  THE 
PRESS HAS ALLEGED THAT MILOSEVIC USED THESE FUNDS TO PAY 
SALARIES AND PENSIONS, WHEN ALL OTHER FINANCING WAS CLOSED TO 
HIM AND HIS REGIME, AND TO FINANCE HIS 1997 RE-ELECTION 
CAMPAIGN. FURTHER, ACCORDING TO THE MEDIA, PART OF THE MONEY 
WAS DEPOSITED INTO BANK ACCOUNTS IN THE U.K., AS A KICKBACK 
TO INTERMEDIARIES.  THERE WERE ALSO ALLEGATIONS THAT THEN 
ITALIAN FOREIGN MINISTER DINI AND HIS FAMILY PROFITED 
PERSONALLY FROM THE DEAL.  THE CASE REMAINS OPEN, BUT NO 
EVIDENCE OF WRONG-DOING HAS SURFACED. 
 
------------------------------------- 
B. DEFECTIVE IMPLEMENTING LEGISLATION 
------------------------------------- 
 
4. (U) ITALY DOES NOT PROVIDE FINANCIAL PENALTIES FOR PERSONS 
CONVICTED OF BRIBERY OFFENSES. THE ANTI-BRIBERY CONVENTION 
RECOMMENDS SUCH PENALTIES BUT DOES NOT REQUIRE THEM. 
 
----------------------------- 
C. PROMOTING PUBLIC AWARENESS 
----------------------------- 
 
5. (U) TRANSPARENCY INTERNATIONAL HAS PRAISED THE GOI'S 
EFFORTS IN PROMOTING PUBLIC AWARENESS ABOUT THE ANTI-BRIBERY 
CONVENTION AND ANTI-CORRUPTION EFFORTS IN GENERAL.  GOI 
OFFICIALS OFTEN TAKE PART IN TI EVENTS AND SEMINARS.  TI HAS 
SINGLED OUT LABOR MINISTER MARONI FOR HIS LEADERSHIP ON 
ANTI-CORRUPTION EFFORTS. THE MINISTRY OF FOREIGN AFFAIRS IS 
PROMOTING AWARENESS BY ISSUING INSTRUCTIONS TO ITALIAN 
EMBASSIES AND CONSULATES TO INFORM ITALIAN BUSINESSES 
    OVERSEAS ABOUT THE OECD ANTI-BRIBERY CONVENTION. 
 
6. (U) CONFINDUSTRIA, ITALY'S LARGEST BUSINESS ASSOCIATION, 
HAS BEEN A FREQUENT PARTICIPANT IN TI EVENTS AND SEMINARS. 
IN 2001, CONFINDUSTRIA UPDATED ITS CODE OF ETHICS, FIRST 
PROMULGATED IN 1991, TO REFLECT THE PRINCIPLES STATED IN THE 
OECD'S ANTI-BRIBERY CONVENTION. 
 
END CABLE TEXT 
 
KATHLEEN DOHERTY  04/22/2003 10:28:51 AM  FROM  DB/INBOX: 
KATHLEEN DOHERTY 
 
SEMBLER 
 
NNNN 
 2003ROME01809 - Classification: UNCLASSIFIED