Probe into Telecom Italia Bribery Allegations

The science and technology committee of Brazil's lower house is deliberating how to conduct an investigation into allegations of bribery on the part of Telecom Italia four years ago, Brazilian press reported.

The allegations came to light in a recent edition of Italian magazine Panorama, which said TI executive Giuliano Tavaroli confessed to judge Giuseppe Gennari that the company paid "tips" to members of the lower house's science and technology committee.

According to the reports, Tavaroli told the magazine that Telecom Italia sent US$300,000 to Brazil in April 2003 and used it to pay off several politicians. Panorama did not name any of the politicians.

At the time Telecom Italia's mobile unit TIM operated six mobile service providers in Brazil and the group was in the spotlight because of Telecom Italia's influence in Brasil Telecom (BrT), which was itself lining up to launch mobile operations. TI was eventually forced to hire Credit Suisse to manage its 38% stake in BrT parent company Solpart, a trust arrangement struck in October 2006.

One of the committee members pushing for the investigation is Julio Semeghini, who has been on the science and technology committee for nine years. "It is up to the committee to clear its name. At the very least we must subpoena individuals, conduct hearings and gather information about what may have happened," he said.

The committee will discuss the matter on Tuesday, including the issue of whether to insist on access to any documentation that the Italian authorities have in order to identify the politicians involved.

Posted to the site on 6th November 2007