Italy Prosecutors Accuse Telecom Italia of Corruption in Spy Case

ROME (AFP)--Italian prosecutors have accused two of the country's top firms, Telecom Italia and its former leading shareholder, Pirelli of lack of oversight in connection with a huge spying scandal, the companies confirmed Saturday.

Some 34 suspects have been targeted by Milan prosecutors following inquiries launched two years ago into an extensive wire-tapping system, according to the ANSA news agency.

They include a former head of security at the two firms, Giuliano Tavaroli, but not former Telecom Italia boss Marco Tronchetti Provera, as the prosecutor did not believe there was evidence that he knew about the spying, the Corriere della Sera daily said.

The phone-tapping scandal broke in 2006 after investigators uncovered a vast private spy network at the heart of Telecom Italia.

More than 20 people have been implicated in the affair, in which hundreds of files, including those relating to top magistrates, industrialists, politicians and even soccer players and referees were compiled through phone taps.

Those arrested, including 11 members of the financial police and the paramilitary Carabinieri police force, have been accused of corruption and illegally obtaining bank and phone records.

According to ANSA, the two companies were informed of the investigation's findings late Friday after the closure of the stock exchange.

The firms could face a maximum fine of EUR1.5 million, according to La Repubblica and Corriere della Sera.

Pirelli, in a statement on Saturday evening, confirmed having received notification.

The firm said it would be a "civil party" against the other suspects, stressing that it was the "injured party" in the case.

Telecom Italia put out a similar statement confirming the accusation, but pointing to the "serious damage" suffered by the company because of the scandal.

(END) Dow Jones Newswires

Posted to the site on 19th July 2008