Tuesday, January 10, 2012

Monti govt faces 1st scandal, minister quits (AP)

ROME ? Italian Premier Mario Monti's new government suffered its first ethics casualty Tuesday with the resignation of a top official who allegedly received complimentary vacations at an exclusive Tuscan resort.

Carlo Malinconico, Monti's undersecretary, quit Tuesday although he insisted he did nothing wrong.

Italian media have reported that a businessman under investigation for alleged corruption in a public contracts case paid at least part of the euro19,876 (over $25,000) bill for Malinconico's summer weekend getaways in 2007 and 2008 at the five-star Il Pellicano resort on the Tuscan coast.

Il Pellicano, located in Porto Ercole, is one of Italy's most exclusive resorts, with high season rooms this year ranging from euro630 to euro2,500 ($800 to $3,200) a night.

Monti's government came into office in November pledging transparency and rigor to help rescue Italy from financial disaster, imposing tough austerity measures that include higher taxes and pension cuts.

Monti, a well-respected economist and former European commissioner, insisted that his government of technocrats be free of any conflicts of interest or other impediments as they demand financial sacrifices from ordinary Italians.

The Malinconico case represented this government's first hint of scandal, and Monti dispatched with it quickly, accepting Malinconico's resignation after meeting with him Tuesday.

In a statement, Monti thanked Malinconico for his "sense of responsibility in putting the public interest before any other consideration." The statement noted that Malinconico says he had acted properly.

At the time of the resort stays, Malinconico was the secretary general in Romano Prodi's center-left government.

In a statement Monday, Malinconico said he had asked an acquaintance, Angelo Balducci, for help in securing high-season reservations at Il Pellicano and only found out later that he had also paid the bill.

Balducci at the time was the well-regarded president of a public works commission, but he has since been embroiled in a corruption scandal over contracts for the 2009 Group of Eight summit in L'Aquila. r

News reports citing telephone wiretaps have recently said a businessman also under investigation in the G8 case actually gave Balducci the cash to pay the Malinconico bill.

In his statement, Malinconico insisted he had never done any favors for either Balducci or the businessman, Francesco Maria De Vito Piscicelli. He said he had tried to pay but the hotel told him the bill was already paid. He said he only found out recently that Piscicelli had made the payment.

The high-end vacations that are a staple of Italy's political elite have come under fire recently amid suggestions the politicians are either getting things for free or are simply earning far more than a public servant should in times of financial crisis.

Source: http://us.rd.yahoo.com/dailynews/rss/business/*http%3A//news.yahoo.com/s/ap/20120110/ap_on_bi_ge/eu_italy_financial_crisis

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