Author: Sandra Grabmeier
Committee: Investigation and Activities Committee
Date: 22/11/2024
On October 15, Italian tax police carried out searches under the directive of the European Public Prosecutor’s Office (hereinafter: EPPO) at the Milan and Rome offices of Ernst & Young (hereinafter: EY) and at the offices of the Lombardy Region, over allegations of bid-rigging linked to EU-funded consultancy projects. The investigation centers on 18 projects, awarded between 2019 and 2023, to provide advisory services to the Lombardy Region on the effective use of EU funds, including technical assistance, access to tools and training.
Details of the Investigation
The investigation, led by EPPO prosecutors Sergio Spadaro and Giordano Baggio, targets six EY officials suspected of manipulating procurement processes. Allegedly, these individuals submitted proposals that exaggerated their capabilities, enabling them to win 12 out of 18 tenders by overstating available work hours. The projects, collectively valued at over €10 million, were funded by the European Social Fund (ESF) and the European Regional Development Fund (ERDF).
According to sources, the same consultancy officials appeared across multiple bids, creating overlapping assignments that surpassed realistic work limits. The investigation is centered on irregularities in the documentation provided during the tendering process, though EY as a firm and the Lombardy Region are not formally under investigation.
Official Responses
The Guardia di Finanza, Italy’s financial police, visited regional offices to collect relevant documentation on the tenders. EY has yet to issue a public statement on the subject, while Attilio Fontana, President of the Lombardy Region, expressed unawareness of the details but assured cooperation with authorities.
Conclusion
This case highlights ongoing efforts by the EPPO to ensure the proper use of funds and maintain transparency in public tenders. The investigation is ongoing, and all accused parties are presumed innocent until proven guilty.
1The news was announced by EPPO and was taken up by the major news agencies, including Reuters and Ansa.