EU-money to the mafia, the tobacco industry and multinationals?


Journalists have dug out the beneficiaries of EU-farmsubsidies for citizens to see them at Farmsubsidy.org.

Now a new team of journalists has dug out the recipients of the other large lump on the EU-budget: The regional funding. In a unique cooperation and 8 months research the new London Bureau for Investigative Journalism and the Financial Times have cooperated and followed the money – resulting in important stories.
The team behind has made accessible the underlying database for everyone to search.

Today the Watchdog Blog is happy to present a guest comment by Annamarie Cumiskey, senior journalist at the London Bureau and highly experienced in European affairs.

By Annamarie Cumiskey

It’s a myth that the Italian mafia puts a horses head in your bed if it doesn’t like you. They put a dead dogs’ head in front of your door instead.

And, I know this because while working with the Bureau of Investigative Journalism, www.tbij.com in London, in collaboration with the Financial Times, I had chance to meet Colonnello Pierone, the man whose job it is to put mafia bosses behind bars in Southern Italy.

We met to talk about EU structural funds, as part of an eight month long investigation that is being rolled out this week, when the dead dogs’ head came up.

The dead dog was found in our new online database, not literally, but through one of the many ways the Italian mafia has found to get its dirty hands on European taxpayers money.

We brought together all the lists of beneficiaries of the ERDF and ESF under the current €347bn spending round – over 650,000 projects.
One project, the modernisation of the Salerno – Reggio Calabria highway in Southern Italy, has been allocated €400,000, and since then the local mafia have been putting dead dog heads in front of construction workers doors to frighten them into paying extortion money.

Some of the gang members are more sophisticated white-collar criminals, and they really have collared EU grant aid – €1.2bn in recent years according to a report by the Italian financial police.

Don’t worry they can always seek repentence for their sins at the EU grant aided Church of Madonna di Polsi nearby that also happens to be their spiritual home.

The Italian mafia makes it look so easy, and that’s the problem it is.
The Italian mafia, fortunately, is an extreme case of how EU funds are abused, but it shows how impotent the EU institutions are to stop this.  And, this will stay the same due to the inherent nature of the EU – 80% of its budget is spent at national level, and the EU can’t control what happens there.

Al Jazeera, BBC Radio 4 File-on-Four, BBC World Service and France 2 will also broadcast programmes based on our research.