TELECOMMUNICATIONS/ITALY: TELEKOM SERBIA CASE MAKES WAVES.

"The puppet master is to be found at the Palazzo Chigi" (the seat of Government), said Piero Fassino from the city of Bologna, protesting at a virulent press campaign directed against himself by the media controlled by Silvio Berlusconi. The Prime Minister immediately announced his intention to take the case to court. His lawyers filed a complaint before the Bologna public prosecutor, Bologna being the city where the alleged defamation took place.

The case dates back to 1997 and the acquisition by the State operator Telecom Italia of a 29% stake in Telekom Serbia for 878 billion Lire (about Euro 440 million). At the time, Slobodan Milosevic was still in power in the former Yougoslavia whilst the Italian Government was led by Romano Prodi, current President of the European Commission. Lamberto Dini was Italy's Foreign Minister, Piero Fassino his under-Secretary of State and Carlo Azeglio Ciampi, now President of the Republic, head of the Treasury, a 61% shareholder in Telecom Italia. The scandal broke with the arrest in Switzerland in May 2003 of Italian Igor Marini, under investigation for money laundering and fraud. Mr Marini, who describes himself as a financial intermediary and has accused Messrs Prodi, Dini and Fassino of receiving enormous sums in the context of the Telekom Serbia deal.

Mr Prodi set pout his position in a declaration issued at the beginning of September. In this declaration, Mr Prodi points out that a parliamentary committee is currently investigating these events in Italy and will present a report to the Italian Parliament "which will not concern the Government's political choices". The Turin public prosecutor is also conducting an enquiry...