Italian Prime Minister Silvio Berlusconi Under Investigation for Corruption Charges

Italian magistrates have initiated an investigation into corruption charges against Prime Minister Silvio Berlusconi, amid a deepening crisis in his three-party governing coalition. The move follows a series of corruption scandals and protests over the Government's economic measures, which have pushed the Prime Minister's popularity to a new low. Berlusconi, a 58-year-old billionaire, has denied any personal involvement in the corruption charges and blamed leftist magistrates for a vendetta against his conservative government.

Key Takeaways:

• Italian magistrates have placed Prime Minister Silvio Berlusconi under investigation for corruption charges related to bribes paid to tax inspectors by his business empire, specifically Mondadori publishing and Mediolanum insurance.
• Berlusconi has acknowledged that his company paid bribes to tax officials but denied any personal involvement, casting the accusations as part of a vendetta by leftist magistrates against his government.
• The Prime Minister's office confirmed that he had been served with a judicial notice of guarantee, a device that is supposed to guarantee a citizen's rights in magistrates' investigations but is widely viewed as the near-equivalent of an accusation.
• This is the first time a notice of guarantee relating to corruption charges has been sent to an Italian Prime Minister in office, with several former Prime Ministers, including Giulio Andreotti and Bettino Craxi, having been placed under investigation on various accusations since 1992.
• Berlusconi's popularity has declined due to the Cabinet's tough economic measures, his continued ownership of Fininvest, and his tense relationship with anti-corruption magistrates.
• The investigation has sparked intense debates over whether there is a conflict of interest between the Prime Minister's political office and his continued ownership of Fininvest, a vast conglomerate with estimated annual business of $7 billion.

Statistics:

• Estimated annual business of Fininvest is $7 billion.
• The Prime Minister's Fininvest company has admitted to paying bribes to tax officials, but denied any personal involvement in corruption charges.
• Over $140,000 in bribes were paid by Mondadori publishing and Mediolanum insurance to tax inspectors.
• Thousands of Italian business executives and politicians have been implicated in the magistrates' so-called Mani Pulite, or clean hands, investigations into kickbacks paid for Government contracts since February 1992.
• The Italian currency (the lira) fell to 1,605 against the dollar and tumbled to its lowest rate ever against the German currency, closing at 1,035 to the mark, following the news of the investigation.

Sources:

• The New York Times, September 12, 1994.
• Corriere della Sera, September 12, 1994.