By Emilio Parodi MILAN (Reuters) - Prosecutors on Wednesday arrested a former senior manager of Milan's urban planning sector, alleging that a network of corruption was at the root of the dozens of
Corruption Network Alleged in Milan's Urban Planning Investigations
By Emilio Parodi
MILAN (Reuters) - Prosecutors on Wednesday arrested a former senior manager of Milan's urban planning sector, alleging that a network of corruption was at the root of the dozens of investigations that led to a construction stalemate in Italy's financial capital.
Giovanni Oggioni, 68, an architect who until two months ago headed the main municipal body responsible for approving building projects, has been placed under house arrest on charges of bribery, forgery and deception, according to a 258-page arrest warrant reviewed by Reuters.
Guardia di Finanza police at the same time searched two offices of the Milan municipality, the headquarters of builders' association Assimpredil Ance, and the real estate company AbitareIn, both of which are under investigation.
According to the arrest order, Assimpredil Ance gave a consulting contract worth nearly 180,000 euros ($193,000) to Oggioni when he was a civil servant, while AbitareIn hired his daughter.
Oggioni had given a green light to 11 construction projects by firms from the first association, and to five from the second company, Milan prosecutors said in the warrant.
Oggioni's lawyers did not reply to a request for comment.
Assimpredil Ance said in a statement that it was cooperating with the judicial authorities and pointed out that it "has always operated with the utmost transparency and fairness, for the purposes and in the manner established by its bylaws".
AbitareIn confirmed in a press release that it and two of its officials are under investigation, adding that it has confidence in the judiciary, with which it intends to cooperate and says it is certain of its complete lack of involvement in the charges.
Prosecutors said investigations related to the largest urban planning projects in Milan, "have brought to light a 'system'....whose purpose is to facilitate the issuance of illegal building permits and to carry out highly speculative real estate transactions".
Milan had been on a roll since 2015, when the Expo international exhibition helped to transform the city into a hot spot for property developers, pushing up prices and attracting foreign investment.
But complaints from Milan residents objecting to the mushrooming of multi-storey buildings in their neighbourhoods have triggered investigations into alleged abuses in the fast-tracking of building permits, with more than 100 active or planned building sites having stalled.
The issue has assumed national prominence with the lower house of parliament approving in November a bill to change town planning laws to resolve the Milan stalemate.
The bill, dubbed "Save Milan", was submitted by the ruling centre-right majority with the endorsement of the main centre-left opposition PD party and on Thursday will reach the Senate, upper house.
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(Reporting by Emilio Parodi, editing by Keith Weir and Angus MacSwan)
