Three people have been convicted in Italy over a €6.4 million fraud involving EU subsidies intended for liquefied natural gas (LNG) infrastructure projects.
Two administrators and an employee of a consortium company were found guilty of misappropriating EU funds meant to develop parts of Italy’s LNG network, the European Public Prosecutor’s Office (EPPO) informed on Thursday.
The subsidies were intended to manage and promote projects linked to the construction and operation of natural gas refuelling infrastructure near ports.
The consortium received €6,351,088.56 in EU funding between 2016 and 2021, including work on prototypes for LNG containers.
The money was awarded under the EU’s Connecting Europe Facility programme by the European Climate, Infrastructure and Environment Executive Agency (CINEA) and Italy’s Ministry of Infrastructure and Transport.
Claims of diverted funds and false paperwork
A “significant portion” of the funds — €5,586,487.03 — was diverted from its intended purpose, an investigation supported by Italy’s financial police, the Guardia di Finanza in Venice and Rome, found.
The company did not have the organisational structure, technical expertise or qualified staff needed to carry out the projects.
EU funds were used to pay people without the necessary technical skills, finance activities unrelated to the projects and cover personal expenses.
The investigation also found invoices for non-existent transactions and falsified accounting records that misled both CINEA and Italy’s transport ministry.
The Court of Padua convicted the three defendants on 9 April and handed down prison sentences ranging from one year and eight months to six years and two months, the EPPO said.
One person was acquitted, while two other suspects reached plea bargains earlier in the case.
The court also ordered the confiscation of €1.97 million. The consortium company was declared bankrupt by the Padua Court on 3 June 2021.
