The mayor of Melfi in the
southern Italian region of Basilicata, Livio Valvano, was placed
under house arrest on Tuesday on suspicion of involvement in
steering public contract awards in the area.
Three other people were arrested and one was issued with a
residence ban in connection with the probe, which investigators
say has brought to light an "existing system of shady dealings
within the municipality" that aimed to ensure that "contracts
and public works were awarded to friendly companies or to those
named by friends or local politicians".
The suspects include administrators, entrepreneurs and city
council employees.
They are variously accused of interference in the free
choice of contractor, inappropriate persuasion to give or
promise goods and other utilities and falsehood.
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