Melfi mayor arrested in contract probe

(ANSA) - Potenza, January 20 - 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.