Why is the Mafia investing in renewable energy?
The renewable energy industry is apparently becoming a favorite playground for the underworld, Alic writes. Lucrative government subsidies for the construction of wind farms and a fairly lax regulatory system have made renewable energy attractive to the Mafia.
The renewable energy industry is apparently becoming a favorite playground for the underworld, Alic writes. Lucrative government subsidies for the construction of wind farms and a fairly lax regulatory system have made renewable energy attractive to the Mafia.
When the Italian authorities seized $1.7 billion in mafia-linked assets this week, many were surprised to see learn that the renewable energy industry is apparently becoming a favorite playground for the underworld.
The听assets seized听included 43 wind and solar energy companies, along with 66 bank accounts linked to mafiosa Vito Nicastri鈥攁lso now known as the 鈥淟ord of the Wind鈥�.
This came as a surprise only to those who haven鈥檛 been following the renewable energy industry in Europe closely. In听2010, Italian authorities froze Nicastri鈥檚 assets after an investigation turned up evidence that the Mafia was actually using renewable energy projects to launder money.
Nicastri, 57, is a colorful figure who has been linked to the 鈥済odfather鈥� of Cosa Nostra, the Sicilian Mafia, Matteo Messino Denaro.听(Related article:听Italian Anti-Mafia Police Seize 鈧�1.3 Billion from the King of Alternative Energy)听
Nicastri is now under house arrest and heavy surveillance and will remain so for the next three years while authorities make the case against him. He is听accused听of declaring only a fraction of the value of his alternative energy business in his taxes.
The uncomfortable truth for Italy is that its high-ranking status as an ambitious installer of renewable energy programs鈥攑articularly wind鈥攈as been achieved on a significant level in the underworld. The country generates more than 5,000 megawatts of wind energy from nearly 300 wind farms.
What has attracted the Mafia to the renewable energy scene? That鈥檚 easy: lucrative government subsidies for the construction of wind farms and a fairly lax regulatory system. Geography has also played a role: The wind farms are largely in the country鈥檚 south where the Mafia enjoys a strong presence and where they control much of the land. These farms鈥攁nd other subsidized renewable energy projects鈥攁re convenient venues for laundering money.听(Related article:听The Mafia is Moving into Renewable Energy)
As reported by Agence France Presse, Arturo de Felice, head of Italy鈥檚 anti-mafia agency, said the renewable energy sector in one 鈥渋n which money can easily be laundered. Operating in a grey area helped [Nicastri] build up his business over the years.鈥�
The Italian asset seizure is likely to bring more scrutiny to the renewable energy business鈥攁s well as subsidy programs鈥攁cross Europe. And certainly Italy isn鈥檛 the only venue where Mafia is taking advantage of state-supported renewable energy ambitions.
According to Sarajevo-based听ISA Intel, which conducts investigations across Europe, the Middle East and Africa, there is also emerging evidence that the Greek underworld is dabbling in renewable energy as well, laundering money from oil smuggling and other criminal operations through subsidized renewable energy projects.
Source:听http://oilprice.com/Alternative-Energy/Renewable-Energy/Renewable-Energy-the-Mafias-Newest-Playground.html