In “As long as there is war there is hope” Alberto Sordi plays a “traveling salesman in arms”: he travels the world placing rockets and cannons, eliminating the competition with bribes full of dollars. Almost fifty years have passed, but those figures have not disappeared: now they are called brokers or consultants and invoice their services, often indispensable for concluding a military contract in Africa or the Middle East. In Italy there is a meticulous law to control and make transparent all activities related to the war business: excellent intentions, betrayed by the opacity of the reports just presented by the government on arms exports in 2020.
From Qatar’s submarines to Al Sisi’s missiles: the mysteries of Italian exports
by Gianluca Di Feo
In the dark forest of documents, drawn up by four ministries and accompanied by a report from Palazzo Chigi, not only does it become impossible to understand which bombs we have sold and to which country, making it difficult to identify who has bought submarines from 007, missile drones, helicopters from combat and assault vehicles. But there is also the bureaucratic concealment of the most delicate payments of all: precisely the “intermediations”. The commercial practice often inevitable to win orders and that in several cases the investigations have instead unmasked as a cover to distribute bribes, destined to enrich African autocrats, Asian sovereigns and Arab sheikhs.
If in 2020 “intermediaries” for 54 million euros were authorized by the government, the previous year the sum reached almost half a billion: to be exact it is 457 million. Astronomical figures, such as to suggest a whirlwind of business brokers. The problem is that very different operations are mixed under this heading. In the monumental report of the Foreign Ministry – 677 pages paved with abbreviations and numbers – the term “intermediation” also means “supplies of armament materials or services carried out from abroad to abroad”. What does it mean? This should be sales managed by foreign branches of domestic companies. And the sale of foreign components for systems of Italian production, such as aircraft engines or the like. Nothing suspicious, then.
However – as the document explains – in the same cauldron “the brokerage fees, deriving from the support activity provided by local mediators / agents / consulting firms outside the actual contractual activity” end up in the same cauldron. Precisely those at the center of dozens of scandals on all continents: the sum that remains in the pockets of those who facilitate the sale of frigates, missiles and helicopters. Frequently, however, sharing the proceeds with ministers and ruling houses.
Disarmament activists at the Court of Rome: “Do not dismiss the Italian responsibilities for the bombs in Yemen”
by Giampaolo Cadalanu
There is a way to try to shed some light in the jungle of quibbles. Just explore the meanders of the report of the Ministry of Economy, another 537 pages of tables. There the tangible assets are separated from the actual “brokerage fees”, which therefore should be the fee for brokers and consultants. And if one goes through the detailed lists, a geographical feature immediately catches the eye. Very disturbing. While in war transactions with European countries or with NATO members the “brokerage fees” are absent or negligible, when instead you enter Africa or Asia the amounts take off.
A few examples? Four million and 200 thousand euros for Kenya; 3.2 million for Pakistan; more than two million for Indonesia and the same number for Nigeria; 658 thousand euros for Zambia; 600,000 for the Philippines; half a million for the very poor Sudan and half a million for Cameroon; 150 thousand for Bangladesh. It is not that in rich countries they spend less. The only transaction cataloged as “number 72128” provides brokerage fees of 4 million and 855 thousand euros for Saudi Arabia. Then there are one million and 900 thousand euros for Qatar; 1.7 million for Thailand; one million and 200 thousand euros for Taiwan; 826 thousand for the Emirates and a slightly lower figure for Singapore, 600 thousand in Turkmenistan. Then 1.2 million appear for Egypt and a million for Turkey. And dozens and dozens of other parcels, from Togo to Iraq.
Di Maio’s desperate mission: three days in Abu Dhabi to mend the frost with the Emirates
by Vincenzo Nigro
We are talking about amounts credited, that is, actually paid. Getting to the bottom of the nature of these transfers is not easy: but if Parliament wished, it could ask for explanations. Every single accreditation has a serial number: a rigorous even if not transparent cataloging. Even Mef occasionally gets lost in an even higher opacity. In the list there are transfers generically classified with the item “other”. Some are impressive: 150 million related to supplies to Turkey, 139 million to those for Egypt, 59 million on Pakistani contracts, 33 million on Qatar. A lot of money without motivation: they are just “other”.
The government report, however, points out that the military industry is kept under control, complete with company inspections and punishments for those who do not respect the rules. In 2020, there were eleven checks. The sanctions? Overall fines of 26 thousand euros. Yes, you read that right: 26 thousand euros against deals concluded for 7 billion and 800 million euros. It is not an exception. In the last seven years, inspections have been in all 75 with 580 thousand euros of total penalties. The price of a handful of bullets.
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