St Lucia entangled in Italian scandal

The St Lucia government has launched an investigation to determine how a confidential memo written to Prime Minister Stephenson King by his Attorney General Rudolph Francis has been published in Italy, where a political scandal is brewing involving the brother-in-law of the chairman of the Italian parliament.

Francis confirmed that he had written Prime Minister King on the ongoing investigations into two St Lucia-registered offshore companies that the Italian press claim are owned by Giancarlo Tullianio.

"The government of St Lucia was reliably informed that St Lucia has been featured in a number of Italian newspapers as a result of some offshore companies with their offices registered in St Lucia.

"As a result, the prime minister requested that I basically investigate the matter to determine if, in fact, there were any negative implications and consequences for St Lucia," Francis said, adding that "my preliminary investigations revealed certain facts and suspicions. Consequently, I wrote a confidential memo to the prime minister informing him of my preliminary findings.

"In the meantime, I have launched a formal investigation into the matter. As to how a confidential memo to the prime minister got in the hands of the Italian press is a mystery.

"Such incidents merely highlight the level of vulnerability of our communication systems, things we in St Lucia take for granted," he said in a statement.

The offshore companies allegedly purchased an apartment in Monte Carlo at a price substantially below their market value.

The apartment had been previously owned by a political party which was once headed by the chairman of the Parliament, Giofranco Fini.

Italian media reports said the market value of the apartment was about €1 million (US$1.3 million) but was sold for significantly less.

The Italian newspapers have published the confidential document, but the chairman of the Italian parliament said it is false and that it may have been prepared by Italian intelligence.

- CMC