CAPACI

Creation of Automated Procedures Against Criminal Infiltration in Public Contracts

HOME/2010/ISEC/FP/C2/400001456

Presentation overview

� CAPACI Project outline

� EU DG Home Affairs Financing overview

� First results and upcoming tasks

� Extent of CAPACI – Monitored public works

� Project details

� EU added value

EUROPEAN COMMISSION

DIRECTORATE-GENERAL JUSTICE , FREEDOM AND SECURITY

Directorate F: Security

Unit F4: Financial support - Security

SPECIFIC PROGRAMME

"Prevention of and Fight against Crime 2010"

Call restricted to framework partners

What is CAPACI?

It is a project pursuing an improved protection of the market ofpublic contracts by enhancing transparency and exploiting theinformative potential of financial flows recorded on bankaccounts of all businesses (general contractor, subcontractors,suppliers) involved in the implementation of public works, inorder to:

- acquire an increased knowledge of the use of public resources;

- provide support to investigations aimed at preventing criminalinfiltration in public contracts.

CAPACI Project – Administrative details

� Funded by European Commission (DG Home Affairs)

under specific programme “Prevention of and fight

against crime 2010”

� Project cost: 650,000 € (approx.)

� EU contribution: 435,000 € (approx.)

� Co-funding rate: 66.80%

� Project duration: 24 months starting from 02/09/2011

Project partners

Applicant

Partners

Ministry

of Interior

DIPE(Presidency of the

Council of Ministers)

CBI ConsortiumFormez PA(Public body)

Project Leader

Monitoring

co-ordination

Focal point

for the banking

system

Project

management

Inspiration for project title

He was assassinated at Capaci, near Palermo, in 1992.

Giovanni Falcone was a lead Italian

magistrate involved in the fight against

mafia.

His success derived partly from the

painstaking examination of thousands of

bank records.

EU Funding for Home Affairs

Overview of the Programme «Prevention and Fight against Crime – ISEC» (1/2)

This programme (EUR 600 million for the period 2007–13) contributes to citizens’ security by preventing and combating crime, in particular terrorism, trafficking in persons, child abuse, cybercrime, illicit drug and arms trafficking, corruption and fraud.

It focuses on four strands:

• crime prevention

• law enforcement

• witness protection and support

• victim protection.

Overview of the Programme «Prevention and Fight against Crime – ISEC» (2/2)

Financial support is provided for actions that aim at :

• increasing operational cooperation (e.g. strengthening networking,

mutual confidence and understanding, exchanging and disseminating

information, experiences and best practices);

• monitoring and evaluation activities;

• the development and transfer of technology and methodology;

• training and exchanges of staff as well as awareness-raising and

dissemination activities.

CHARACTERISTIC OF THE PROJECT

TRANSNATIONAL NATIONAL PROJECT PROJECT

NATIONAL PROJECT

NATIONAL projects must:

• prepare transnational projects and/or Union actions ("starter

measures")

• complement transnational projects and/or Union ("complementary

measures")

• contribute to developing innovative methods and/or technologies

with a potential for transferability to actions at Union level, or

develop such methods or technologies with a view to transferring

them to other Member States and/or other country which may

either be an acceding or a candidate country

OVERALL OBJECTIVE

develop an effective tool for combating organized crime infiltration into public

works contracts, both in Italy and in other EU Countries

This will be achieved by

• developing an automatic alarm system in Italy to signal suspect financial movements in relation to large public contracts,

• analyzing the compatibility of the system with norms, procedures and strategies in other MS,

• testing the system on two large contracts in Italy, and on other contracts in selected EU countries,

• presenting the benefits of the system to the other countries of the EU, and providing training in selected countries,

• providing a set of guidelines to the EC and to other interested countries,

• providing an overview of the feasibility of extending the system to other parts of the EU.

ACTIVITIES

Activity nr. 1: Testing of the system on the "Cannitello Railway switch" and

Rome Metro C;

Activity nr. 2: Development of indicators and alert system;

Activity nr. 3: Survey of other EU Member States (norms and operating

procedures);

Activity nr. 4: Production of Guide;

Activity nr. 5: Training to 2 countries;

Activity nr. 6: Experimentation of the system in other countries;

Activity nr. 7: Management;

Activity nr. 8: Communication and Dissemination;

FORESEEN RESULTSActivity 1

Enhanced knowledge of the functionality of the system; statistics on the number of suppliers, financial flows monitored; report on the feasibility of upscaling the system.

Activity 2

Set of indicators and description of procedures for alert mechanism.

Activity 3

Enhanced knowledge of the readiness of EU MS to implement a similar system. Report.

Activity 4

Dissemination of the Capaci system; Guidelines Handbook in English, detailing requirements and procedures for the implementation of the system in other EU MS.

Activity 5

Key experts from two European member states trained; training materials.

Activity 6

Enhanced knowledge of the functionality of the system in two other member states; report on the experimentation of the system in two EU countries.

Activity 7

Correct and efficient management of project activities and resources; annual technical and financial reports.

Activity 8

Website and printed materials, international conference.

How does it work?

It builds on a previous experimentation of a financial monitoring

system (2009-2011), of which it constitutes an improvement

getting financial support by the European Commission.

Among the outputs of the system:

� a database with information on individual transactions and

payment status reports;

� a system of alerts/warnings that will report unusual behaviour;

� dissemination to other EU countries.

Operational logic

� Account holders (involved businesses) authorise the monitoring of their bank accounts

� Financial statements and payment status reports of authorised bank accounts are sent to a central collection point within the interbank system and then conveyed to the public entity in charge of the monitoring system

� The monitoring system processes the financial data, making reports available and sending alerts if needed

Operational details

� Each business holds one bank account for each public work in which it is involved

� Payments only allowed as XML SEPA credit transfers (with minor exceptions)

� Credit transfer tagged with identifying code for specific public work (CUP)

� Credit transfer status report sent to monitoring system

CAPACI – First results and upcoming tasks

First results:

� Development of data exploration and reporting system

� Survey of legislation in other EU Member States (DE,

ES, FR, NL)

Upcoming tasks:

� Development of alert system

� International dissemination

Data exploration and reporting system

Extent of CAPACI Project

Id Title Status MoU

ASection of Rome

UndergroundOn-going

Signed

(Jun. 2009)

BCannitello

railway switchOn-going

Signed

(Aug. 2011)

CPompeii Major

ProjectStarting Being signed

DCispadana

Motorway

At design

stage

Under

negotiation

C

B

A

D

Rome Underground

Line CT5 section

T5: A project

worth approx. 400 M€

CASILINA PRES. Spa

MIGLIACCIO LUCIANO

IAT

IMPERBEABILIZZAZIONI

Gmbh

OVATT. ALPINO Srl

POLYGLASS Spa

CONEDIL Srl

GENERAL BROKER

SERVICES SPA

RICCI COSTR

UZ.

EUROFIN

PROPRI C/C

EUROFIN BONIFICI TRA PROPRI C/C

ROMA METROPOLITANE

FAMILARI TRASPORTI

OMS Srl

SURVEY

ASSIST. Srl

SURVEY TECH.

ASSIST. Srl

NO.VE. Srl

MAK

Srl

MAK MACCHINE

Srl

SO.COM.CI. Srl

I.P.L. Srl

BIFFOLI Spa

SOL Spa

DISTR. ROMA SUD Scarl

EP EDILIZIA

Srl

EP EDILIZIA PREFABBR.

Srl

ECOSERVICE IMPIANTI Srl

SIECI 98 Srl

TRIVEL SUD Srl

IMPRESA ROMANA Srl

EMME 430 Srl

GAMBARINI F. E FIGLIO

PROCHIN ITALIA Srl

PROCHIN ITALIA Srl

DOKA ITALIAN Spa

EDILMACO Srl

HARSCO INFR. Spa

SALVATORE

Srl

SALVATORE GIULIANO

Srl

METRO C

SO.COM.CI

Srl

IFITALIA

CONSORZIO E.R.E.A.

IMPERTEK Srl

METRO C Scpa*

TECNOPROGETTI

Srl

FERALPI

SIDERURGICA Spa

RICCI COSTRUZIONI Spa

(partner of Consorzio E.R.E.A.)

EUROFIN

(partner of Consorzio E.R.E.A.)

CASTALDO

EDILMACO SRL

RICCI

SRL

RICCI APPALTI

INTERNAZ. SRL

SYSTEM

SRL

SYSTEM COSTRUZ.

SRL R-TUBI SRL

R-TUBI SRL

RICCI

PROPRI C/C

RICCI COSTRUZIONI

BONIFICI TRA PROPRI C/C

PANCAR

SRL

BIFFOLI

S.P.A.

BETOCENT

ER SRL

BETOCENT

ER SRLEUROPEA 92

PROPRI C/C

EUROPEA 92 S.P.A.

BONIFICI TRA PROPRI C/C

EUROPEA 92 Spa

(partner of Consorzio E.R.E.A.)

GE.RA. SRL

Implementing body

General Contractor

Factoring company

Contractor

Sub-contractor

First-level supplier

Second-level supplierCONSORZIO E.R.E.A. Lavori

Line C – A long supply

chain

Cannitello railway switch: a smaller project in a high-risk area (19 M€)

New railway tracks

Some data on Cannitello start-up phase

� Memorandum of Understanding signed in Aug. 2011

� 22 sub-contracts dated between Mar. 2010 and Jul.

2011

� Number of monitored bank accounts increasing regularly

between Oct. 2011 and Mar. 2012

Pompeii Major Project

Pompeii: a recent history� 29/03/2012: European Commission approves funding fromthe European Regional Development Fund for a major projectto restore the area of the UNESCO site of Pompeii, inCampania, Italy.

The project ”preservation, maintenance and improvement ofthe archaeological site of Pompeii” will lead to the investmentof 105 million euro of EU and national contributions combined.

� 05/04/2012: Signature of Memorandum of Understandingfor the inclusion into CAPACI.

Up next: Cispadana Motorway (1.2 bn€)

Advantages for other countries

� Promotion of co-operation and strenghtening of networks

� Improvement of ability to monitor criminal infiltration in

public works contracts

� Facilitation of trans-national participation in tenders,

thanks to higher levels of transparency

CAPACI – International dissemination

� Production of printed guide

� Study visits

� Training to other countries

� Experimentation in other countries

� International conference in Rome

ADDED VALUE at EU LEVEL (1)

The added value of the project at European level derives from the fact

that it aims to disseminate a tool developed in Italy throughout the rest

of the Union, with specific attention on the one hand to countries which

are ready to apply this tool with a minimum of preparation, and on the

other to those which are most in need of effective monitoring

instruments in this field.

ADDED VALUE at EU LEVEL (2)

Furthermore, the project will produce a survey of practices and

legislative norms in all European countries which will be of great use to

the Commission itself in encouraging greater harmonization in this

area. The interactive nature of the project, which is based not only on

training and dissemination but also on on-the-job collaboration and

practical experimentation in countries outside Italy, will ensure that

these countries receive the full benefit of Italian experience in this area.

Thanks for your attention

Riccardo Coletta

rcoletta.guest@formez.it

Mariangela Pantaleo

mpantaleo.guest@formez.it