Italy prime minister spied-on, tax records checked

By Staff
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MILAN, Oct 26 (Reuters) Italian Prime Minister Romano Prodi and his wife have been spied on for the past two years with state employees making illegal checks on their tax returns and financial records, a judicial source said today.

The investigation led by Milan prosecutors showed the tax records of centre-left leader Prodi, who came to power after narrowly winning an April election, were checked ''many, many times'', the source told Reuters.

In a statement, Prodi's spokesman said the prime minister was ''shocked and deeply upset'' by the reports and said checks into the financial affairs of Prodi and his wife had failed to find any irregularities.

Prosecutors were investigating 128 officials at the internal revenue department, its tax police and at other public agencies.

Searches were under way in various cities today, said the source, who declined to be named.

Prodi's statement mentioned illegal checks being carried out over the past two years, but it was not immediately clear whether they had continued since Prodi's election.

In any case, they took place during Prodi's campaign for office, sparking speculation among the centre-left that they may have been ordered by centre-right political opponents.

''It's obvious that only clear and unacceptable political motives can be behind this kind of activity,'' said Gianclaudio Bressa, a centre-left lawmaker in the lower house of parliament.

The investigation found that other Italian personalities, including politicians and show business people, also had their financial records checked illegally, the judicial source said.

The revelations are the latest in a series of scandals about illegal spying during the centre-right government of Silvio Berlusconi, Italy's richest man.

Last month, police arrested a former manager and employees at phone company Telecom Italia in a separate probe into alleged wiretaps to collect sensitive information on well-known businessmen and others.

The head of Italy's military intelligence agency, Nicolo Pollari, faces possible indictment in the coming weeks over a Milan investigation into the alleged CIA abduction of a terrorism suspect in 2003.

Prosecutors believe the Italians helped gather intelligence illegally to help the American agents kidnap the suspect and fly him out of the country.

Italian media say Pollari is likely to be removed from his post before the end of the year.

REUTERS DKB RN1909

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