CAPACICreation of Automated Procedures Against Criminal Infiltration in Public Contracts HOME/2010/ISEC/FP/C2/400001456
Presentation overviewCAPACI Project outlineEU DG Home Affairs Financing overviewFirst results and upcoming tasksExtent of CAPACI – Monitored public worksProject detailsEU added value
EUROPEAN COMMISSIONDIRECTORATE-GENERAL JUSTICE , FREEDOM AND SECURITYDirectorate F: SecurityUnit 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 Ministry Applicant of Interior Project Leader DIPE Formez PA Partners (Presidency of the CBI Consortium (Public body)Council of Ministers) Monitoring Focal point Project co-ordination for the banking management system
Inspiration for project titleGiovanni Falcone was a lead Italianmagistrate involved in the fight againstmafia.His success derived partly from thepainstaking examination of thousands ofbank records.He was assassinated at Capaci, near Palermo, in 1992.
Overview of the Programme «Prevention and Fight against Crime – ISEC» (1/2)This programme (EUR 600 million for the period 2007–13) contributesto citizens’ security by preventing and combating crime, in particularterrorism, trafficking in persons, child abuse, cybercrime, illicit drug andarms 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 PROJECTTRANSNATIONAL 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 inrelation to large public contracts,• analyzing the compatibility of the system with norms, procedures and strategies in otherMS,• testing the system on two large contracts in Italy, and on other contracts in selected EUcountries,• presenting the benefits of the system to the other countries of the EU, and providingtraining 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.
ACTIVITIESActivity nr. 1: Testing of the system on the "Cannitello Railway switch" andRome Metro C;Activity nr. 2: Development of indicators and alert system;Activity nr. 3: Survey of other EU Member States (norms and operatingprocedures);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 1Enhanced 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 2Set of indicators and description of procedures for alert mechanism.Activity 3Enhanced knowledge of the readiness of EU MS to implement a similar system. Report.Activity 4Dissemination of the Capaci system; Guidelines Handbook in English, detailing requirements andprocedures for the implementation of the system in other EU MS.Activity 5Key experts from two European member states trained; training materials.Activity 6Enhanced knowledge of the functionality of the system in two other member states; report on theexperimentation of the system in two EU countries.Activity 7Correct and efficient management of project activities and resources; annual technical andfinancial reports.Activity 8Website and printed materials, international conference.
How does it work?It builds on a previous experimentation of a financial monitoringsystem (2009-2011), of which it constitutes an improvementgetting financial support by the European Commission.Among the outputs of the system: a database with information on individual transactions andpayment status reports; a system of alerts/warnings that will report unusual behaviour; dissemination to other EU countries.
Operational logic Account holders (involved businesses) authorisethe monitoring of their bank accounts Financial statements and payment status reports ofauthorised bank accounts are sent to a central collectionpoint within the interbank system and then conveyed to thepublic 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 publicwork in which it is involved Payments only allowed as XML SEPA credit transfers(with minor exceptions) Credit transfer tagged with identifying code for specificpublic work (CUP) Credit transfer status report sent to monitoring system
CAPACI – First results and upcoming tasksFirst 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
Extent of CAPACI ProjectId Title Status MoU Section of Rome Signed DA On-going Underground (Jun. 2009) Cannitello Signed AB On-going C railway switch (Aug. 2011) Pompeii MajorC Starting Being signed B Project Cispadana At design UnderD Motorway stage negotiation
Line C – A long supply chain ROMA METROPOLITANE Implementing body General ContractorGENERAL BROKER SERVICES SPA METRO C IFITALIA Factoring company Contractor Sub-contractor First-level supplier CONSORZIO E.R.E.A. Lavori EUROPEA 92 Spa Second-level supplier (partner of Consorzio E.R.E.A.) PROCHIN DISTR. ROMA EMME 430 Srl NO.VE. Srl ITALIA Srl SUD Scarl EP EDILIZIA GAMBARINI BETOCENT PREFABBR. BIFFOLI Spa F. E FIGLIO ER SRL IAT Srl EUROPEA 92 IMPERBEABILIZZAZIONI S.P.A. Gmbh ECOSERVICE BONIFICI TRA OMS Srl IMPIANTI Srl PROPRI C/C CONSORZIO OVATT. RICCI COSTRUZIONI Spa E.R.E.A. ALPINO Srl SO.COM.CI. SIECI 98 Srl (partner of Consorzio E.R.E.A.) Srl CONEDIL Srl IMPERTEK POLYGLASS FAMILARI HARSCO DOKA Srl Spa SOL Spa INFR. Spa ITALIAN Spa TRASPORTI SURVEY EDILMACO SALVATORE IMPRESA GIULIANO SO.COM.CI TECH. Srl ROMANA Srl Srl Srl ASSIST. Srl CASILINA PRES. Spa TECNOPROGETTI R-TUBI SRL PANCAR I.P.L. Srl SRL Srl MAK RICCI FERALPI MIGLIACCIO TRIVEL SUD COSTRUZIONI BIFFOLI SIDERURGICA Spa LUCIANO MACCHINE S.P.A. Srl BONIFICI TRA Srl PROPRI C/C RICCI METRO C BETOCENT GE.RA. SRL COSTR CASTALDO ER SRL UZ. Scpa* RICCI APPALTI EDILMACO EUROFIN INTERNAZ. SRL (partner of Consorzio E.R.E.A.) SRL SYSTEM COSTRUZ. PROCHIN SRL ITALIA Srl R-TUBI SRL EUROFIN BONIFICI TRA PROPRI C/C
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: 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.
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 factthat it aims to disseminate a tool developed in Italy throughout the restof the Union, with specific attention on the one hand to countries whichare ready to apply this tool with a minimum of preparation, and on theother to those which are most in need of effective monitoringinstruments in this field.
ADDED VALUE at EU LEVEL (2)Furthermore, the project will produce a survey of practices andlegislative norms in all European countries which will be of great use tothe Commission itself in encouraging greater harmonization in thisarea. The interactive nature of the project, which is based not only ontraining and dissemination but also on on-the-job collaboration andpractical experimentation in countries outside Italy, will ensure thatthese countries receive the full benefit of Italian experience in this area.
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