From toxic waste to iGaming

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It is a well known fact that the underworld on the Italian peninsula controls vast stretches of the Italian economy.

Some readers would remember the underworld’s waste-management activity that ended in the sinking of some 42 ships laden with toxic and/or hazardous waste throughout the Mediterranean. This was well known to environmentalists but confirmed during the Palermo maxi-processo, when Mafia turncoat Francesco Fonti gave evidence identifying the location of one such sunken ship, the Kunsky, loaded with 120 barrels of toxic waste, just off the Calabrian coast.

This network of organised environmental crime is so vast that, at one time, it also dumped toxic, hazardous and nuclear waste in Somalia. The warlords in the Somalia civil war were partly financed by the Italian underworld, which supplied them with arms in return for their consent to the dumping of the toxic, hazardous and nuclear waste in Somalia. Rai Tre’s investigative journalist Ilaria Alpi and her cameraman Miran Hrovatin were murdered in Mogadishu after having successfully tracked down the toxic shipments.

In early 2008 it was identified that buffalo mozzarella originating from some 83 dairy farms in an area near Naples was tainted with dioxin. The buffalo were grazing in an area where the Mafia was controlling the dumping of toxic waste  containing dioxin. When ingested through food dioxin can cause birth defects and organ failure in mammals. Large quantities of buffalo mozzarella tainted with dioxin were withdrawn from the market.

Carmine Schiavone, another Mafia turncoat, spilled the beans on more dumping of toxic and hazardous waste by the Mafia in the Naples area, in particular in the area around Casale di Principe. It has been reported that the incidence of cancer in these areas has skyrocketed as a result of the dumping contaminating the water table.

It is estimated that the underworld has garnered some €20 billion a year in the last few years from its illicit dealings in waste. Add to this the billions from its drug dealings, estimated at another €20 billion annually and you can clearly understand the Mafia’s need to launder huge sums of money.

Two specific areas seem to have been selected for this purpose. One such area was an investment in wind-farms in Sicily. Wheeling and dealing in the Sicilian wind farms was a certain Gaetano Buglisi who, for a time, made use of Malta’s fiduciary services by hiding behind their corporate veil. Last February the Italian Courts sentenced him to three years in jail as well as a substantial fine on finding him guilty of tax evasion.

It is within this context that one should try to understand the iGaming saga in Malta.

In the last few days the Malta Gaming Authority (MGA) has suspended the operating licences of a number of iGaming operators. Until the time of writing, six operators have been suspended, namely : Uniq Group Limited (Betuniq), Betsolution4U Limited, Alibaba Casino Limited, Soft Casino Limited,   Fenplay Limited and Soft Bet Limited . The MGA did not act on its own initiative but at the request of Italian law enforcement agencies.

In a press release, the MGA stated these licences had been suspended “further to investigations and arrests carried out by the Italian law enforcement authorities in collaboration with the Maltese police. The MGA is providing full support to the relevant authorities so that Malta’s reputation as a gaming jurisdiction of excellence is kept free from crime and money laundering. The MGA is also alerting counterpart regulators in other EU jurisdictions about this case.”

In a further press release issued on 25 July it was stated  “At the time of application (according to the MGA’s records), in line with standard procedures, all directors, shareholders, senior managers and ultimate beneficiary owners of these companies have been screened through MGA’s systems and protocols, using probity tools and national and international contacts and organisations. This forms part of the probity checks conducted at pre-licensing stage and before the actual business model of the gaming operation in question is screened and other control systems are checked and approved. The licensing process also includes independent audits, such as system and compliance audits which are carried out by approved external auditors.”

It seems that the due diligence carried out in Malta is no match for the underworld. It is possibly a case of amateurs trying to keep professionals in check.

On Thursday, Finance Minister Edward Scicluna stated that a review of due diligence procedures will be undertaken and changes will be put in place if  required. As a start, he should consider embedding complete transparency in iGaming. Hiding the identity of iGaming operators should be discontinued by emending legislation and discontinuing fiduciary services. This corporate veil is unfortunately being used as a tool by the underworld. As a nation we could do better if we make an effort to keep organised crime as far away from Malta’s economic activities as possible. It is pertinent to ask: how many iGaming jobs in Malta depend on Mafia linked operators.

published in The Malta Independent on Sunday, 2 August 2015

On this blog on the same subject one can view the following :

2009 The eco-threat of the Italian Mafia.

2013 On Malta’s Northern doorstep: the Mafia contaminates Southern Italy with millions of tonnes of toxic and nuclear waste.

2013 Ecocide in the Mediterranean. The known consequences so far.

2013 Schiavone’s secrets on eco-mafia operations: when will Malta’s government speak up.

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The eco-threat of the Italian Mafia

 times_of_malta196x703

by Carmel Cacopardo

published September 19, 2009

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The revelation by Francesco Fonti that the Calabria Mafia sank a number of ships in the Mediterranean carrying a cargo of nuclear and toxic waste confirmed what the international environmental non-governmental organisation Greenpeace has been stating for a number of years.

The cargo on board these ships (which could number as many as 42) is of direct concern to Malta. The environmental crime of dumping this toxic and nuclear waste could have already affected (without our knowing) Malta’s water supply as well as the fish we eat and the seawater we swim in.

Whether and to what extent the food chain was contaminated is difficult to ascertain at this stage unless the relevant authorities are in a position to explain whether over the years fish and water (including sea-water) were sampled and tested for chemical contamination. Hopefully, such monitoring, sampling and testing was carried out. At this stage no information is forthcoming as to the type of toxic wastes dumped nor whether the waste dumped is still contained or else whether it has dispersed. The exact location of the dumping and the sea currents prevalent in the area would also be of extreme relevance.

Toxic contamination does not necessarily kill immediately. It may block or distort a number of our natural activities.

In the foreword to the book Our Stolen Future by Theo Colborn, Diane Dumanoski and John Peterson Myers, former US Vice President Al Gore speaks of  “a large and growing body of scientific evidence linking synthetic chemicals to aberrant sexual development and behavioural and reproductive problems. Although much of the evidence these scientific studies review is for animal populations and ecological effects, there are important implications for human health as well”.

Reference to three examples would serve to illustrate the nature of the threats.

President Jimmy Carter on August 7, 1978 had declared a state of emergency at Love Canal. A landfill containing over 21,000 tons of chemical waste dumped in the 1940s and the beginning of the 1950s caused the contamination of residential and educational environments and resulted in miscarriages, birth defects, respiratory ailments and cancer. Fifty-six per cent of children born in the Love Canal environs between 1974 and 1978 had a birth defect. This led the US to enact the Comprehensive Environmental Response Compensation and Liability Act known as the Superfund in the last days of the Carter Presidency.

In early 2008 in Italy it was found that buffalo mozzarella originating from some 83 dairy farms in an area near Naples was tainted with dioxin. The buffalo were grazing in an area of illegal dumps of toxic waste controlled by the Mafia. Dioxin can cause birth defects and organ failure.

On May 31, 1989 a beluga whale was found floating belly up near Pointe-aux-Cenelles close to Quebec, Canada. An autopsy carried out on the whale revealed that it had both a male and a female set of genital organs. It was a hermaphrodite. This was eventually traced to pollution-induced hormone disruption which derailed the beluga whale’s normal course of sexual development. “One cannot rule out,” noted the autopsy report “that pollutants present in the mother’s diet had interfered with hormonal processes (guiding the) normal evolution of the sexual organs of her foetus”. The beluga whale is a mammal like the human being.

The above examples point to the possible consequences of the Mafia eco-threat.

Sixty per cent of our water originates from the sea. Fish roam about the Mediterranean Sea including contaminated areas. Pollution will not respect borders.

All of us would be more at ease if we are informed of the measures being taken by the public authorities to shield us from these threats.

original article at   The Times