Former Telecom Italia (TI) chief Marco Tronchetti Provera threw down the gauntlet in a row with Premier Romano Prodi on Tuesday, accusing the
premier of lying. Tronchetti Provera, TI's largest shareholder, said in an interview published by the Financial Times that Prodi had known of a plan to spin-off and possibly sell the telecommunications company's mobile phone unit TIM, contradicting the premier's version of events.
"I explained (to Prodi) that we needed flexibility on assets, (that) there was the possibility of selling part of the network, part of TIM, part of anything," the London daily quoted Tronchetti Provera as saying.
Tronchetti Provera resigned as TI chairman last month after crossing swords with Prodi over the plan to create stand-alone companies for TI and TIM. The plan represents a radical strategy change since former state monopoly TI and TIM were integrated little more than a year ago.
It was therefore seen as a possible precursor to a TIM sell-off, which would allow TI to reduce its 41.3-billion-euro debt burden and focus on media and broadband activities. Prodi expressed surprise and concern at the U-turn, which Tronchetti Provera unveiled on September 11, and criticised Tronchetti Provera for failing to inform him during two meetings prior to his announcement.
The premier was subsequently embarrassed by the leaking of a confidential report drawn up a close advisor which not only suggested the TIM spin-off as a possible debt solution option but also recommended that the state buy back part of TI.
The advisor, Angelo Rovati, later resigned, saying he had acted independently and that Prodi knew nothing about his report, even though it was printed on letter-headed paper from the premier's office.
Prodi also insists that he had nothing to do with Rovati's analysis and that he had been kept in the dark by Tronchetti Provera. He repeated this line in a speech to the House on September 28. "During the meetings which TI managers requestedwith me and the government, no mention was made of this plan (the TIM spin-off)... Hence my surprise when I found out about the new strategy," the former European Commission chief told the opposition.
"As for the Rovati report, the government has never examined it let alone helped draw it up. If anyone has any doubts about this, then the resignation and explanations given by Rovati should dispel them," he continued. He defended his handling of the TI case and denied opposition charges that he was meddling in the group's affairs and planning to renationalise it.
The opposition, which is calling for Prodi's resignation, immediately accused the premier of lying to parliament.
TI shares have been hard hit by the affair, together with those of tyre group Pirelli, TI's parent company which is still headed by Tronchetti Provera. TI recovered some ground on Tuesday, rising 1.6% in morning trading to 2.25 euros, while Pirelli climbed 0.8% to 0.68 euros and holding company Camfin, Pirelli's main shareholder, gained 2.14% to 1.43 euros.
TI RECOVERING FROM BUGGING SCANDAL
Pirelli and TI, which is the fifth largest telecoms group in Europe, have also been shaken by a massive bugging scandal. Some 20 people were arrested last month, including TI former head of security Luciano Tavaroli; Pirelli security chief Pierguido Tezzi; the owner of a Florence-based
private investigation firm Polis d'Istinto, Manuele Cipriani; and several police officers.
The bugging ring is accused of gathering illicit data on politicians, businessmen and media figures as well as ordinary Italians but it is not yet known for what ends and for whom. Cipriani, whose Polis d'Istinto has received tens of millions of euros from Pirelli and TI over the past few
years, also had regular contact with members of Italian military intelligence service SISMI, as did Tavaroli.
The government has passed an emergency decree ordering the destruction of all the information gathered illegally by the bugging ring.
Commenting on the scandal to the FT, Tronchetti Provera said an attempt was under way to undermine his and TI's reputation, but he did not say by whom. "This is something which has been organised to attack the image of the company... I will fight for as long as it takes. It will not take long to clarify that there has been manipulation (of the facts). I am convinced that the company will come out of this stronger than before," he told the
financial daily.
