Finance Police seized documentation at the offices of Turin Winter Olympics organizing committee TOROC Friday, less than a month before the Games begin.
The investigation is reportedly trying to establish whether alleged irregularities in TOROC's business relations with a number of companies are behind the committee's budget deficit.
The Turin prosecutor's office, which issued the search warrants, also questioned a number of TOROC directors. Finance Police officers raided sites in Rome, Milan, Brescia and Imola as well.
TOROC has been dogged by a series of financial headaches and is currently wrestling with a deficit thought to be in the region 41 million euros. Problems with the shortfall meant that earlier this week TOROC had to postpone final approval of its budget until Monday.
The police are also said to be investigating tax payments relating to contracts with US experts employed in the organization of the Games. "There is no call for alarm, we have always guaranteed magistrates the maximum level of cooperation," said TOROC President Valentino Castellani Friday.
"What happened today is not a new development. It concerns the acquisition of material as part of a probe that started in the past.
"I realize this may make a splash because it took place today, with less than a month to go to the Games, but we are not worried."
Turin and its surrounding mountains play host to the Winter Olympics February 10-26 and the Winter Paralympics March 10-19. TOROC's offices have been searched previously by police as part of corruption probes - in March last year and in
November 2003. The organizing committee is not having the easiest run-up to the Winter Olympics.
Tickets sales have not been as brisk as hoped and some foreign newspapers have suggested this is a sign of a lack of enthusiasm on the Italian public's part. Organizers have denied the public is lukewarm and stressed that Italians do not tend to buy tickets for sporting events a long time in advance. They expect a last-minute box-office rush.
TOROC and the Italian Olympic Committee CONI are also trying to resolve problems caused by Italy's strict anti-doping laws, according to which doping is a criminal offence.
The International Olympic Committee is concerned about the prospect of athletes facing criminal charges and wants exclusive control of drug checks during the Games. The Italian Health Ministry, however, has refused to suspend implementation of the doping laws for the duration of the Olympics and has insisted the authorities will also carry out their own drug tests.
On the bright side, the Olympic facilities are ready and look impressive and Italy's athletes are performing well in the run-up to the Games. Slalom skier Giorgio Rocca's four consecutive World Cup wins, in particular, have done a lot to raise hopes of a high Azzurri medal tally.
