C O N F I D E N T I A L SECTION 01 OF 02 ROME 002660

SIPDIS

E.O. 12958: DECL: 05/31/2007
TAGS: IT MW OPRC PGOV MW OPRC PGOV SR SRIT EUN
SUBJECT: POSSIBLE ITALIAN INDICTMENT OF MONTENEGRIN
PRESIDENT

REF: BELGRADE 1312

CLASSIFIED BY: POL MIN-COUNS THOMAS COUNTRYMAN, 1.5 B AND D


1. (C) SUMMARY: THE APPARENT INTENTION OF THE INDEPENDENT
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ANTI-MAFIA PROSECUTOR TO PROCEED WITH AN INVESTIGATION OF
PRESIDENT DJUKANOVIC IS A NOT UNEXPECTED RESULT OF A
YEARS-LONG PROBE, AND A MASSIVE ONGOING TRIAL, INTO CIGARETTE
SMUGGLING ACROSS THE ADRIATIC. IT IS NOT/NOT, HOWEVER,
MOTIVATED BY ANY POLITICAL INTENTION ON THE PART OF THE
ITALIAN GOVERNMENT. END SUMMARY


2. (U) ITALIAN PRESS HAS REPORTED IN DETAIL ON THE INTENTION
OF THE ANTI-MAFIA PUBLIC PROSECUTOR IN BARI, GIUSEPPE SCELSI,
TO ENTER MONTENEGRIN PRESIDENT DJUKANOVIC ON THE LIST OF
PERSONS UNDER INVESTIGATION ON CHARGES OF MAFIA CONSPIRACY
FOR THE PURPOSE OF INTERNATIONAL TRAFFICKING IN CONTRABAND
CIGARETTES. DETAILS OF THE POTENTIAL INDICTMENT, AS REVEALED
IN AN INTERVIEW WITH CHIEF ANTI-MAFIA PROSECUTOR PIERLUIGI
VIGNA, ARE SIMILAR TO THOSE PREVIOUSLY REVEALED IN ZAGREB'S
"NACIONAL" AND OTHER REGIONAL PUBLICATIONS. THEY INCLUDE:
THE INVOLVEMENT OF THE ITALIAN CRIME SYNDICATES IN THE
REGIONS OF NAPLES (CAMORRA) AND PUGLIA (SACRA CORONA UNITA);
PAYMENT TO DJUKANOVIC BY THE ITALIAN CRIME SYNDICATES OF UP
TO THREE MILLION USD A MONTH; AND LAUNDERING PROCEEDS THROUGH
THE CYPRIOT-BASED COMPANY DULWICH. LEADING TURIN NEWSPAPER
"LA STAMPA" REPORTS THAT SCELSI IS ALSO HUNTING DOWN
DJUKANOVIC'S ASSETS, ISSUING LETTERS ROGATORY SEEKING
INFORMATION ON DJUKANOVIC'S ACCOUNTS TO AUTHORITIES IN CYPRUS
(COMMENT: GOOD LUCK!), SWITZERLAND AND OTHER EUROPEAN
COUNTRIES.


3. (U) ITALIAN PROSECUTORS ARE OBLIGATED BY LAW TO
INVESTIGATE ANY ALLEGATION OF CRIMINAL ACTIVITY THAT THEY
RECEIVE. NORMALLY, A PROSECUTOR WOULD NOT RELEASE THE KIND
OF DETAILS THAT SCELSI HAS UNTIL THE INVESTIGATION HAD TURNED

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UP SIGNIFICANT CORROBORATING DETAIL OF THE ALLEGATION. THE
BARI PROSECUTOR HAS BEEN PURSUING LEGAL ACTION AGAINST
CIGARETTE SMUGGLERS SINCE AT LEAST 1999, FOCUSING ON ITALIAN
CRIME FIGURES AND MULTINATIONAL TOBACCO COMPANIES EVEN MORE
THAN ON MONTENEGRINS. TWENTY-EIGHT PEOPLE HAVE SO FAR
RECEIVED JAIL SENTENCES, ACCORDING TO THE PRESS. ANOTHER 80
SUSPECTS, THE MAJORITY OF THEM ITALIAN, ARE CURRENTLY ON
TRIAL IN BARI. IN ADDITION, THE PROSECUTOR'S TRAIL HAS
PROBABLY BEEN AIDED BY ARRESTS IN THE LAST EIGHTEEN MONTHS OF
LEADING ITALIAN CRIMINALS INVOLVED IN TOBACCO SMUGGLING.


4. (C) THERE ARE CONFLICTING REPORTS AS TO WHETHER OR NOT
SCELSI HAS RECEIVED AN OPINION FROM THE ITALIAN MFA ON
DJUKANOVIC ENJOYING IMMUNITY FROM PROSECUTION. A SOURCE IN
SCELSI'S OFFICE SAID HE HAD TAKEN THIS STEP BEFORE GOING
PUBLIC, BUT THE MFA HAS ISSUED A STRONG DENIAL THAT IT HAD
BEEN CONSULTED OR GIVEN AN OPINION. EMBASSY HAS BEEN UNABLE
TO REACH AN AUTHORITATIVE OFFICIAL OF THE MFA WHO COULD
CONFIRM OR DENY, BUT WE WILL KEEP TRYING.


5. (C) LJUBISA PEROVIC, THE GOM'S REPRESENTATIVE IN ROME, HAS
BEEN BESIEGED BY ITALIAN, SERBIAN AND MONTENEGRIN
JOURNALISTS. HE TOLD POLMC MAY 30 THAT HE WAS FRUSTRATED BY
HIS INABILITY TO GET ANY CONCRETE INFORMATION FROM EITHER THE
MFA OR SCELSI'S OFFICE. (PEROVIC, WHO WAS YUGOSLAV
CONSUL-GENERAL IN BARI FOR FIVE YEARS BEFORE OPENING
MONTENEGRO'S OFFICE IN ROME, DESCRIBED SCELSI AS A "CLOSE
FRIEND AND ADVERSARY.") BY HIS INFORMATION, THE KEY EVIDENCE
AGAINST DJUKANOVIC HAD COME FROM A "PENTITO" (TERM USED FOR
MAFIA SMALL-FRY WHO TESTIFY AGAINST THEIR BOSSES), AN ITALIAN
WHO THE GOM HAD EXTRADITED FROM MONTENEGRO AT GOI REQUEST.
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HE THOUGHT THAT THIS INDIVIDUAL WASN'T ANYONE WHO WAS
ACTUALLY PERSONALLY KNOWN TO DJUKANOVIC, BUT CONCEDED IT WAS
POSSIBLE THAT THE PROSECUTOR HAD OTHER EVIDENCE AS WELL.


6. (C) PEROVIC PROBED FOR ANY INDICATION OF THE MOTIVES FOR
ANNOUNCING THE INVESTIGATION NOW, JUXTAPOSING IT SUCCESSIVELY
WITH: THE ITALIAN PARLIAMENT'S DECISION TO FORM A SPECIAL
COMMITTEE TO INVESTIGATE FORMER FM DINI'S ROLE IN THE SALE OF
SERBIA TELEKOM IN 1997; THE RECENT VISIT OF SERBIAN PM
DJINDJIC TO ROME; DJUKANOVIC'S SUCCESS IN LOCAL ELECTIONS;
AND THIS WEEK'S VISIT TO PODGORICA OF DEPUTY MINISTER OF
FOREIGN TRADE ADOLFO URSO, THE HIGHEST LEVEL GOI VISITOR IN
SOME MONTHS. (JUST BEFORE THE NEW STORY BROKE, BOTH ITALIAN
AND MONTENEGRIN PRESS PROMINENTLY PLAYED URSO'S PARTING
COMMENTS PRAISING MONTENEGRO FOR MEASURES TAKEN TO CURB
ILLEGAL CROSS-BORDER TRADE.) HE ALSO CRITICIZED AT LENGTH
THE FINANCE MINISTER IN THE PREVIOUS GOVERNMENT, OTTAVIANO
DEL TURCO, WHO HAD MADE CRITICISM OF MONTENEGRO A TRADEMARK
OF HIS TENURE AND WAS AGAIN SHOOTING OFF HIS MOUTH. HE NOTED
THAT ITALIAN PRESS CRITICISM OF MONTENEGRO AS A BASE FOR
SMUGGLERS, A STAPLE STORY IN 2000, HAD LARGELY DISAPPEARED.
PEROVIC SAID THAT THIS WAS NOT BECAUSE OF THE CHANGE IN
ITALIAN GOVERNMENT IN MAY 2001, BUT BECAUSE THE PROBLEM HAD
LARGELY BEEN BROUGHT UNDER CONTROL. (COMMENT: IT'S TRUE THAT

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CONFIDENTIAL PTQ4434

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ACTION EUR-00

INFO LOG-00 NP-00 AID-00 CIAE-00 INL-00 DODE-00 SRPP-00
DS-00 FBIE-00 VC-00 H-01 TEDE-00 INR-00 L-00
VCE-00 AC-01 NSAE-00 NSCE-00 OMB-01 OPIC-01 PA-00
PM-00 PRS-00 ACE-00 P-00 SCT-00 SP-00 SSO-00
TRSE-00 USIE-00 PMB-00 DSCC-00 DRL-02 G-00 NFAT-00
SAS-00 SWCI-00 /006W
-------------- B66AFB 311622Z /38
O 311654Z MAY 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 4010
INFO EUROPEAN POLITICAL COLLECTIVE PRIORITY
AMCONSUL NAPLES PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN

C O N F I D E N T I A L SECTION 02 OF 02 ROME 002660

SIPDIS

E.O. 12958: DECL: 05/31/2007
TAGS: IT MW OPRC PGOV MW OPRC PGOV SR SRIT EUN
SUBJECT: POSSIBLE ITALIAN INDICTMENT OF MONTENEGRIN
PRESIDENT

BERLUSCONI'S GOVERNMENT HAS BEEN LESS INTERESTED THAN ITS
PREDECESSOR IN CRITICIZING MONTENEGRO. THE ITALIAN MFA HAS
ALSO TOLD US THAT ALL OF ITS INDICATIONS ARE THAT MONTENEGRO
IS NO LONGER A MAIN SOURCE OF CIGARETTES SMUGGLED INTO
ITALY.) TO ALL OF THESE COMMENTS, POLMC REPLIED THAT THERE
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IS NO REASON TO BELIEVE THAT SCELSI HAD ANY REASON TO BE
INFLUENCED BY "ANTI-MONTENEGRIN CIRCLES" OR TO HAVE A
POSITION ON THE FEDERAL RELATIONS BETWEEN SERBIA AND
MONTENEGRO.


7. (C) COMMENT: IT'S TO BE EXPECTED THAT MANY MONTENEGRINS,
AND NOT A FEW ITALIAN NEWSPAPERS, WOULD SEEK A HIDDEN
SIGNIFICANCE IN THE EXACT TIMING OF THIS NEWS. IT IS ALSO
UNDERSTANDABLE THAT DJUKANOVIC SUPPORTERS (AND EVEN HIS
DETRACTORS) WOULD SEEK TO EXPLAIN THE MOVE AS A POLITICAL
MEASURE RELATED TO ITALY'S DETERMINATION TO KEEP MONTENEGRO
WITHIN YUGOSLAVIA. BUT IT JUST AIN'T TRUE. ITALY'S
PROSECUTORS, AS WE'VE REPORTED PREVIOUSLY, ARE EVEN MORE
AUTONOMOUS THAN THEIR US COUNTERPARTS; THEY LITERALLY ANSWER
TO NO ONE. THE INABILITY OF THE GOVERNMENT TO INFLUENCE HOW
AND WHO THE PROSECUTORS CHOOSE TO INVESTIGATE HAS BEEN A
CONSTANT ANNOYANCE TO PRIME MINISTER BERLUSCONI, WHO HAS
FACED A SERIES OF INVESTIGATIONS, INICTMENTS AND TRIALS
LASTING RIGHT UP TO TODAY. ECAUSE OF ITS HISTORY, ITALY HAS
GIVEN THE SPECIL ANTI-MAFIA PROSECUTORS EVEN MORE PROCEDURAL
LEEWAY IN INVESTIGATION AND PROSECUTION OF ORGANIZED CRIME
ACTIVITY. NOR IS IT LIKELY THAT A FIGURE NOW IN THE
OPPOSITION (DINI OR DEL TURCO) WOULD HAVE A MOTIVE (LINGERING
SYMPATHY FOR MILOSEVIC?!) TO TAKE THE RISK OF PUSHING THE
PROSECUTOR TO GO PUBLIC. ONE TYPE OF POLITICAL MOTIVE CANNOT
BE RULED OUT: THE AMBITION OF A PROSECUTOR TO MAKE A NAME FOR
HIMSELF. EVEN WITH THAT POSSIBILITY, THIS CASE IS VERY MUCH
WHAT IT APPEARS TO BE: A COMPLEX, LONG-TERM, ANTI-MAFIA
INVESTIGATION MOVING GRADUALLY UPWARD FROM LOWER TO HIGHER
LEVEL. END COMMENT
DEAN
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2002ROME02660 - Classification: CONFIDENTIAL