Italian supermarket chain used Malta to cover multi-million fiscal fraud

Italian authorities have launched an investigation into alleged fiscal fraud committed by supermarket chain ‘Conad’ by using Malta as its phantom destination for food exports.

According to inquiring magistrate Francesco Puleio, the ‘Conad Sicilia’ supermarket chain committed the fraud brom 2007 to 2009, by falsely declaring exports of €20 million in food stuffs to Malta when in fact the products were re-routed back onto the Sicilian markets.

It is estimated that more than €4 million in VAT contributions were evaded to the detriment of the Italian government.

Addressing the media in Catania, Francesco Puleio said that Conad Sicilia had operated the fraud through the Modica distribution warehouses, by issuing false invoices to fictitious companies with addresses in Malta as the receivers of such merchandise.

At least two board members of Conad Sicilia have been placed under formal investigation over the issue, while the company has rebutted the claims by saying that it has fallen “victim to a scam.”