Italy opens probe into operator of collapsed bridge

World
Europe

Italy's government opened an investigation on Thursday into the country's biggest toll-road operator, hours after saying it could face a heavy fine or lose its concession over a bridge collapse that killed at least 38 people.

A section of the bridge gave way on Tuesday in busy lunchtime traffic, plunging dozens of vehicles 50 meters (160 feet) below and engulfing Autostrade per l'Italia into a political fire storm.

Shares in the operator's parent, Milan-listed international Atlantia (ATL.MI), fell by as much as 25 percent at one point as investors spooked by threats of government retaliation dumped the stock. They closed down around 22 percent at 18.3 euros (20.83 US dollars).

A volunteer distributes coffee to fire fighters at the Morandi motorway bridge site in Genoa, August 16, 2018. /VCG Photo

Shares in other toll-road firms such as SIAS (SIS.MI) and ASTM (ATMI.MI) also fell, after Deputy Prime Minister Luigi Di Maio said the state would have to take over the country's motorways if concession-holders could not do the job properly.

Launching its investigation late on Thursday, the Transport Ministry said it had given Autostrade 15 days to show it had met all its contractual obligations, adding it wanted the company to rebuild the bridge at its own expense.

If the justifications provided by the company were judged inadequate, Rome would consider it a breach of the concession terms.

Earlier Deputy Transport Minister Edoardo Rixi said Autostrade, owned by Italy's Benetton family, could lose its concession as it had failed to ensure the viaduct's safety.

The collapsed Morandi Bridge is seen in the Italian port city of Genoa, August 15, 2018. /VCG Photo

"The options we're looking at are the full revocation, the revocation of just the A10 section or a penalty, but a 150 million euro ($170 million) penalty is too low," Rixi said.

Under the terms of the concession Autostrade can be fined up to 150 million euros.

A government source separately suggested Italy may impose a fine rather than withdraw Autostrade's concession as the latter could involve a long legal fight and risk the government being ordered to pay compensation to the company.

Autostrade says it made regular, thorough safety checks on the 1.2 km-long viaduct, part of a motorway linking the port city of Genoa with southern France, and had used world-leading experts when conducting the tests and inspections.

Italian Prime Minister Giuseppe Conte (C)speaks during a media conference at the prefecture in the Italian port city of Genoa, August 15, 2018. /VCG Photo

Autostrade will hold an extraordinary board meeting on the crisis next week, according to a source close to the matter.

Prosecutors have opened an investigation into the reasons behind the bridge collapse, but have yet to publicly identify the cause.

Italian Prime Minister Giuseppe Conte has declared a state of emergency for Genoa, one of Italy's busiest ports, whose main land corridor with France has effectively been severed.

Genoa's chief prosecutor, Francesco Cozzi, said 10-20 people were still missing.

A state funeral for the victims will take place in Genoa on Saturday, officials said, as the coffins of some of the dead were laid out in a hospital chapel.

Source(s): Reuters