Italy loosens court control over public tenders, amid protests

By Gavin Jones

ROME, Dec 27 (Reuters) - Italy's parliament on Saturday approved a reform that loosens controls and sanctions regarding public tenders, amid protests from magistrates and opposition lawmakers who say it will encourage wasteful spending and possible illegality.

The reform, presented by Giorgia Meloni's coalition two years ago, limits the powers of Italy's powerful court of auditors, responsible for ensuring compliance with Italian and European Union rules on the use of public funds.

Meloni's right-wing government has clashed frequently with various branches of Italy's judiciary, accusing judges of leftist bias and hampering its initiatives on areas from public works to immigration.

Just two months ago the auditors' court refused to authorise a landmark government plan to build a bridge connecting Sicily to the mainland, a ruling denounced by Meloni as "intolerable interference."

The bill was passed in the upper house Senate on Saturday by 93 votes to 51.

Among the changes introduced, it stipulates that the maximum penalty for administrators who are negligent in the use of public money cannot exceed 30% of the loss caused by their actions, or the equivalent of two years of their salary.

The bill also contains a "silence means consent" clause by which if an administrator requests the court's opinion on a spending authorisation, it must reply within 30 days or else the authorisation is deemed valid and the administrator is shielded from any future sanctions.

The government says the changes will help the economy by speeding up procedures and overcoming a widespread hesitation among politicians to sign off on public works for fear of running foul of the auditors' court.

Members of the court and opposition lawmakers have warned it will lead to wasteful spending and possible malfeasance.

Alfredo Bazoli, a Democratic Party senator, said it showed the government aimed to "demolish controls on those with power."

The reform comes ahead of a more sweeping and contentious overhaul of Italy's justice system to separate the career paths of prosecutors and judges, a move the government says will curb conflict of interest between the two groups and political bias.

That reform faces a national referendum in the spring.

(editing by Alexandra Hudson)