Italian Minister of Economic Development Luigi Di Maio has started an enquiry into the bidding process for Italian steelmaker Ilva, Kallanish learns from the ministry. The probe could result in the “…possible cancellation of the tender award,” which went to ArcelorMittal, the ministry says.

As reported, earlier this month Di Maio raised concerns within the steel industry when he publicly attacked his predecessor and the way the bidding process was managed.

“Following internal checks on the Ilva dossier and the opinion provided by the (country’s anti-corruption body) Autorita’ Nazionale Anticorruzione (Anac), there exist the conditions to start an administrative procedure aimed at the possible cancellation of the tender award in compliance with the decree of 5 June 2017,” Di Maio says. “This lawful procedure will last 30 days and it is a necessary action to ascertain facts as a result of the crucial issues that have emerged."

Di Maio was due to meet the top management of ArcelorMittal on Wednesday to further discuss their updated acquisition proposal for Ilva.

Last week Anac sent the economic development ministry an official letter in which it highlighted the mistakes and unlawful actions made during the tender procedure.

Earlier this week ArcelorMittal reiterated its commitments for Ilva after local authorities officially asked the company to review its post-acquisition staff and environmental plans. The new Italian government postponed the deadline for closing ArcelorMittal’s acquisition of Ilva until mid-September (see Kallanish 10 July).

In a note sent to Kallanish earlier this week ArcelorMittal said that it “…participated in good faith for the past four years in the tender process run by the Ilva commissioners under the supervision of the Italian Government. Within this process, our company has clearly and transparently followed all of the necessary steps as required by Italian and European law in agreeing and signing its binding contract for the acquisition of Ilva.”