SUBJECT: information related to obligations under Article 30, paragraph 2, Regulation (EC) no. 834/2007, about irregularities found on organic products issuing from Ukraine, Moldova, Kazakhstan, India, Romania and Malta.
At the last SCOF meeting the Italian delegation provided some information about Vertical Bio, an operation conducted jointly by ICQRF, the Central Inspectorate for Quality Protection and Repression of Agri-Food Frauds and by the Guardia di Finanza (Financial Police) of Pesaro, empowered by the Attorney-General’s Office of Pesaro.
The operation "Vertical bio" is a complex Criminal Police activity representing the development and continuation of the judicial surveys carried out as part of the operation "Green War", undertaken in April 2013.
In this respect, we would like to point out that the investigations conducted by the Judicial Authority are still in progress and therefore subject to the investigation secrecy. However, upon request of ICQRF, the Judicial Authority issued a special clearance to the dissemination of certain information in order to comply with the reporting obligations foreseen by the existing legislation for the organic sector .
On this basis, ICQRF sent the following information with a specific note (Register no. 3494 of 27 February 2014).
The investigations highlighted that the operators involved had put in place a system of certification and trade of organic products able at creating a series of frauds of huge proportions on the market. The fraudulent activity was related to imports from Third Countries or intra-Community supplies of grains (legumes, cereals, oil-seeds and other industrial products ) intended for processing and foodstuff for human and /or domestic animals consumption.
The products covered by the investigation were issuing from different countries : Moldova, Ukraine, Kazakhstan and India, directly towards Italy or through Malta, Slovenia and Romania.
By examining the information and documentation acquired by the Judicial Authority, not available to our Directorate-general (DG), there was evidence of a conflict of interests among Control Bodies operating abroad. As investigation on the case showed, the Control Bodies directly involved, only for the activities carried out in the above mentioned Third Countries, are: Suolo e Salute s.r.l. (through its foreign offices listed in Annex 1); Biozoo s.r.l. (based in Sassari, Italy); and the ICS Biozoo s.r.l. (based in Moldova).
The certification system of the foreign offices was set up in order to allow for adjustments and forgeries of documents and, to this purpose, the Judicial Authority is evaluating further measures to be taken towards the mentioned foreign offices.
Concerning the certification activities carried out in the Moldovan, Ukrainian and Kazakh territories by ICS Biozoo s.r.l., we believe important to point out that the “certified” holdings migrated, after the issuance of special discharges in 2012 and 2013, from Suolo e Salute s.r.l. (headquarters operating in Transnistria) initially to Biozoo s.r.l., and after to ICS Biozoo s.r.l., (headquarters operating in Moldova) .
The foreign companies involved in the illegal trafficking of organic agricultural products were first included in the certification system run by Suolo e Salute s.r.l. (foreign office), which de facto promoted in favor of Biozoo s.r.l the transit of foreign operators connected to the chains directly controlled by the Italian crooked importers.
Batches of irregular goods were reported by our DG through the OFIS system: INTC00025, 30 and 31 towards India, INTC0002 towards Ukraine, no. 713 towards Malta and no. 619 towards Romania. Further OFIS notification will be open as soon as the Criminal Investigation Department will send information about further irregular batches.
Given the above arguments, it is in our opinion important to point out the possible risk associated with the phenomenon and the situation reported above, providing here below the list of those foreign operators whose agricultural products, intended for domestic consumptions, were found with evident irregularities in 2013:
a) S.C. JustOrganic s.r.l. based in Tulcea (Romania) , already reported in OFIS, certified by SC Cert Organic s.r.l. based in Bacau ( Romania ), recently revoked by the Romanian authorities .
In this respect, we point out that in the course of the investigation activities, under investigation secrecy, 126 tons of organic wheat stored at the importer Romani S.p.A. of San Giorgio Piacentino (Piacenza) were impounded on 29 January 2014;
b) SC Meridian s.r.l. (Romania)
In the course of the investigation activities, under investigation secrecy, on January 2013 135 tons of soybeans from organic farming found contaminated with Glyphosate were delivered to Romani S.p.A. of San Giorgio Piacentino (Piacenza);
c) Raj Food International (India) certified by Biocert India, already reported in OFIS;
d) Harit Impex (India) certified by Biocert India, already reported in OFIS;
e) Geo Fresh Organics Ltd (India).
Furthermore, we consider appropriate to inform you about those foreign companies that, on the basis of investigations conducted by the Judicial Authority, marketed in previous years (2007-2012) potentially irregular organic agricultural products, which were not presenting the correct requirements following the regulations in force, and vis-à-vis of whom, therefore, it is important to maintain an appropriate level of risk:
f) Agroidea s.r.l. (Republic of Moldova), first certified by Suolo e Salute s.r.l. and, from 1 July 2010, by Biozoo s.r.l. and, finally, by ICS Biozoo s.r.l;
g) Im Agricereal s.r.l. (Republic of Moldova), first certified by ICS Biozoo s.r.l.; the company terminated its activity on 17 March 2011, it was then replaced by Im Project agro s.r.l. (Republic of Moldova), certified by ICS Biozoo s.r.l.;
h) Orom Imexpo s.r.l. (Republic of Moldova), certified by ICS Biozoo s.r.l.;
i) Tutum s.r.l. (Republic of Moldova), first certified by Suolo e Salute s.r.l. (Republic of Moldova) and after by ICS Biozoo s.r.l.;
l) Chateau Varteley (Republic of Moldova), certified by ICS Biozoo s.r.l.;
m) Hendrix plus Ldt e Hendrix Enterprises Ldt (Republic of Moldova), certified by Suolo e Salute s.r.l. and consolidated at a later stage in Im Agricereal s.r.l., certified by ICS Biozoo s.r.l.;
n) Rusagro s.r.l. (Republic of Moldova), first certified by Suolo e Salute s.r.l. (Republic of Moldova) and after by ICS Biozoo s.r.l.;
o) Antas I s.r.l. (Ukraine), certified by Suolo e Salute s.r.l.; the company terminated its activity in the year 2013 and was repalced by the company Kabis s.r.l. certified by ICS Biozoo s.r.l.;
p) SC Agribioalimentare s.r.l. (Romania), certified by Bios s.r.l.;
q) Bozzòla Trading s.r.l. (Romania) changed into Lenter Trading;
r) Interbio srl (Romania);
s) SC Agrobio Comert Delta Dunari s.r.l. (Romania);
t) Geco Ltd (Kazakhstan);
u) Delva Corporation Ltd import/export (Malta) certified by the Maltese Control Body MCCA .
The certifications of the Control Body “ICS Biozoo srl” (Moldova) were indicated by the investigations as unreliable. Since “ICS Biozoo srl” is accredited by the Moldovan Accreditation Body and recognized by the Republic of Moldova’s Ministry of Agriculture, we do not have further information.
The above mentioned foreign companies marketed organic products, at different times, from 2007 to 2013, to Italian companies, at present suspended by their Control Bodies, found as well involved in the operation "Vertical bio". They are the following :
a) Fa.zoo. Mangimi s.r.l. of Pesaro, certified by Suolo e Salute s.r.l. of Fano (Pesaro-Urbino);
b) Bozzòla S.p.A. of Casaleone (Verona), certified by ICEA - Istituto per la Certificazione Etica ed Ambientale of Bologna and withdrawn from the list of importers already in 2011;
c) Romani S.p.A. of San Giorgio Piacentino (Piacenza), certified by QCertificazioni s.r.l. of Monteriggioni (Siena);
d) F.lli Grimaldi & C. s.n.c. of Guglionesi (Campobasso) certified by Suolo e Salute s.r.l. of Fano (Pesaro-Urbino).
It is important to emphasize that the complex system of fraud was disclosed only through the use of complex info-investigative systems (including, for example, wire tapping), in the absence of which all ordinary activities of administrative control or supervision, undertaken annually by Certification Bodies, could have been unable to bring up to the light the real dimensions of the phenomenon.
Taking into account the requirements of confidentiality due to not invalidate investigations underway, we will be pleased to provide you with further details and information on the issue as soon as they will become available.
Sincerely yours
Emilio Gatto
Director-General
