The “3 percent rule” in Italy

An article in the New York Times highlighted the concept of the “3 percent rule” in Italy. The process occurs when subcontractors overcharge the state by 3 percent, which is then passed on to organized crime groups.

In a trial to convict 22 Mafia members, prosecutors found various incidents of the “3 percent rule” where subcontractors working on a state highway used the process to enrich organized crime.

(Additional types of corruption.)

Source:  Rachel Donadio, “Corruption Is Seen as a Drain on Italy’s South,” New York Times, October 7, 2012.