Italy Arms Firm Denies Sales To Iraq

Newspapers on Sunday published transcripts of wiretaps which investigators believe point to illegal arms trafficking to a number of countries including Iraq and Bosnia.

As regards the supply of arms to foreign countries under UN embargoes, such as Bosnia, the company rules out ever having furnished supplies of any kind, the company, Oto Melara, said. Oto Melara is a unit of state-owned engineering and aerospace group Finmeccanica.

Its managing director Pier Francesco Guarguaglini was arrested last week in a corruption probe sparked by the arrest on September 15 of the chief of Italy's state railway, Lorenzo Necci.

A judge on Monday rejected a request by lawyers to free the Ferrovie dello Stato managing director, ruling he must remain in jail while the case continues.