By Mario Gerevini, Fabrizio Massareo, Sezioni, December 6, 2019

Investments in Malta involving capital held by the Vatican’s Secretariat of State – in real estate, mineral water and websites – have led to investigations by Holy See prosecutors. At the heart of the operations is the Centurion investment fund, based in Valletta.

Vatican invested in Lapo Elkann and Elton John film “Rocket Man.”

Finance moves in mysterious ways, and one of them links the Vatican to the island of Malta. It has emerged that in February, through a fund based in Valletta, the Secretariat of State became a partner in Lapo Elkann’s eyewear and “lifestyle products” company, Italia Independent. Another €10 million deal went through on 30 September with Enrico Preziosi, games industrialist and chairman of Genoa. And over €4 million went to finance the production of films such as the latest “Men in Black” and the biography of Elton John, “Rocketman”. These are just some of the many investments made using the offerings of the faithful to Peter’s Pence, but there are others, and the situation is now being examined by the Papal judiciary.

And over €4 million went to finance the production of films such as the latest “Men in Black” and the biography of Elton John, “Rocketman”. These are just some of the many investments made using the offerings of the faithful to Peter’s Pence, but there are others, and the situation is now being examined by the Papal judiciary.

Malta and the banker

At 259 St Paul Street in Valletta, a stone’s throw from Pizzeria Vecchia Taranto, there is the headquarters of the Centurion Global Fund. At least two-thirds of the capital entrusted to it, according to various and reliable sources, comes from the Secretariat of State, in other words the Vatican’s most important department, and the one closest to Pope Francis. The fund manager is an Italian resident in Switzerland, Enrico Crasso, 71 years old. A former banker at Credit Suisse, and owner in Lugano of Sogenel Holding, which is a reference point for many financial transactions, he has managed the Vatican coffers for years. For this he has received numerous formal letters of thanks from the Secretariat of State and has been awarded a gold medal of merit by the pope, not to mention millions of euros in commissions. For some months now, inside the Vatican walls, his reputation has begun to show signs of tarnishing. But in Malta he is still the one who decides where to invest the Pope’s money.

Lapo’s glasses

With the Centurion fund, Crasso has raised around €70 million, piloting this towards real estate, bonds, shares and other funds. These are not always liquid assets, not always safe investments and are sometimes nothing short of speculative. One that particularly stands out is the stake in Lapo Elkann’s company, Italia Independent. The Maltese fund with Vatican capital has underwritten new shares at €2.35, thus holding a 25% stake with €6 million, and Crasso has joined the board. Centurion has just decided to inject even more capital, despite a share price of €1.7 on the stock exchange. Currently, the deal looks like a loss.

Investments by Preziosi

In September, a few days before the scandal burst over the purchase of the Sloane Avenue building in London – an operation orchestrated by the financier Raffaele Mincione in which Crasso had a central role – the Secretariat finalized the Preziosi dossier. For €10 million Centurion would acquire 14% of New Deal, a company to which Enrico Preziosi had just transferred 11.7% of Giochi Preziosi. It is as if Centurion were acquiring 1.67% of the toy group. The transfer was made from Banca Zarattini in Switzerland, on 30 September, and included the following clause: “The seller [i.e. Preziosi, Ed.] will take steps … to have Preziosi listed on the stock exchange by 31 December 2020 in order to allow the company to benefit from the proceeds of the operation”. Put like that, it looks like a loan. But what if it isn’t placed on the stock exchange?

Gas, electricity and water

Crasso also has his eyes on water. Centurion invested €4.7 million in the vehicle Cristallina Holding which took over Acqua Pejo and Goccia di Carnia, together with other Italian partners such as the holding company of the Borromeo family. But the new economy is not neglected either. In October 2018 Centurion acquired 10% of Abbassalebollette, a start-up that offers internet services to save on electricity and gas bills: turnover of €60,000 in 2018 and losses of €39,000. Price for the stake? About €1.27 million. If it goes wrong, in the Vatican they will be able to ask for explanations from the president of SNAM, Luca Dal Fabbro, who has important contacts in the papal secretariat. Abbasalebollette belongs to his family.

Real estate and bonds

Then there is real estate. For €16 million Centurion took over the Italian headquarters of the Swiss-Swedish giant ABB. Today it is the fund’s largest investment. Another €4.5 million went on the bonds of a small Roman company, Bdm Costruzioni e Appalti of the Marronaro family, which is thought to have used it to take over Immobiliare Grotta 1973 owned by the Ceribelli-Barluzzi families.

At the end of 2018 the fund had lost 4.61%. That’s about €2 million. And most of that ended up in executives’ pockets by way of commissions. Peter’s Pence the other way round.

At a loss

What’s behind these operations? And what’s the relationship between the Secretariat and the vehicles of Crasso, Centurion and Sogenel? “Investigations are in progress, and lines of enquiry which may help clarify the position of the Holy See with respect to the aforementioned funds and any others, are currently being examined by the Vatican judiciary, in collaboration with the competent authorities,” a press release from the Vatican Press Office stated. Contacted by the Corriere, Crasso declined to comment. But have all these alternative investments performed? Not exactly. At the end of 2018 the fund had lost 4.61%. That’s about €2 million. And most of that ended up in executives’ pockets by way of commissions. Peter’s Pence the other way round.

This article first appeared HERE.