Key suspect in EU graft scandal cuts deal with prosecutors

A key suspect in a spreading EU graft scandal, former Italian MEP Pier Antonio Panzeri, has cut a deal to divulge information about countries involved and bribes made, Belgian prosecutors said Tuesday.

In return, he was being offered a "limited sentence" that includes imprisonment, a fine and confiscation of one million euros ($1.1 million) in assets, the prosecutors said in a statement.

The development was a dramatic turn in the corruption scandal in which prosecutors suspect Qatar and Morocco funnelled bribes through Panzeri and other figures to influence decisions in the European Parliament.Qatar has denied any wrongdoing and Morocco has accused the media of making unjustified "attacks".

The allegations have roiled the parliament and sparked unease in other EU institutions, with concerns voiced that their public credibility could be shaken.

Panzeri is one of four suspects in pre-trial detention in Belgium following police raids on addresses last month that turned up 1.5 million euros in cash.

The searches were conducted in the homes and offices of MEPs, former MEPs, parliamentary aides, and the heads of NGOs that dealt with the parliament.

All four suspects are being held on charges of "criminal organisation, corruption and money laundering". The other three are: Greek MEP Eva Kaili, stripped of her position as one of the parliament's 14 vice presidents after her arrest; her Italian boyfriend Francesco Giorgi, a parliamentary aide; and Niccolo Figa-Talamanca, the Italian head of an NGO.- Under surveillance -Panzeri, a 67-year-old former lawmaker, heads another NGO suspected of receiving money from certain countries to pay serving MEPs to sway parliamentary decision-making on issues important to those countries.