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