Construction of the new U.S.. Consulate in Milan, a €350 million venture, has been clouded by accusations that workers were paid less than €2 an hour despite contracts promising far higher wages. Italian prosecutors say about 70 foreign laborers, mainly from India and Kenya, were forced into 10‑hour days, six days a week, with room‑and‑board deductions driving monthly pay down to €500.

Arrests of Two Caddell Managers Trigger Probe Expansion

Two managers from the subcontractor Caddell were detained this month – one caught while boarding a flight out of Italy and another arrested while allegedly planning to flee, prosecutors reported. their arrests come as the investigation,launched six months ago, widens to cover the entire workforce on the site.

Pay Slips Reveal €1.55 Hourly Rate Versus Promised €2,500 Salary

An Indian electrician presented a pay slip showing an hourly wage of €1 .55 (about $1.80) and a net monthly income of roughly €500 after deductions, far below the €2,500 salary promised in his employment leter. Similar discrepancies were reported by four Kenyan workers who were shown letters on Caddell stationery promising annual pay of €25,000, yet received far less.

State Department and Caddell Claim Full Cooperation

The U.S. State Department said it is investigating the allegations and that U.S. law‑enforcement agencies are working with Italian authorities. Caddell issued a statement saying it is “fully cooperating” and conducting a “comprehensive inquiry” to ensure all global subcontractors meet labor standards.

Unanswered Questions About Contractor Oversight and Past Settlements

Key gaps remain: how did the alleged wage deductions escape earlier audits, and what role did the State Department’s procurement oversight play? Additionally, Caddell’s history of paying millions to settle false‑claim accusations raises concerns about its compliance culture, but prosecutors have not linked that case to the current probe.