By . Chris Pleasance . Giorgio Orsoni, 67, is reported to be under house arrested charged with funding foreign political parties . The mayor of Venice is among 35 people arrested after a multi-billion pound project to stop the city from flooding was hit by an anti-corruption probe. Mayor Giorgio Orsoni, 67, is under house arrest, accused of illegally financing political parties. Authorities say 20million euros (£16million) was diverted to overseas bank accounts and used to fund foreign parties. According to the BBC, the corruption took place during the tender process to build the so-called Moses barriers. The £4billion Moses project involves building more than a mile of barriers to seal off Venice lagoon in the event of high tides or flooding. The project was first put forward in 1966 but the barriers only started being built 11 years ago, and the first was installed last year after delays and financial problems during Italy's economic crash. Italian financial police confirmed that Giorgio Orsoni had been arrested and the ANSA news agency said he was being investigated for alleged corruption, extortion and money laundering. Prosecutors Luigi Delpino and Carlo Nordio said: 'The investigation shows that a great portion of the funds was used to finance political forces at the city, regional and national level, and corrupt high-level public officials.' A spokeswoman for the Venice city government had no immediate comment, and centre-left mayor Giorgio Orsoni's spokesman did not respond to phone calls. The arrests were the result of a . three-year investigation that led to the arrest last summer of the head . of the consortium building the ambitious but long-delayed system of . so-called Moses barriers. It is the latest in a series of Italian bribery investigations involving high-profile public works projects. A series of unrelated corruption . investigations, mostly involving bribery or embezzlement accusations, . have implicated former high-ranking government ministers in recent . months. The £4billion Moses project involves around a mile of barriers being built to seal off three entrances to the lagoon in the event of high tides and flooding . Investigations have revolved around some of the biggest Italian public works projects including the Milan world's fair, Expo 2015, and an Italian-funded water project in Iraq. Most recently, a former interior minister was accused of helping a businessman flee Italy to escape a Mafia association sentence. The string of arrests has prompted comparisons to the Clean Hands anti-corruption investigations of the 1990s that toppled an entire political class. The one clear difference this time is that the alleged bribery involves individuals from across the political spectrum rather than political parties enriching themselves. The latest arrests put more pressure on Premier Matteo Renzi to take action, after his appointment of an anti-corruption czar earlier this year. Over the weekend, the European Commission flagged the deep-rooted problem of corruption as an issue hampering investment and economic renewal in Italy, which ranked 69th in Transparency International's perceived level of public sector corruption last year - behind Montenegro and just ahead of Kuwait.
Giogio Orsoni, 67, among 35 people arrested over allegations of corruption .
Prosecutors say £16million was diverted to pay foreign political parties .
Corruption is linked to multi-billion pound project to stop Venice flooding .
By . Chris Pleasance . Giorgio Orsoni, 67, is reported to be under house arrested charged with funding foreign political parties . The mayor of Venice is among 35 people arrested after a multi-billion pound project to stop the city from flooding was hit by an anti-corruption probe. Mayor Giorgio Orsoni, 67, is under house arrest, accused of illegally financing political parties. Authorities say 20million euros (£16million) was diverted to overseas bank accounts and used to fund foreign parties. According to the BBC, the corruption took place during the tender process to build the so-called Moses barriers. The £4billion Moses project involves building more than a mile of barriers to seal off Venice lagoon in the event of high tides or flooding. The project was first put forward in 1966 but the barriers only started being built 11 years ago, and the first was installed last year after delays and financial problems during Italy's economic crash. Italian financial police confirmed that Giorgio Orsoni had been arrested and the ANSA news agency said he was being investigated for alleged corruption, extortion and money laundering. Prosecutors Luigi Delpino and Carlo Nordio said: 'The investigation shows that a great portion of the funds was used to finance political forces at the city, regional and national level, and corrupt high-level public officials.' A spokeswoman for the Venice city government had no immediate comment, and centre-left mayor Giorgio Orsoni's spokesman did not respond to phone calls. The arrests were the result of a . three-year investigation that led to the arrest last summer of the head . of the consortium building the ambitious but long-delayed system of . so-called Moses barriers. It is the latest in a series of Italian bribery investigations involving high-profile public works projects. A series of unrelated corruption . investigations, mostly involving bribery or embezzlement accusations, . have implicated former high-ranking government ministers in recent . months. The £4billion Moses project involves around a mile of barriers being built to seal off three entrances to the lagoon in the event of high tides and flooding . Investigations have revolved around some of the biggest Italian public works projects including the Milan world's fair, Expo 2015, and an Italian-funded water project in Iraq. Most recently, a former interior minister was accused of helping a businessman flee Italy to escape a Mafia association sentence. The string of arrests has prompted comparisons to the Clean Hands anti-corruption investigations of the 1990s that toppled an entire political class. The one clear difference this time is that the alleged bribery involves individuals from across the political spectrum rather than political parties enriching themselves. The latest arrests put more pressure on Premier Matteo Renzi to take action, after his appointment of an anti-corruption czar earlier this year. Over the weekend, the European Commission flagged the deep-rooted problem of corruption as an issue hampering investment and economic renewal in Italy, which ranked 69th in Transparency International's perceived level of public sector corruption last year - behind Montenegro and just ahead of Kuwait.
By . Chris Pleasance . Giorgio Orsoni, 67, is funding foreign political parties . The mayor of Venice is among 35 people arrested after a multi-billion pound project to stop the city from Authorities say 20million euros (£16million) was