Italy earthquake: L'Aquila EU relief funds 'misused' 4 November 2013 Last updated at 17:12 A special EU inquiry has criticised what it called the misuse of EU funds intended to help rebuild the Italian city of L'Aquila, which was devastated by an earthquake in 2009. The EU had made available 493,700 euros (£418,000: $666,000) for the region from its Solidarity Fund. But the report said there were serious allegations some of that money went to contractors linked to organised crime. More than 300 were killed in the quake and some 10,000 buildings damaged. In the report, EU rapporteur Soren Bo Sondergaard said there were serious allegations that part of the money spent on building new accommodation for the quake's victims was paid to companies with "direct or indirect ties" to organised crime. He also criticised as dangerous and unhealthy some of the new accommodation built in the town. He added "wanted criminals" were found at a factory run by one of the contractors. Much of the rapporteur's criticism is directed at the European Union Commission in Brussels, says the BBC's Alan Johnston in Rome. Mr Sondergaard said it should have been much more diligent in its efforts to ensure that EU taxpayers' money was better spent. There have been building projects on the town's outskirts to house victims of the quake, but reconstruction has barely begun in the town, our correspondent says. The historic centre of L'Aquila is a ghost town; its squares and alleyways are deserted, while damaged medieval buildings are being propped up on steel supports, he adds. The report is also scathing about the cost and the quality of some of the new accommodation. Dozens of families had to be evacuated because their homes were "dangerous and unhealthy," it says. One accommodation area caught fire because of a faulty electrical system; and there have been problems with sewers, water pipes and cracking walls. Regarding the quality of houses, Massimo Cialente, mayor of L'Aquila, told the BBC: "Some of the houses built have never-ending issues and we spend lots of money repairing them." But on the subject of whether funds were misused, Mr Cialente said: "I am inclined to exclude the possibility." There was lots of attention from judges and anti-Mafia prosecutors to prevent this from happening. We will have to wait for the court documents.