FOREIGN workers building a sprawling $350 million (£257m) US consulate in Milan were paid less than $2 (£1.47) an hour after being promised fair wages, it was reported today.
 

The exploitation of the workers was brought to light by an Associated Press investigation, which drew on interviews with five former employees and a review of their employment letters and pay stubs.
 

Italian prosecutors are investigating Montgomery, Alabama-based Caddell Construction, a major builder of US diplomatic missions. 
 

Two of its managers in Italy were arrested this month on suspicion of labour exploitation, one while boarding a flight to leave the country and another planning to flee, prosecutors said.
 

The consulate probe was launched about six months ago and involves some 70 workers, mostly from India. 

Prosecutors allege Caddell illegally deducted room and board from wages and forced them to work 10-hour days, six days a week. 
 

Some were paid as little as €500 (less than £426) monthly after room and board were deducted, prosecutors said.
 

Caddell and the US State Department said they are investigating the allegations and co-operating with Italian authorities.
 

More than a decade ago, Caddell paid millions to the US government to settle allegations that it made false claims to gain access to government incentives.