Italian police arrested a nun known for her prison work and 24 other people on Thursday as part of an investigation into the ‘Ndrangheta mafia in the northern city of Brescia, three sources with direct knowledge of the matter told Reuters.

They said Sister Anna Donelli, a volunteer in Milan's San Vittore prison, is suspected of mafia collusion and of acting as a go-between between the criminal group and its jailed gang members.

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The nun, 57, is also well-known for her service in Milan's run-down districts. In February she was one of the recipients of the "Golden Panettone", an annual Milanese civic award.

It was not immediately possible to reach the nun's lawyer for comment.

A police press release said two local politicians were also arrested, and that 1.8 million euros ($1.89 million) had been seized in the operation. The statement did not name any of the people targeted by the raid.

Suspects are accused of various crimes including mafia association, vote buying, illegal possession of weapons, money laundering, loan-sharking, drug dealing and false invoicing, the police statement added.

The alleged gang was connected to the issuance of 12 million euros worth of invoices for non-existent transactions that enabled complicit entrepreneurs to lower their income and evade taxes in return for a commission paid to mobsters.

Originally from the poor southern region of Calabria, the 'Ndrangheta has evolved into Italy's most powerful mafia organisation, and has spread across Europe and the rest of the world, penetrating into so-called white-collar crime.