Jowell Denies Fault Over Berlusconi Scandal

The culture secretary, Tessa Jowell, today denied breaking the ministerial code over her husband’s involvement in an alleged bribery scandal related to the Italian prime minister, Silvio Berlusconi.

The prime minister, Tony Blair, will have to defend her today at a joint press appearance with Ms Jowell to publicize a gender parity pay report.

Ms Jowell is also waiting to find out if the cabinet secretary, Sir Gus O’Donnell, will acquiesce to Conservative demands for an inquiry into the affair.

Door stepped by journalists as she left her London home this morning, Ms Jowell was defiant, saying: "I am absolutely happy that everything has been done properly and that there was no conflict of interest."

Asked if she thought there should be an inquiry into the matter, she said someone had to tell her what she had done wrong first.

Ms Jowell was defended by fellow minister Harriet Harman, who demanded an end to the "witch hunt" against her colleague.

Tory MPs are thought likely to raise questions in parliament over Ms Jowell’s decision to co-sign a mortgage application on the £700,000 home in north London which she jointly owns with husband David Mills, an international lawyer.

Mr. Mills has been embroiled for years in investigations and court cases relating to the complex financial affairs of the Italian Prime Minister, Silvio Berlusconi.

He is currently under investigation over allegations - which he denies - that he received a bribe of around £350,000 in return for helpful testimony at an earlier corruption trial.

A document published in the Sunday Times yesterday showed that Ms Jowell signed a mortgage application in September 2000, which raised around £400,000 against the security of the Kentish Town home she jointly owns with her husband.

In a letter leaked from the Italian investigation, Mr. Mills reportedly stated that he invested the money from this loan, before paying off the mortgage with £350,000 which had been placed in a hedge fund for his use by "the B people".

In a statement yesterday, Ms Jowell said: "I signed a charge over our jointly-owned home to support a loan made to my husband alone by his bank.

"I am satisfied that no conflict of interest arose out of this transaction in relation to my ministerial duties.

"As is standard practice in relation to legal proceedings, it would be inappropriate for me to comment further."

The shadow Commons leader, Theresa May, has asked Sir Gus to rule on whether Ms Jowell breached the ministerial code - although Mr Blair is ultimately responsible for deciding whether colleagues have overstepped the mark.

Liberal Democrat peer Lord Goodhart said today that a minister was not personally responsible for the conduct of his or her spouse.

"Tessa Jowell will only be in trouble over this if it turns out that she has been in some way involved in any misbehavior by her husband," he said.

The former member of the committee on standards in public life told BBC Radio 4’s Today program: "If it (the money) was obtained improperly, if it was a bribe of some kind, and if Tessa Jowell knew about it, then I think there are problems. But not if not."

Ms Harman told the Today program: "Tessa Jowell says she has abided to the letter and the spirit of [the ministerial code]. No doubt, of course, she will answer any questions that are put to her.

"But I do think in the meantime there shouldn’t be a witch hunt, somehow sort of smearing and innuendo. She should be allowed to get on with her job, which she does very well indeed."