Berlusconi faces new inquiry

ITALY: Controversial Italian prime minister Silvio Berlusconi may be set for another round in his continuing battle with the…

ITALY: Controversial Italian prime minister Silvio Berlusconi may be set for another round in his continuing battle with the judiciary following newspaper reports yesterday that Milan-based magistrates are due to seek his indictment for bribery of a witness in a fraud case concerning his own Fininvest Holding company.

This latest potential setback has come just when the ebullient prime minister needed it least, a little less than two months away from a general election which already looks as if it will be a very close-run contest.

In recent weeks, Mr Berlusconi's centre-right coalition has appeared to be closing the gap with the centre-left opposition which at one time had a six-point lead. The prime minister's campaign could suffer a serious reverse if, as seems likely, investigating magistrates ask for his indictment at a preliminary hearing in about thee weeks.

Both Corriere della Sera and La Republica yesterday carried reports on an investigation into whether Mr Berlusconi had paid British lawyer David Mills $600,000, allegedly in return for false testimony during two trials related to Fininvest. Mr Mills, husband of British culture secretary Tessa Jowell, was instrumental in setting up a number of offshore companies for Mr Berlusconi's Fininvest Group.

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In two trials, investigators had argued that Fininvest used the off-shore companies as a slush funds container to pay off tax inspectors and the late, disgraced Socialist prime minister, Bettino Craxi. The Milan investigators now believe that Mr Mills committed perjury in both those trials by not revealing the true nature of the offshore companies or the use that Mr Berlusconi and Fininvest made of them.

In nine judicial investigations over the last decade, Mr Berlusconi has been charged with corruption, bribery of judges, bribery of tax inspectors, false accounting, tax evasion and illegal party financing. Four times he has been found guilty, with those verdicts either being overturned on appeal, or being wiped out by the statute of limitations.

Mr Berlusconi has always argued that he is the victim of a political witch-hunt, orchestrated by left-wing magistrates. His defence lawyer, and Forza Italia deputy, Nicola Ghedini, reiterated that claim yesterday.