BRITAIN: Downing Street staged a show of support for Culture Secretary Tessa Jowell yesterday as she strongly denied any conflict of interest arising from her husband's financial affairs.
Specifically and "categorically", Ms Jowell also denied that funds used to clear a second mortgage on the couple's London home had come from Italian prime minister Silvio Berlusconi, in what Italian prosecutors allege was a bribe paid to her husband, international corporate lawyer David Mills.
Ms Jowell spoke out after reports in the Sunday Times that she had signed a mortgage application in respect of their north London house which had enabled Mr Mills to bring the alleged stg£344,000 pay-off into Britain.
Mr Mills, who has been embroiled for years in investigations into the financial affairs of Mr Berlusconi, denies receiving a bribe in return for helpful testimony in an earlier corruption trial.
Speaking on BBC Radio 4's Woman's Hour yesterday morning, Ms Jowell admitted signing the application form enabling her husband to raise some £400,000 on their home without asking when it would be paid back or how.
"What I did was to sign a form that enabled the bank to take a charge on our house in order that my husband could then buy some investments he wanted to do . . . It is as simple as that. It is not an unusual thing to do, it is not an improper thing to do."
When asked if she had been shocked to discover that the money to clear the mortgage might have come from Mr Berlusconi, Ms Jowell replied: "But it didn't. It categorically didn't. If I felt that either I or my husband were harbouring some guilty secret, I would be very worried indeed. This is a very tough time. It would be a hell of a lot tougher if I felt that I had done something wrong."
However, Ms Jowell's "tough time" seemed set to continue, despite the declared backing of prime minister Tony Blair, as the Conservatives pressed the cabinet secretary, Sir Gus O'Donnell, for an inquiry into whether there had been any breach of the ministerial code governing the behaviour of ministers.
The code requires ministers to avoid any conflict of interest, or the appearance of a possible conflict of interest, and imposes requirements for the notification of financial transactions, including - where appropriate - those of family members.
The prime minister's official spokesman said that Ms Jowell had Mr Blair's full support, adding: "Tessa Jowell has said she believes she has not done anything that conflicts with her interests as secretary of state and has kept within the ministerial code . . . [ Ms Jowell] will continue to discuss the matter with her permanent secretary, as she has done throughout, to make sure she keeps within the ministerial code."
There is concern in Whitehall, however, that Ms Jowell could be damaged by a drip-feed of allegations from the Italian authorities ahead of a decision on the case against her husband, which is expected sometime next month.