Mortgage loan story rejected by Jowell's husband

David Mills, the husband of the culture secretary, Tessa Jowell, yesterday dismissed as "completely untrue" allegations that the couple took out a mortgage loan in order to bring "bribe" money for him in from Italy. His comments were made as Ms Jowell was dragged into the affair by calls from the shadow leader of the Commons, Theresa May, for the cabinet secretary to investigate whether there had been a breach of the ministerial code.

Mr Mills has come under mounting attack over his relationship with the Italian prime minister, Silvio Berlusconi. The 61- year-old lawyer is under investigation in Milan over allegations - which he denies - that he received £350,000 from Mr Berlusconi in return for evidence he gave at the Italian prime minister's earlier corruption trial.

In a statement to the Sunday Times, which reported on the mortgage transaction, Ms Jowell said: "[In September 2000] I signed a charge over our jointlyowned 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."

Yesterday Mr Mills said: "They are trying to suggest that this money was connected with the payment to me of this money [from Italy]. It's completely untrue. I took out this mortgage to buy some other investments. There was a narrow opportunity to buy them. The suggestion that my wife was complicit is a monstrous libel. This is an unusual position because the court documents are all out in the open. The papers are doing this because it's not an English trial. It demonstrates why it's [impossible] to have a trial by newspapers." Mr Mills said the two financial transactions were "totally unconnected". The money received from Italy "was not a bribe", and came from someone unrelated to Mr Berlusconi.

Yesterday the Conservatives asked for independent scrutiny of the affair. "I have written to the cabinet secretary [Sir Gus O'Donnell] and asked him to confirm that there has been no breach of the ministerial code so people can feel that there is somebody other than the parties immediately involved," Ms May said. The Cabinet Office yesterday said that Sir Gus would respond, probably later this week.

Committal proceedings are being held in Milan to decide whether Mr Mills, Mr Berlusconi and others should face trial over charges arising from the trading of TV rights through offshore companies set up by the minister's husband. All the accused deny the charges.

In a second case, the same prosecutors have let it be known they plan to bring an additional charge of corruption against Mr Mills and Mr Berlusconi. They contend that Italy's prime minister and richest man paid the minister's husband for favourable testimony at two trials in the 1990s. Again, both men deny the charges.