Giampaolo Tarantini also said in a statement late on Saturday to Italian new agency ANSA that he only reimbursed the women for their travel and expenses, refuting suggestions that he paid the women, reportedly including a high-end prostitute, to attend.

He said Mr Berlusconi didn't know the expenses were paid, and said he was sorry that something that was meant well had turned into a mess for the premier.

Mr Tarantini has been at the centre of new allegations concerning Mr Berlusconi's purported fondness for younger women. The scandal began weeks ago when the premier's wife, Veronica Lario, cited Mr Berlusconi's selection of young starlets and showgirls for European Parliament elections in announcing she was divorcing him.

Since then, Mr Berlusconi has fended off allegations he had an improper relationship with an 18-year-old model and had hosted showgirls and escorts at his parties who were paid to attend.

Mr Berlusconi has called the allegations 'garbage' and accused the media of a smear campaign.

Three women have told Italian newspapers that at Tarantini's invitation they attended parties at the premier's residence last fall and in January.

All three have been questioned by Bari police reportedly investigating Mr Tarantini for alleged improprieties concerning contracts for his health care business and for allegedly inciting prostitution.

In the statement, Mr Tarantini said the women's stories were false and were designed purely to harm the premier. He apologised to Mr Berlusconi for having 'unwillingly hurt him'. He said he invited the women to the parties because he wanted to present a 'bella figura' - a good impression - to Mr Berlusconi, whom he had only recently met.

'It's absolutely beyond discussion that Premier Mr Berlusconi could have been aware of my reimbursements' to the women, he said. -- AP