'KEY PAPERS AT RISK' EXCLUSIVE.

Byline: By OONAGH BLACKMAN

POLICE raided David Mills' firm because they feared sensitive documents would be destroyed or hidden.

Leaked court papers show his company was being investigated a decade ago over its dealings for Italian premier Silvio Berlusconi.

Italian prosecutors were on Mr Berlusconi's trail in 1996 and asked for a search warrant to track down documents at the London office of CMM - the firm Mr Mills founded. The Serious Fraud Office was granted a warrant by Bow Street magistrates. Mr Berlusconi's lawyers appealed against it.

But High Court papers reveal Italian officials feared CMM would conceal, destroy or remove sensitive documents.

They also reveal one of Mr Mills' associates at CMM arranged for papers wanted by the Italians to be switched from Switzerland to London. An SFO official wrote: "The fact that the documents have already been moved once suggests that those involved would not hesitate to do the same again."

The scandal deepened last night when Mr Mills was accused of abusing his wife's Cabinet position as well as his friendship with Tony Blair.

In a letter sent to finance chiefs in Dubai, he allegedly highlighted his marriage to the Culture Secretary and claimed to have the "support and sympathy of the Prime Minister".