SHOCKED by the death of a secret agent in Iraq, Italy was under fire yesterday for allegedly paying a ransom to free the hostage he was protecting.

The Italian authorities have never publicly admitted paying ransoms in Iraq, but senior officials have acknowledged, off the record, that money changes hands to free Italian hostages, sometimes disguised as humanitarian aid.

Now, after the death of Nicola Calipari, who was shot by US troops after negotiating the release of Giuliana Sgrena, a left-wing journalist, that policy has been condemned as counterproductive by Italian and foreign politicians.

Signora Sgrena has said that she “knows nothing about any ransom”, and a video released by her alleged kidnappers yesterday claimed that they had refused payment, “even though it was offered”.

Silvio Berlusconi, the Italian Prime Minister, was reported as saying this week that “we have to rethink our strategy in dealing with kidnappings”.

He has been under pressure from the US and Britain, who believe that such deals fuel the insurgency. Carlo Taormina, a deputy for Signor Berlusconi’s Forza Italia party, said: “Italians should remember that the money paid goes to finance kamikaze bombers.”

Ferdinando Imposimato, a judge specialising in kidnap cases, said that paying ransom was “extremely dangerous because it gives an incentive to the kidnappers and puts more Italians at risk”.

Their concerns were echoed by Bob Callahan, senior spokesman for the US Embassy in Baghdad.

He said: “Our policy is that we do not pay ransom for hostages: one, it encourages further kidnappings and two, it funds further terrorist acts.” The Iraqis were less critical. Sabah Kadhim, spokesman for the Interior Ministry, said: “We don’t negotiate with terrorists. But you can’t control someone whose son or daughter has been kidnapped. Wouldn’t you try your best to save someone you love?”

Signor Calipari is widely reported to have negotiated the payment of around $6 million (£3.1 million) to the kidnappers.

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