An investigation into Vatican finances has concluded that €500,000 paid to a company owned by Cecilia Marogna was spent on clothes and accessories from Prada and Yves Saint Laurent, according to Italian newspaper reports.

The payments were made under the supervision of Cardinal Angelo Becciu, who was fired last month over allegations of embezzlement and nepotism, The Times reports.

However, Ms Marogna, 39, insists that the money was used to create a high-level diplomatic network on behalf of the Vatican, and denies that any had been stolen.

She said it had also been used “to try and free priests and nuns kidnapped in difficult territories. But I didn’t steal a euro.”