* Foreign minister says media reports "baseless" * ** direct denial that ransom was paid for Italians * Politicians raise questions over Islamist funding (Adds comments by foreign minister) ROME, Jan 16 (Reuters) - Italy said on Friday reports that a 12-million-euro ransom was paid to free two aid workers kidnapped in Syria were "baseless", following public criticism, but did **t deny directly that a payment had been made. Vanessa Marzullo and Greta Ramelli were kidnapped in July while volunteering as healthcare assistants in the **rthern Syrian city of Aleppo. News of their return was greeted with applause in parliament but also drew unusually heavy criticism from opposition politicians after Arab media reports suggested a ransom of 12 million euros ($14 million) may have been paid to al Qaeda's Syrian wing, the Nusra Front. Foreign Minister Paolo Gentiloni dismissed the reports, which he said may have been circulated by the kidnappers.