SORMAN, Libya (AFP/Reuters) - Three children were among 15 people killed in a new Nato air strike on Monday, government spokesman Mussa Ibrahim told reporters during a tour of damaged buildings in Sorman, west of Tripoli. The new allegation of civilian deaths in a NATO-led raid came just hours after the alliance acknowledged it was responsible for deaths in a residential area of the capital early on Sunday. Ibrahim said the strike, which hit the home of Khuwildi Hemidi who served on the Revolution Command Council which Moamer Gaddafi established when he seized power in 1969, was a "cowardly terrorist act which cannot be justified." A second Libyan official said Hemidi's home and two adjacent ones were hit by eight missiles in the 4 am (0200 GMT) strike in Sorman, 70 kilometres (45 miles) from the capital. Most of the dead were members of Hemidi's family. They included two of his grandchildren, the official said. Meanwhile, Nato on Monday admitted carrying out an air strike on a military target in the Sorman area west of the capital. The government spokesman slammed as a "cowardly terrorist act which cannot be justified" an attack on an estate of a veteran comrade of leader Moamer Gaddafi. NATO, reversing an initial denial, acknowledged its warplanes hit Sorman but insisted the target was military. A statement said a precision air strike was launched against a "high-level" command and control node in the Sorman area early on Monday. "This strike will greatly degrade Gaddafi regime forces' ability to carry on their barbaric assault against the Libyan people," said Canadian Lieutenant General Charles Bouchard, commander of NATO operations in Libya. A NATO official said the alliance was aware of regime allegations that 15 people, including three children, were killed but had no way of verifying them. Another official had said earlier the alliance had not conducted any air strikes in the Sorman area, 70 kilometres (45 miles) from Tripoli. Meanwhile, Italy's foreign minister said on Monday that the NATO military alliance has endangered its credibility with a bomb that destroyed a house in the Libyan capital, killing several residents,. It was the first time NATO had acknowledged causing multiple civilian casualties in Libya and came as the alliance feels the strain of a campaign taking more time and resources than expected. "NATO is endangering its credibility; we cannot risk killing civilians," Italian Foreign Minister Franco Frattini told reporters before an EU foreign ministers' meeting in Luxembourg to discuss ways to aid rebels trying to oust Muammar Gaddafi. Frattini expressed concern that NATO was losing the propaganda war to Gaddafi and that Western media reports did not emphasize enough the good work done by the alliance every day to protect Libyan civilians. Escorted there by authorities, journalists saw damaged buildings on the sprawling estate of Khuwildi Hemidi, who served on the Revolution Command Council Gaddafi created when he seized power in 1969. Journalists also witnessed a number of dead animals among the peacocks, ostriches and gazelles kept in the estate's grounds. Reporters were also taken to Sabratha hospital some 10 kilometres from Sorman, where an AFP correspondent saw nine bodies, including those of two children. They also saw body parts, including a child's head. A second Libyan official charged that eight missiles had struck the estate at 4 am (0200 GMT). He said most of the dead were members of Hemidi's family, including two of his grandchildren, and that others came from two more families living on the estate. Hemidi himself escaped unharmed, the official added. The new Libyan claim of civilian deaths came just hours after NATO acknowledged that one of its missiles had gone astray early on Sunday, hitting a residential neighbourhood of Tripoli. Reporters were shown the bodies of five of the nine people Libyan officials said were killed in that strike, including a woman and two toddlers. That admission was a major boost to the credibility of the Libyan regime two weeks after after officials showed journalists a little girl in hospital they said had been wounded in a NATO air strike, only for a member of medical staff to say she had been injured in a traffic accident. It was also an embarrassment for the alliance which has led the bombing campaign in Libya under a UN mandate to protect civilians. An alliance statement released in Brussels said "NATO acknowledges civilian casualties in Tripoli strike" during action targeting a missile site. "It appears that one weapon did not strike the intended target and that there may have been a weapons system failure which may have caused a number of civilian casualties," the statement added. The Libyan government spokesman insisted there were no military targets anywhere near the Al-Arada district of Tripoli that was hit. But rebels fighting Gaddafi's four-decade rule blamed the veteran strongman for the deaths, charging that his forces deliberately stashed arms in schools and mosques. "We are sorry for the loss of civilian life," said rebel spokesman Abdel Hafiz Ghoga, adding: "We hold the Gaddafi regime responsible for having placed military armaments and rocket launchers near civilian areas." At a meeting in Luxembourg, European Union foreign ministers on Monday urged the use of frozen funds to finance Libya's opposition. The bloc said in a statement that it "acknowledges the urgent financial needs of the Transitional National Council" and said the aid "where possible" could include "the use of frozen Libyan funds," while respecting international law. On Monday, the central bank in the United Arab Emirates froze the assets of 19 Libyan figures in line with UN sanctions against Gaddafi's regime. The rebels have warned that they are running out of money as their struggle enters a fifth month and called on governments in the NATO-led coalition to make good their promises of funds. They have not yet received any of the roughly one billion dollars promised by international donors earlier this month, and urged benefactors to make good on their promises to provide funds, Ghoga said. "(The) funds should have been deposited from last week and none have been deposited to date," he said on Sunday.