24 Apr 12 | Leveson Inquiry
In an explosive afternoon at the Leveson Inquiry, culture secretary Jeremy Hunt was branded a “cheerleader” for the News Corporation’s bid for BSkyB.
A round of revelations from former News International chairman James Murdoch, detailing extensive emails between the media proprietor and News Corporation’s director of public affairs, Fréderic Michel, suggested Hunt was in close contact with News International during the time business secretary Vince Cable was considering the BSkyB bid.
The inquiry heard that Hunt had received “strong legal advice” against meeting with Murdoch, but one email suggested that the pair speak on the telephone at a later date. As the hearing continued through the afternoon, Robert Jay QC explored numerous emails describing communications between Michel and Hunt’s office and advisors.
Jay told Murdoch that the emails made it “clear that you were receiving information along the lines that the UK government as a whole would be supportive of News Corp”, but Murdoch replied that Hunt had made similar comments publically, and the emails were “not inappropriate”.
Murdoch said: “I think Mr Hunt had said personally he didn’t see any issues … there’s no special information in there.”
The court heard that Hunt had said he was “frustrated” at not being able to contact Murdoch. After exploring a number of emails, Jay proposed that as informal contact had been discouraged, Michel continued communications with Hunt’s office through back door methods:
Jay said: “Mr Hunt must have taken the advice that formal meetings were ok, that would not impugn the fairness of the process. Informal contact would be inappropriate and the way to avoid the appearance of that is to let that contact take place secretly via Michel.”
Despite the support being given to Murdoch and News Corporation by Hunt, he denied thinking the BSkyB deal was “in the bag”, stressing that he was “very worried” about the transaction and his concerns grew as the process continued.
The Leveson Inquiry today published the 163 pages of correspondence between Jeremy Hunt’s office and News Corp over the BSkyB takeover.
Hunt was handed responsibility for the bid in December 2010 after it was taken away from Vince Cable, and has repeatedly stressed that the bid was handled in a way which was “completely fair, impartial and above board”.
Pressure has begun to mount on Hunt to resign amid the allegations, and a number of bookmakers have stopped taking bets that he will be the next cabinet minister to leave the government. A source reportedly told the BBC that the politician was “not even considering resignation” and would present his own evidence to the inquiry within the coming days.
Murdoch was also probed on his relationships with other politicians, including Tony Blair, Gordon Brown and David Cameron. He admitted, for the first time, that in 2010 during a dinner at the home of Rebekah Brooks, former News International chief executive, he discussed the BSkyB deal with Cameron, but Murdoch said he mentioned the dismissal of Cable during a “tiny conversation”.
The former chairman denied that his meetings with Cameron were to ascertain where he stood on issues such as regulation of press and TV, which would affect Mr Murdoch’s companies.
Murdoch also denied linking the political affiliation of a newspaper to a “commercial transaction like this”.
He added: “Nor would I expect that political support one way or another ever to translate into a minister behaving in an appropriate way, ever. I simply would not do business that way.”
James Murdoch resigned from News International in February 2012.
Rupert Murdoch will give evidence to the inquiry tomorrow, to deal with allegations that he was aware of allegations that phone hacking was more widespread than “rogue reporter” Clive Goodman.
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24 Apr 12 | Leveson Inquiry
James Murdoch underwent a grilling at the Leveson Inquiry this morning, and denied accusations that he approved “over the odds” phone hacking settlements to prevent further damage to the reputation of News International.
The former chairman of News International denied the claims that the settlements were used to prevent details of more widespread hacking allegations coming into the public domain.
Referring to a settlement in the case of football Chief Gordon Taylor, in which both Taylor and News International sought confidentiality, Robert Jay QC described the payout, believed to be in the region of £700,000 in 2008, as “hush money.” Murdoch denied these claims, explaining that he had received advice from lawyers not to pursue the case further, to prevent events of the past being “dragged up”.
Jay also suggested that Taylor sought a higher payout because he was aware of the reputational damage that News International could have been subjected to as a result of his claim, though Murdoch denied ever hearing any discussion of the case as one of blackmail.
When asked if Murdoch considered the payout to be an extraordinary amount, he said: “I was told sufficient information to authorise them to go and negotiate at a higher level. I was not told sufficient information to turn over a load of stones that I was told had already been turned over.”
Murdoch added that he left it to Colin Myler, editor of the News of the World, and legal manager Tom Crone to negotiate the fee. A memo from Crone suggested that Myler was becoming increasingly frustrated with Taylor, because he felt he was attempting to blackmail the organisation.
The inquiry also heard details of a meeting on 10 June 2008, when the full extent of phone hacking was believed to be revealed in the “For Neville” email, and Taylor’s case was discussed. Murdoch denied that he had seen the email which suggested that phone hacking at News of the World was more widespread than one rogue reporter. Murdoch also claimed that the purpose of the meeting was not to bring him up to speed on the whole story.
In the same meeting, Jay suggested that Crone and Myler were “very keen” for the Taylor issue to be resolved, “to transmit the message to you that if you didn’t there were serious reputational risks to the company”.
Murdoch denied the suggestion that there was a failure of governance within the company, and that there was a cover-up of evidence linking others at News of the World to Mulcaire. He explained that he had been given “repeated assurances that the newsroom had been investigated,” and that ethics training had been undergone, and was continually ongoing.
When referred to the settlement of Max Clifford, Murdoch said he was not aware of the size of the claim. He added: “My understanding was that there was a litigation pending with Mr. Clifford but it was decided, that because there was a commercial relationship he and Rebekah Brooks wanted to re-establish, they settled it at that.”
Murdoch also recognised that the corporation had been too quick to dismiss Guardian claims in 2009, telling the court he was advised it was a smear campaign. He added: “”No matter where something comes from, whether it’s a commercial or political rival, being more dispassionate, forensic and understanding is very important.” Murdoch also acknowledged that they needed to assess allegations of wrongdoing in a way which was “dispassionate and forensic”, and regretted the “cavalier” attitude of News of the World.
James Murdoch’s testimony will continue throughout the afternoon.
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19 Apr 12 | Leveson Inquiry
Rupert and James Murdoch are set to give evidence at the Leveson Inquiry into press standards next week.
Two days have been set aside for Rupert Murdoch’s long-awaited appearance, as the Inquiry moves into its third module, looking at the relationship between press and politicians.
The media mogul is likely to be quizzed about his closeness to the British political establishment when he appears on Wednesday and Thursday.
Rupert Murdoch closed News International title the News of the World last July in the wake of the phone hacking scandal that engulfed the tabloid.
His son James, set to appear on Tuesday, resigned as chairman of BSkyB, whose parent company News Corporation was founded by his father. He also stood down as chairman of the newspaper publisher, News International, earlier this year.
Evgeny Lebedev of the Independent and Evening Standard, and Telegraph Media Group chairman Aidan Barclay, will both appear on Monday.
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04 Apr 12 | Leveson Inquiry
The Director of Public Prosecutions has said there was a “degree of pushback” from former Metropolitan police assistant commissioner John Yates against his suggestion of investigating the infamous “for Neville” News of the World email further.
Appearing for a second time at the Leveson Inquiry, Keir Starmer QC said Yates had told him during a 20 July 2009 meeting that the email, which contained phone hacking transcripts that suggested the practice went beyond one reporter at the News of the World, was not new material, had been seen by counsel and would “go nowhere”.
“I had been told in July 2009 in confident terms by Yates that all of this had been looked at, there was nothing new,” Starmer told the Inquiry, noting that Yates had told him he “needn’t concern” himself with the issue.
“[But] I became increasingly concerned about confidence with which those answers had been given to me,” he added.
Starmer said that out of an “abundance of caution” he sought further advice from David Perry QC, the counsel who had led the 2006 prosecution of private investigator Glenn Mulcaire and former News of the World royal reporter Clive Goodman for intercepting voicemails.
By the time of the February 2009 Commons Culture, Media and Sport Committee report that said the police had been wrong not to investigate the “for Neville” email further, Starmer said he felt he had “exhausted the exercise with Perry” and was unsure what else as DPP he could do.
Goodman and Mulcaire were jailed in 2007 for listening to voicemail messages left on the phones of members of the royal household. Goodman was sentenced to four months and Mulcaire six months.
Earlier today Perry gave evidence via video link from Northern Ireland, taking the Inquiry through the details of the 2006 prosecution. He told the Inquiry he was “concerned to discover” the extent of the activity, raising the issue at an August 2006 conference with police officers and the Crown Prosecution Service following the arrest of Goodman and Mulcaire.
“I have a clear recollection of asking whether there was any evidence implicating any other individual employed by News International in the criminality and being informed by the police (I cannot recall which officer) that there was not,” Perry said in his written evidence.
The Inquiry will resume on 23 April, when evidence will be heard from media proprietors and owners.
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