Letter from America: Pressure for US News Corp investigation building

No one was talking about the News of the World in Washington on Monday morning — at least not beyond the water-cooler fascination that has followed each new revelation in the phone-hacking scandal. Then the liberal watchdog group Citizens for Responsibility and Ethics in Washington floated the idea of a congressional investigation into Rupert Murdoch’s News International, founded on the revelation in the Daily Mirror that 9/11 victims may have been targeted as well.

By Wednesday, four US senators had lined up behind the idea, shooting off frothing demands for inquiries to the US Department of Justice and Securities and Exchange Commission. By Thursday, the liberal group ThinkProgress was circulating an Internet petition with the overly excited plea to potential signatories that, “with your help, we can obtain a full criminal investigation of the entire News Corp empire, including domestic subsidiaries such as Fox News, the Wall Street Journal, and the New York Post.”

Now 9/11 families, already bracing for the 10th anniversary commemorations this fall, want an inquiry. Members of the Bancroft family that originally sold the Wall Street Journal to Murdoch are publicly voicing regret. The FBI has opened a “preliminary review.” And Washington is in the full throws of what AdWeek has called “investigation fever” (which is all the more remarkable given that US politicians are supposed to be very busy this week averting the next great shock to the global economy).

Some of the outcry is clearly political in motivation. Liberal advocacy groups that have long detested the conservative bent of Murdoch holdings Fox News and the Wall Street Journal have spied an excellent opportunity to kneecap the opposition press. All four of those senators — California’s Barbara Boxer, West Virginia’s John Rockefeller and New Jersey’s Frank Lautenberg and Robert Menendez — are also Democrats.

But later in the week, a surprising Republican joined the chorus — New York Congressman Peter King, who is best known outside his district for spearheading congressional investigations into the “radicalisation” of the American Muslim community. The 9/11 revelations have touched a particular nerve with politicians from the New York area, now giving the calls for investigation a bipartisan tone.

King wrote to FBI director Robert Mueller of the media reports that New of the World journalists tried to bribe a New York police officer for 9/11 phone records, suggesting they warrant felony charges:

“It is revolting to imagine that members of the media would seek to compromise the integrity of a public official for financial gain in the pursuit of yellow journalism. The 9/11 families have suffered egregiously, but unfortunately they remain vulnerable against such unjustifiable parasitic strains. We can spare no effort or expense in continuing our support for them.”

Eliot Spitzer, the former Democratic governor of New York, also demanded in Slate that the government “go after” New Corp. and potentially revoke its U.S. TV licenses for any violations of the Foreign Corrupt Practices Act.

Spitzer, who is also a lawyer, probably explains the law best:

“It prohibits any American company or citizen from paying or offering to pay — directly or indirectly — a foreign official, foreign political figure, or candidate for the purpose of influencing that person in any decision relating to his official duties, including inducing that person to act in violation of his or her lawful duty. Very importantly, even if all such acts occur overseas, the American company and citizen will still be held liable here. So acts in Britain by British citizens working on behalf of News Corp. create liability for News Corp., an American business incorporated in Delaware and listed on American financial exchanges.”

We must keep an eye on the First Amendment, Spitzer suggests, any time the topic of investigating the media arises. But an investigation of the media is not exactly what we’re talking about here, he insists. Rather, he says, this would be “an investigation of criminal acts undertaken by those masquerading as members of the media.”

His harshest indictment, though, wasn’t of News Corp itself.

“The other reason to investigate here is that there is serious doubt that this matter can be investigated properly in Great Britain. Scotland Yard is already implicated, as is Cameron’s government. DoJ can and should fill the void.”

 

 

News of the World: The paper that died of shame?

Actually, no. The News of the World, now closed after 168 years, didn’t die of shame. It has folded because its owners, News International, are desperate to protect themselves and the rest of their business. Months of efforts to kill off this scandal have failed and the tide of outrage was rising dangerously close to the Murdochs themselves. So they killed off the paper instead.

The News of the World, the historic title, did not cause this scandal. It was people who caused it — and made it worse by attempting to cover it up. Some of those people are at or near the top of the company and they will not be affected by this news. If they had acted properly in 2006, or even in 2009, they might have put things right. Now and not for the first time they are sacrificing their subordinates to save themselves.

This must not slow progress towards setting up a full public inquiry, which has to look, among other things, at the conduct of the likes of Rebekah Brooks and James Murdoch. The truth is still there to be found and exposed, and the lessons are there to be learned — for journalists, the police, politicians and others.

The Murdochs own the title and it is, in law, theirs to close. But in a way they were really custodians of the title. It is much older than them, and has a history. If they had valued that history a little more, they might have put the title before themselves and it would have lived, perhaps in time under an honourable new owner.

Statement from James Murdoch on the closure of the News of the World

News International today announces that this Sunday, 10 July 2011, will be the last issue of the News of the World.

Making the announcement to staff, James Murdoch, Deputy Chief Operating Officer, News Corporation, and Chairman, News International said:

“I have important things to say about the News of the World and the steps we are taking to address the very serious problems that have occurred.

It is only right that you as colleagues at News International are first to hear what I have to say and that you hear it directly from me. So thank you very much for coming here and listening.

You do not need to be told that The News of the World is 168 years old. That it is read by more people than any other English language newspaper. That it has enjoyed support from Britain’s largest advertisers. And that it has a proud history of fighting crime, exposing wrong-doing and regularly setting the news agenda for the nation.

When I tell people why I am proud to be part of News Corporation, I say that our commitment to journalism and a free press is one of the things that sets us apart. Your work is a credit to this.

The good things the News of the World does, however, have been sullied by behaviour that was wrong. Indeed, if recent allegations are true, it was inhuman and has no place in our Company.

The News of the World is in the business of holding others to account. But it failed when it came to itself.

In 2006, the police focused their investigations on two men. Both went to jail. But the News of the World and News International failed to get to the bottom of repeated wrongdoing that occurred without conscience or legitimate purpose.

Wrongdoers turned a good newsroom bad and this was not fully understood or adequately pursued.

As a result, the News of the World and News International wrongly maintained that these issues were confined to one reporter. We now have voluntarily given evidence to the police that I believe will prove that this was untrue and those who acted wrongly will have to face the consequences.

This was not the only fault.

The paper made statements to Parliament without being in the full possession of the facts. This was wrong.

The Company paid out-of-court settlements approved by me. I now know that I did not have a complete picture when I did so. This was wrong and is a matter of serious regret.

Currently, there are two major and ongoing police investigations. We are cooperating fully and actively with both. You know that it was News International who voluntarily brought evidence that led to opening Operation Weeting and Operation Elveden. This full cooperation will continue until the Police’s work is done.

We have also admitted liability in civil cases. Already, we have settled a number of
prominent cases and set up a Compensation Scheme, with cases to be adjudicated by
former High Court judge Sir Charles Gray. Apologising and making amends is the right thing to do.

Inside the Company, we set up a Management and Standards Committee that is working on these issues and that has hired Olswang to examine past failings and recommend systems and practices that over time should become standards for the industry. We have committed to publishing Olswang’s terms of reference and eventual recommendations in a way that is open and transparent.
We have welcomed broad public inquiries into press standards and police practices and will cooperate with them fully.

So, just as I acknowledge we have made mistakes, I hope you and everyone inside and
outside the Company will acknowledge that we are doing our utmost to fix them, atone for them, and make sure they never happen again.

Having consulted senior colleagues, I have decided that we must take further decisive
action with respect to the paper.

This Sunday will be the last issue of the News of the World.

Colin Myler will edit the final edition of the paper.

In addition, I have decided that all of the News of the World’s revenue this weekend will go to good causes.

While we may never be able to make up for distress that has been caused, the right thing to do is for every penny of the circulation revenue we receive this weekend to go to organisations –– many of whom are long-term friends and partners –– that improve life in Britain and are devoted to treating others with dignity.

We will run no commercial advertisements this weekend. Any advertising space in this last edition will be donated to causes and charities that wish to expose their good works to our millions of readers.

These are strong measures. They are made humbly and out of respect. I am convinced they are the right thing to do.

Many of you, if not the vast majority of you, are either new to the Company or have had no connection to the News of the World during the years when egregious behaviour occurred.

I can understand how unfair these decisions may feel. Particularly, for colleagues who will leave the Company. Of course, we will communicate next steps in detail and begin
appropriate consultations.

You may see these changes as a price loyal staff at the News of the World are paying for the transgressions of others. So please hear me when I say that your good work is a credit to journalism. I do not want the legitimacy of what you do to be compromised by acts of others. I want all journalism at News International to be beyond reproach. I insist that this organisation lives up to the standard of behaviour we expect of others. And, finally, I want you all to know that it is critical that the integrity of every journalist who has played fairly is restored.

Thank you for listening.

Brian Cathcart teaches journalism at Kingston University and tweets at @BrianCathcart