01 May 12 | Uncategorized
Rupert Murdoch is “not a fit person to exercise the stewardship of a major international company”, a committee of MPs has concluded today.
In a damning report on News International and phone hacking, the Commons culture, media and sport select committee accused the media mogul of exhibiting “wilful blindness to what was going on in his companies and publications” and not taking steps to become fully informed about the extent of phone hacking at his empire. It said:
This culture, we consider, permeated from the top throughout the organisation and speaks volumes about the lack of effective corporate governance at News Corporation and News International.
The report accused three former News International executives — Les Hinton, Colin Myler, and Tom Crone — of misleading the committee during its inquiries, which began in July 2011 in the wake of revelations about the extent of phone hacking at the now defunct News of the World. The report said that NI’s former legal manager Crone and ex-News of the World editor Myler “deliberately avoided disclosing crucial information to the Committee and, when asked to do, answered questions falsely”.
The report said that the company “finally realised that its containment approach had failed” by spring 2011 in the wake of civil cases brought forward, and that its “one rogue reporter” stance was by then no longer credible. It said that News Corp’s strategy was to “lay the blame on certain individuals” (citing Myler and Crone amongst others) while “striving to protect more senior figures, notably James Murdoch.”
“Even if there were a ‘don’t ask, don’t tell’ culture at News International, the whole affair demonstrates huge failings of corporate governance at the company and its parent, News Corporation”, the report added.
Meanwhile, former NI chairman James Murdoch, who gave evidence to the committee along with his father last year, was accused of “wilful ignorance” and of betraying “astonishing lack of curiosity on the part of a chief executive” for not having inquired more deeply into the extent of the practice in 2008, at the time of negotiations surrounding a £700,000 phone-hacking settlement paid to the Professional Footballers’ Association boss, Gordon Taylor.
“Had James Murdoch been more attentive to the correspondence that he received at the time, he could have taken action on phone hacking in 2008 and this committee could have been told the truth in 2009,” the report said.
Last month the younger Murdoch 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.
However the report’s conclusions were not unanimous, with the committee split over several of its findings. The motion to submit the report to Parliament passed by a majority of six to four, with four Conservative members opposing. Four of the five Tory members of the committee also refused to declare the elder Murdoch was a fit person to run an international company.
“This line about Rupert Murdoch not being fit was stuck in on the basis of no evidence to the committee whatsoever,” Tory MP Louise Mensch said. She added that the report was “carried on political lines” and feared its credibility had been damaged as a result of not having full backing of all committee members. Committee chair John Whittingdale stressed, however, that the committee was “wholly agreed” on the main findings relating to their being misled by named individuals.
Meanwhile, Ofcom released a statement noting it had seen today’s report:
Ofcom has a duty under the Broadcasting Acts 1990 and 1996 to be satisfied that any person holding a broadcasting licence is, and remains, fit and proper to do so. Ofcom is continuing to assess the evidence – including the new and emerging evidence – that may assist it in discharging these duties.
Marta Cooper is an editorial researcher at Index. She tweets at @martaruco
26 Apr 12 | Leveson Inquiry
In a second day of testimony before the Leveson Inquiry, Rupert Murdoch admitted that “one or two strong characters” were responsible for a cover-up of the phone hacking scandal at News International.
The News Corp chairman and chief executive explained to the court that he was “misinformed” and “shielded” from events that were taking place at the paper. Murdoch pointed the finger at “a clever lawyer”, who forbade people from reporting to News International chief executive Rebekah Brooks or chairman James Murdoch.
Despite the acknowledgement of the cover-up of the “cancer” that was prevalent in News International, Murdoch stressed to the court that the senior management of News Corp were not involved. He said:
“There was no attempt, at my level, or several levels below me to cover it up. We set up inquiry after inquiry. We employed legal firm after legal firm and perhaps we relied too much on the conclusions of the police.”
He added that when presented with information relating to a Guardian article in 2009 detailing unethical practices at the News of the World, the police said that the article was wrong. He said: “We chose to take word of police over guardian. We rested on that until beginning of 2011.”
After explaining that Colin Myler was hired as the editor of News of the World in 2007 to find out “what the hell was going on” in the newsroom, Murdoch admitted that he should have taken personal responsibility for ensuring that the brief was completed, and not delegated the duty to Les Hinton.
Murdoch also described his disbelief that law firm Harbottle and Lewis did not alert Rebekah Brooks that the problem was far more widespread than one rogue reporter: “I cannot understand a law firm reading that, and not ringing the chief executive of a company and saying ‘hey, you’ve got some really big problems’.”
The media mogul told the court that he had failed with now defunct News of the World. He said: “I am guilty of not having paid enough attention to News of the World, probably the whole time we owned it. It was an omission by me, and all I can do is apologise to a lot of people.”
Describing himself as “greatly distressed” by the closure of the News of the World, Murdoch admitted that the news paper and the journalistic practices operating within it were an “aberration”.
When asked by Jay why he closed the tabloid newspaper, rather than toughing it out, Murdoch told the court he “panicked”, but said he was glad he took that decision.
Murdoch explained “when the Milly Dowler situation was first given huge publicity, all the newspapers took it as the chance to make a really national scandal. You could feel the blast coming in the window almost.”
He added: “I’m sorry I didn’t close it years before and put a Sunday Sun in,” and described the “whole business” as “a serious blot on my reputation.”
Murdoch told the court he felt in hindsight should have had a one-on-one with Clive Goodman to establish if he was telling the truth that phone hacking was more widespread in the paper. Murdoch told the court he should have “thrown all the damn lawyers out” and cross examined Goodman. He added that if he decided Goodman was telling the truth he “would have torn the place apart, and we wouldn’t be here today.”
Turning to the controversial privacy case of ex-Formula One chief Max Mosley and Neville Thurlbeck’s blackmail of women involved in the case, Jay asked Murdoch if he really felt this kind of behaviour wasn’t something to worry about.
Murdoch replied: “A journalist doing a favour for someone, and someone doing a favour back is an every day occurrence.”
Leveson told Murdoch he considered that approach “somewhat disturbing,” asking the media proprietor to tell him if he believed this type of behaviour was seen as justifiable and acceptable common practice in the industry.
Murdoch replied: “It’s a common thing in life, way beyond journalism, for people to say I’ll scratch your back if you scratch mine. This seems to go beyond that.”
Seeing an opportunity to challenge continual assurances that Murdoch did not have any inappropriate relationships with politicians, Jay suggested it was interesting that “you scratch my back” was a common attitude, but not one Murdoch held with regards to politicians.
Referring to the BSkyB bid which caused so much controversy earlier in the week, Murdoch told the court he had never met, nor dealt with Jeremy Hunt.
When asked if he and his son James had discussed the replacement of Vince Cable with Jeremy Hunt, Murdoch told the court he didn’t believe they did. Following Hunt’s appointment to the bid, Murdoch denied that James Murdoch had said “we’ve got someone better now,” but told the court “we couldn’t have had anyone worse”.
Asked by Jay if he believed the bid was derailed as a result of the revelations that the phone of murdered teenager Milly Dowler had been hacked, Murdoch said he was unsure if it was related to the “Milly Dowler misfortune” but that he did believe it was as a result of the hacking scandal.
The inquiry will continue on 7 May
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25 Apr 12 | Leveson Inquiry
Media mogul Rupert Murdoch has told the Leveson Inquiry that Labour leader Gordon Brown “declared war” on News Corp after the Sun moved to back the Conservatives in 2009.
Appearing before the inquiry today, Murdoch described a phone conversation between the pair, during which the veteran newspaper proprietor told the then Prime Minister that the newspaper would be backing a change of government in the next election.
Telling the court that he did not think Brown was in a “very balanced state of mind” during the call, Murdoch explained that the politician had called on the day of his party conference speech in 2009 after hearing about the paper’s altered political allegiance.
Murdoch said: “Mr Brown did call me and said ‘Rupert, do you know what’s going on here?’ I said ‘What do you mean?’ He said, ‘Well the Sun and what it’s doing.’ I said ‘I’m sorry to tell you Gordon, but we will support a change of government when there’s an election.’”
Despite suggestions from former Sun editor Kelvin MacKenzie that Brown “roared” at Murdoch for 20 minutes, Murdoch insisted that there were no raised voices during the conversation.
Describing his relationship with Brown to the court, Murdoch said: “My personal relationship with Brown was always warm — before he became Prime Minister and after. I regret that after the Sun came at him, that’s not so true but I only hope that can be repaired.”
But Murdoch added that Brown made a “totally outrageous statement” when he described News Corp as a “criminal organisation,” after alleging that his health records had been hacked.
“He said that we had hacked into his personal medical records when knew very well how the Sun had found out about his son which was very sad”, Murdoch told the court, who went on to explain that the story relating to Brown’s son’s Cystic Fibrosis had been obtained from a father in a similar situation.
To allegations that he traded favours with Tony Blair, Murdoch repeatedly denied the suggestion: “You are making inferences. I never asked Mr Blair for anything, and neither did I receive anything.”
The court heard that Murdoch was slow to endorse the Labour party in 1994, but he denied that that was part of a strategy to gauge commercial interests. Later in his testimony, somewhat losing his patience, Murdoch added to Robert Jay, QC: “I don’t know how many times I have to state to you Mr Jay, that I never let commercial considerations get in the way.”
After a 1994 dinner with Blair, Murdoch acknowledged that he may have said “He says all the right things but we’re not letting our pants down just yet”, but could not remember exactly.
Similarly, Murdoch did not recall speculating on the future of his relationship with Blair, when he reportedly said: “If our flirtation is ever consummated Tony we will make love like porcupines — very, very carefully.”
Turning to his relationship with David Cameron, Murdoch denied saying he “didn’t think much” of the Conservative party leader. He recalled meeting him at a family picnic at his daughter’s house, and was “extremely impressed by the kindness and feeling he showed to his children”.
When asked if he discussed issues such as broadcast regulation, BBC license fees or Ofcom, Murdoch denied the allegations. He said: “You keep inferring that endorsements were motivated by business motives. If that were the case we would always have supported the Tories, because they’re always more pro-business.”
Jay asked if he and Cameron discussed the appointment of ex-News of the World editor Andy Coulson as spin doctor for the Conservative party. Murdoch explained to the court that he “was as surprised as everybody else” by the appointment.
Murdoch denied rumours that he hadn’t forgiven David Cameron for calling the inquiry, explaining that the state of media in the UK is of “absolutely vital interest to all it’s citizens”, and adding that he welcomed the opportunity to appear before the court because he “wanted to put certain myths to bed.”
The billionaire newspaper owner was also asked about his relationships with numerous other politicians, including Scottish politician Alex Salmond and former Prime Minister John Major. Murdoch also told the court that he “remained a great admirer” of Margaret Thatcher, but denied that he was “one of the main powers behind the Thatcher throne.”
Murdoch echoes his son James’ testimony, saying that relationships between the media and politicans were “part of the democratic process”. He added: “Politicians go out of their way to impress people in the press. All politicians of all sides like to have their views known by the editors and publishers of newspapers, hoping they will be put across, hoping they will succeed in impressing people. That’s the game.”
At the start of today’s hearing, Lord Justice Leveson responded to the furore relating to emails from Jeremy Hunt revealed during James Murdoch’s testimony to the court yesterday.
“I am acutely aware from considerable experience that documents such as these cannot always be taken at face value and can frequently bare more than one evaluation. I am not taking sides or expressing opinion but it is very important to hear every side of the story. In due course we will hear all relevant evidence from all relevant people.”
Rupert Murdoch’s evidence to the inquiry will continue at 10am tomorrow.
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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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