Douglas Caddy Posted February 9, 2012 Share Posted February 9, 2012 News Corp shrugs off $87m loss on NoW closure as profits soar Murdoch firm sees 43% income decrease in publishing division – but losses offset by 65% growth for company as a whole By Dominic Rushe in New York guardian.co.uk, Wednesday 8 February 2012 17.23 EST The ongoing investigations that led to the closure of the News of The World cost Rupert Murdoch's News Corp $87m in the last three months of 2011, the company has announced. But the media giant shrugged off the hacking scandal as net income increased 65% for the quarter ended December 31. The loss of the paper, the most profitable in Murdoch's stable, has cost the firm a total of $104m, mostly in lawyers' fees, in the last six months of 2011, said Chase Carey, News Corp's chief operating officer. It also contributed to a 43% decrease in operating income at the media giant's publishing division, the company said releasing its latest quarterly results. News Corp's results came on the same day that the company paid more settlements to victims of the phone-hacking scandal. It also emerged that others, including the singer James Blunt, were considering bringing cases against News Corp. Publishing income fell $162m to $218m, a 43% drop from the same period a year ago. News Corp blamed lower advertising revenues at its Australian newspapers, as well as the loss of the News of the World in the UK. "Our priority on this is to make things right," said Carey. He declined to comment on how much money News Corp expected to pay in settlements or legal fees. But the losses at News Corp's newspaper division were more than offset by strong growth in the firm's cable networks and movie studio divisions and second quarter profits soared 65%. Net income rose $1.06bn for the fiscal second quarter, compared with $642m a year ago. Fox News marked its 10th consecutive year as the US's leading cable channel last year, and the cable division reported $882m in operating income for the quarter, a 20% hike compared to last year. News Corp's film division reported income of $393m for the quarter, a $204m increase over the $189m reported in the same period a year ago. The results were helped by the home release of movies including Rio, Rise of the Planet of the Apes and X-Men: First Class, plus the theatrical release of Oscar hopeful The Descendants. Revenues from digital sales via Amazon and Netflix were $200m for the last six months, said Carey. Income at Fox's television assets grew 25% to $189m helped by the success of The X Factor, comedy show New Girl, Major League Baseball and the NFL. Murdoch, News Corp's chairman and chief executive officer, said in a statement: "I am particularly pleased with the success of our business strategies in spite of the uncertain economic conditions that we continue to face Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 9, 2012 Share Posted February 9, 2012 Phone hacking: News International faces more than 50 new damages claims High court hears alleged victims include Peter Crouch, James Blunt and Nigel Farage as dozens more cases are prepared By Lisa O'Carroll and Jason Deans guardian.co.uk, Wednesday 8 February 2012 11.44 EST News International is facing more than 50 new damages claims from alleged victims of News of the World phone hacking, including Peter Crouch, James Blunt and Nigel Farage, the high court has heard. Rupert Murdoch's UK newspaper publisher has already settled more than 50 civil actions for invasion of privacy, including 16 involving 21 individuals such as comedian Steve Coogan that were confirmed at the high court on Wednesday, for several million pounds in damages and legal costs. The details of six of Wednesday's settlements were revealed, costing News International another £363,000 in damages. However, there is no sign of a let-up on the pressure facing News International, with Hugh Tomlinson QC, representing phone-hacking victims, telling the high court that six new cases had been filed, with a further 50 being prepared. Out of these new civil actions, five have already been selected to be "lead cases". They will, along with the continuing action by Charlotte Church, be considered with a view to establishing a benchmark for damages for the 800 or so potential victims of News of the World phone-hacking identified so far by the Metropolitan police. These new cases are being taken by Crouch, the England and Stoke footballer, and his wife Abbey Clancy; musician Blunt; Farage, the Ukip leader and MEP; Eimear Cook, the ex-wife of former Ryder Cup captain Colin Montgomerie; and former England footballer Kieron Dyer. The damages settlements revealed at the high court on Wednesday bring the total number of phone-hacking cases News International has settled to 54, with six remaining in dispute. These are Church, Ryan Giggs, Crimewatch presenter Jacqui Hames and her husband, police detective David Cook, former royal butler Paul Burrell, Max Clifford's former assistant Nicola Philips, and Elle Macpherson's former financial adviser Mary Ellen Field. Tomlinson told Lord Justice Vos at the high court that Church who was one of a number of potential test cases willing to go to full trial. The singer, who is suing along with her mother Maria and father James, claims 33 articles published by the News of the World between 2002 and 2006 came directly from phone hacking. She also claims that her father was forced to sell his pub in Wales because of the distress caused by press coverage. Coogan, ex-football star Paul Gascoigne and the mother of a 7/7 terrorist bombing victim were among the 21 individuals whose settlements were revealed at the high court on Wednesday. Coogan, who has been fighting a case against News International since 2010, has been one of the leading critics of the company but settled his civil action after it admitted his phone had been hacked by the News of the World and agreed to payout damages of £40,000. He said after Wednesday's court hearing that it was "never about money" and he had just wanted "to show the depths to which the press can sink in pursuit of private information". At the time he began the civil action for invasion of privacy, the tabloid denied any wrongdoing. Coogan, who attended court to hear his settlement being read, added that he was delighted the company had finally capitulated after years of denial that anyone other than a "rogue reporter" covering royal stories had been involved in phone hacking. "I am pleased that after two years of argument and denials, News International has finally agreed to settle my case against it for hacking my voicemails. It has been a very stressful and time-consuming experience for me and for those close to me," he added. MP Simon Hughes was also in court for the settlement and was awarded £40,000 in damages. Other victims who have settled included singer Pete Doherty, jockey Kieran Fallon, and football agent Sky Andrew, who won £75,000, one of the largest payments announced on Wednesday. The largest settlement of all went to Sally King, an estate agent, and her husband Andrew. They were collectively awarded £110,000 – £60,000 for her, £50,000 to her husband in a joint claim, along with undisclosed damages for her father John Anderson and her autistic brother Scott. The high court heard how King, a friend of David Blunkett, had been subjected to physical surveillance and phone hacking by the News of the World, which instructed reporters and photographers to follow them. King went on holiday to the US and discovered that a News of the World reporter was booked on the same flight and photographers and reporters waiting at the rural holiday destination. Her solicitor Charlotte Harris told the court: "The effect of this intensive and intrusive campaign of surveillance, pursuit and harassment, as well as the publication of intrusive and private information on those private individuals has been profound." Alastair Campbell, Tony Blair's one time spin doctor also settled on Wednesday for undisclosed damages, as did Sheila Henry, the mother of 7/7 victim Christian Small. Former England footballer Paul Gascoigne was awarded £60,000 plus special damages of £8,000. The court heard that hacking had a "serious detrimental effect on his wellbeing", and that he was told he was paranoid for thinking he had been targeted. His friend Jimmy Gardner also received undisclosed damages. Sky Andrew, who acts as an agent for footballers such as Sol Campbell, received £75,000. George Galloway received £25,000 and the court was told that he was targeted from the time of the second Gulf war in 2003. In a statement, Hughes said: "The evidence in my case clearly demonstrates that the practice of hacking was widespread and went much further up the chain than Clive Goodman and Glenn Mulcaire. It was criminal behaviour on an industrial scale." He added: "Anyone involved in criminal activity at the News of the World must be brought to justice, and all those who allowed a large company to behave in this way must be held to account." In a statement posted on his blog, Campbell described the settlement as a "satisfactory outcome" for him and added that as part of his agreement, the News of the World publisher had "also undertaken to continue searches of other 'documents in its possession', so that I can ascertain the extent of any further wrongdoing, both for the time I worked in Downing Street and since, and they have agreed I 'may be entitled to further damages in certain circumstances'". Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 9, 2012 Share Posted February 9, 2012 Phone hacking: Steve Coogan says he was forced to act when police failed Daily Telegraph 7:15PM GMT 08 Feb 2012 Steve Coogan said he had other victims of phone-hacking by the News of the World had been forced to “fight for the truth” after being let down by police and politicians, as another 15 cases were settled for substantial damages. The actor claimed that News International had almost succeeded in covering up the “scandal” until their targets, including some members of the public with “tenuous” links to the news, took on Rupert Murdoch’s media empire in civil claims. He made his comments after appearing at the High Court to accept £40,000 in damages from the publishers of the disgraced tabloid newspaper, along with claimants in 14 other cases whose voicemail messages were intercepted by reporters and private investigators. Figures from politics including George Galloway, Alastair Campbell and Simon Hughes also received damages on Wednesday, as did sporting stars such as Paul Gascoigne, who fell out with friends because he thought they were selling stories about him while they accused him of paranoia. The High Court heard that others caught up in the disgraced newspaper's activities included a rival journalist, people who were merely friends with celebrities and the mother of a 7/7 victim. These latest payments, coming weeks after a first tranche of 37, mean that 54 of the original 60 cases have now been settled. Five more cannot be heard yet for technical reasons while the singer Charlotte Church and her parents have refused to settle their claims, paving the way for a landmark trial later this month. A pre-trial hearing was also told that another 50 cases have been launched in recent months by public figures including the singer James Blunt, the UKIP politician Nigel Farage, the footballer Peter Crouch and his wife Abby Clancey, the former wife of golfer Colin Montgomerie, Eimear Cook, and the footballer Kieron Dyer. It means 56 cases are still outstanding against News Group Newspapers, part of Rupert Murdoch's media empire, and Glenn Mulcaire, the PI who was jailed in 2007 in the original criminal trial for phone-hacking. Lawyers read a series of statements on Wednesday morning from those who have settled their cases before the trial. The judge, Mr Justice Vos, heard that Coogan, who was in the courtroom, was an actor "best known in this jurisdiction for his role as Alan Partridge". He had become concerned about the security of his mobile phone back in 2005 with Vodafone telling him of "suspicious activity". He later found out that Mulcaire, acting for News of the World reporters, had got hold of his mobile phone account number and password as well as accessing his voicemail messages. Coogan was awarded £40,000 in damages plus legal costs but said later: “This has never been about money. Like other people who have sued, I was determined to do my part to show the depths to which the Press can sink in pursuit of private information.” He went on: “At the time when these civil cases began, News International seemed likely to succeed in covering up the hacking scandal completely. Neither the police nor the Government were willing to hold those responsible accountable. “For a long time it was left to victims of these egregious practices to fight for the truth.” Coogan called the Leveson Inquiry into press standards a “once in a lifetime opportunity” to ensure others are not subjected to the same “abuse”. Mr Hughes, the prominent Lib Dem MP, was awarded £45,000 for phone-hacking between 2002 and 2006. He said outside the Rolls Building: "It was criminal behaviour on an industrial scale." Sky Andrew, the football agent, was awarded £75,000 as his business reputation had been put at risk when stories about his clients were published that had been obtained illicitly. Sally King, who had been a friend of the Labour minister David Blunkett, received £60,000 while her husband was awarded £50,000 and her father and brother substantial undisclosed damages. Although they were not public figures, reporters hacked their phones, waited outside their homes and even followed them to America after booking seats on the same flight. Paul Gascoigne, the former England footballer, accepted a £68,000 payout which took into account the "mental harm" caused by interception of his private phone messages. He was accused of being paranoid because he thought he was being bugged, and apologised to friends and family for suspecting him of leaking information to the press. His lifelong friend James Gardner, better known as Jimmy Five Bellies, received undisclosed damages as did Phil Hughes, a friend of the late football star George Best. George Galloway had five voicemail messages intercepted around the start of the Iraq invasion in 2003 and received £25,000 in damages. A further group of claims was settled that were brought by another football agent, a dancer, a journalist and his family and Sheila Henry, whose son Christian Small was killed in the terrorist attack on London’s transport network in 2005. Statements were not read in other cases that were settled, including those thought to have involved the singer Pete Doherty and Lord Prescott's former secretary, Tracey Temple. In the forthcoming two-week trial of the claims brought by Miss Church and her parents, it will be claimed that 33 articles published in the News of the World between 2002 and 2006 were based on the illegal interception of their phone messages. Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 9, 2012 Share Posted February 9, 2012 Leveson Inquiry: News of the World editor 'ordered deception of McCanns' Daily Telegraph By Martin Beckford, Home Affairs Editor 3:43PM GMT 09 Feb 2012 Colin Myler, the editor of the News of the World, ordered his news editor, Ian Edmonson, to mislead a spokesman for Madeleine McCann's parents about an intrusive story the tabloid planned to publish, it was claimed at the Leveson inquiry. Mr Myler was said to have told Mr Edmonson to have a "woolly" conversation with Clarence Mitchell and not reveal the fact that the newspaper was going to print Kate McCann's private diary. He came up with the ploy to stop the family of the missing girl obtaining an injunction against the story being published, the Leveson Inquiry into press standards heard on Thursday. The evidence from Mr Edmonson, the former head of news at the News of the World who is taking his old paper to an employment tribunal, contradicts what Mr Myler has previously said. The former editor has told the Leveson hearing that his paper would never have published the diary of the missing girl's mother if she had not been aware of the plan, and that he thought Mr Edmonson had cleared it with the McCanns' spokesman, Mr Mitchell. Giving evidence at the Royal Courts of Justice hearing, Mr Edmonson said he had a meeting with Tom Crone, the paper's senior lawyer, who gave a view of the story that "dismayed" his editor. He said the editor told him to phone Mr Mitchell but not to make it clear exactly what the paper had and intended to publish that Sunday - "make it very woolly". This was in case the McCanns "took action" to stop the story coming out, and also as cover in case they complained afterwards. "It would be in order to blame Clarence, that he hadn't acted properly on instruction." Mr Edmonson said he felt uneasy about doing this and suggested that the editor ring Gerry McCann himself, but was overruled. Asked by Lord Justice Leveson if he had told his editor that he had informed the McCanns' spokesman about the planned diary story, Mr Edmonson replied: "No." Although there was a "sea change" in the culture at the tabloid after the original phone-hacking trial and the Max Mosley case, Mr Edmonson said bullying still went on. "Everything emanates from the editor," he told the hearing. "It's not a democracy, the newspaper, it's autocratic," he concluded. Mr Edmonson also denied he had told the reporter Neville Thurlbeck what to write to the women seen in a notorious sex video with Max Mosley. "I wasn't in the habit of drafting or dictating emails." He said he "didn't like the tone" of the messages telling them they could remain anonymous if they cooperated with the paper, otherwise they would face exposure. "I think they're a threat." He said the "majority" of stories in which they used the private investigator Derek Webb to carry out surveillance were about love affairs, and that some were in the public interest. "There have been a number of examples of false public image - someone portrays themselves in the media as wholesome, faithful and would never cheat on their wife but they're doing something else in private." He said politicians would highlight their "family values" in election literature while celebrities would "parade their children" in glossy magazines. Mr Edmonson insisted the private investigator Mr Webb had been carrying out journalistic work and was simply better at following people than reporters, but admitted "it was a sham" to make him join the National Union of Journalists. He said important phone calls would be taped but that he would not tell the person on the end of the line that they were being recorded, lest they stopped talking. Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 11, 2012 Share Posted February 11, 2012 Feb 11, 11:16 AM EST Staff at The Sun tabloid arrested in bribe inquiry By DAVID STRINGER Associated Press LONDON (AP) -- Britain's biggest-selling tabloid newspaper was fighting to contain the damage after five of its employees were arrested Saturday in an inquiry into the alleged payment of bribes to police and other officials, detectives and the newspaper's parent company said. Rupert Murdoch's News Corp. said the five employees from The Sun tabloid had been detained and that police had searched their homes and the group's London offices, potentially deepening the scandal over British tabloid wrongdoing. A 39-year-old female employee at Britain's defense ministry, a 36-year-old male member of the armed forces and a 39-year-old serving police officer with Surrey Police, were also arrested, police said. The development follows the arrest of four current and former journalists at the newspaper last month in connection with the same bribery inquiry. Sun editor Dominic Mohan expressed his alarm at Saturday's arrests, but insisted the six-day-a-week newspaper would continue its work. "I'm as shocked as anyone by today's arrests, but am determined to lead The Sun through these difficult times," Mohan said in a statement. "I have a brilliant staff and we have a duty to serve our readers and will continue to do that. Our focus is on putting out Monday's newspaper." Two people familiar with the matter, both of whom requested anonymity because they were not authorized to publicly discuss the issue, said Murdoch was scheduled to head to London in the near future to spend time with the company's journalists. One person explained that the trip had been planned for some time and wasn't in reaction to the latest arrests. News Corp. declined to comment on Murdoch's travel plans, or on whether he planned to address staff at The Sun. Murdoch closed down the 168-year-old News of The World tabloid in July amid public anger when the extent of its phone hacking of celebrities, public figures and crime victims was exposed. A former News of the World executive, who also requested anonymity to discuss the ongoing investigations, said The Sun's current deputy editor Geoff Webster, picture editor John Edwards and chief reporter John Kay were among those arrested Saturday. Sky News and other British media reported that chief foreign correspondent Nick Parker and reporter John Sturgis were also being questioned. News Corp. would not publicly confirm the identities of those detained. The executive - who said he was in touch with the Sun's senior staff - claimed that management there were "fighting to halt morale collapse" at the tabloid, describing Mohan as "somewhat shellshocked" by the arrests. A total of 21 people have now been arrested in the bribery probe - including three police officers - though none has yet been charged. They include Rebekah Brooks, former chief executive of Murdoch's News International; ex-News of the World editor Andy Coulson - who is also Prime Minister David Cameron's former communications chief; and journalists from both the News of the World and The Sun. Police said the inquiry - which is running in parallel to investigations into phone hacking and alleged email hacking - had also now widened its remit. It was initially focused on whether reporters had illegally paid police officers for information, but will now examine whether other public officials were also targeted. In a statement, police confirmed the latest arrests came after information was provided to detectives by the management standards committee of Murdoch's News Corp., set up to investigate alleged malpractice. News Corp. also confirmed that it had supplied the police with information, but insisted it would "continue to ensure that all appropriate steps are taken to protect legitimate journalistic privilege and sources, private or personal information and legal privilege." "News Corporation maintains its total support to the ongoing work of the management standards committee and is committed to making certain that legitimate journalism is vigorously pursued in both the public interest and in full compliance with the law," it said. All eight people arrested Saturday are being questioned by police in London and at stations in the southern England counties of Kent, Essex, Surrey and Wiltshire. Police said later Saturday that they had completed searches at the offices of News International, a division of News Corp., in east London. The five journalists from The Sun - aged between 45 and 68 - are being quizzed on suspicion of offenses of corruption and aiding and abetting misconduct in a public office. Police said the three public servants were being questioned on suspicion of misconduct in a public office and corruption offenses. Deborah Glass, deputy chair of the Independent Police Complaints Commission, said Britain's policing watchdog was cooperating over the inquiry. "Today's arrests are further evidence of the strenuous efforts being undertaken to identify police officers who may have taken corrupt payments," she said. Assistant Chief Constable Jerry Kirkby, of Surrey Police, confirmed that one of his force's officers was being questioned. "The force takes matters of this nature extremely seriously and we will not hesitate to respond robustly to allegations where there is evidence to support them," he said. Surrey Police was responsible for the investigation into missing 13-year-old girl Milly Dowler, who was later found murdered. A wave of public revulsion over the disclosure that reporters had intercepted her voicemails in 2002 led Murdoch to close down the News of The World. Britain's ministry of defense declined to comment on the arrest of the defense official. --- Raphael Satter and Paisley Dodds in London and Ryan Nakashima in Los Angeles contributed to this report Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 11, 2012 Share Posted February 11, 2012 (edited) Senior Sun journalists arrested in police payments probe Rupert Murdoch is flying to London after five of tabloid's most senior staff are arrested inongoing inquiry into alleged bribery By David Batty, Damien Pearse and agencies guardian.co.uk, Saturday 11 February 2012 06.15 EST The Sun has been plunged into crisis following the arrest of five of its most senior journalists, including the deputy editor, over allegations of inappropriate payments to police and public officials. The five Sun journalists are understood to be: deputy editor Geoff Webster, picture editor John Edwards, chief reporter John Kay, chief foreign correspondent Nick Parker and reporter John Sturgis. The Sun's editor, Dominic Mohan, said: "I'm as shocked as anyone by today's arrests but am determined to lead the Sun through these difficult times. I have a brilliant staff and we have a duty to serve our readers and will continue to do that. Our focus is on putting out Monday's newspaper." A News International source said Mohan was "not resigning" but added that it was "obviously a dramatic day for him". Sky News reported that Rupert Murdoch is flying into the UK to reassure Sun staff that he will not close the paper in the wake of the latest arrests. The worsening crisis at the tabloid could have wider ramifications for the Murdoch media empire, according to some media experts. Clive Hollick, former chief executive of United Business Media, said the latest arrests could intensify the Foreign Corrupt Practices Act investigation into News Corp in the US. In a post on his Twitter account he added that the arrests "may lead to fines, director oustings and asset sales". He also suggested that the developments could lead to the broadcasting watchdog Ofcom review Murdoch's control of Sky television in the UK. Hollick tweeted: "Will Ofcom conclude that Sun arrests on top of hacking render NI not fit and proper to hold #Sky license and make them sell shareholding?" A Surrey police officer, 39, a Ministry of Defence employee, 39, and a member of the armed forces, 36, were also arrested at their homes on Saturday on suspicion of corruption, misconduct in a public office and conspiracy in relation to both. The new arrests at Britain's bestselling newspaper will further rock News International, which is still reeling from the closure of the Sun's sister title, the News of the World last year, after it emerged that journalists had hacked the phone of murdered schoolgirl Milly Dowler. The journalists, aged between 45 and 68, were arrested at addresses in London, Kent and Essex on suspicion of corruption, aiding and abetting misconduct in a public office, and conspiracy in relation to both these offences. They are being questioned at police stations in London and Kent. News Corporation, the parent company of News International which owns the Sun and the Times, confirmed that five Sun staff were among those arrested today. It said its Management and Standards Committee (MSC) had provided information to the Elveden investigation which led to the arrests and had also provided the option of "immediate legal representation" to those arrested. "News Corporation remains committed to ensuring that unacceptable news-gathering practices by individuals in the past will not be repeated and last summer authorised the MSC to co-operate with the relevant authorities," it said. "The MSC will continue to ensure that all appropriate steps are taken to protect legitimate journalistic privilege and sources, private or personal information and legal privilege. "News Corporation maintains its total support to the ongoing work of the MSC and is committed to making certain that legitimate journalism is vigorously pursued in both the public interest and in full compliance with the law." The arrests come two weeks after four former and current Sun journalists and a serving Metropolitan police officer were arrested over alleged illegal police payments. Senior Sun employees Chris Pharo, 42, and Mike Sullivan, along with former executives Fergus Shanahan, 57, and Graham Dudman, were named by sources as suspects facing corruption allegations. All five were released on bail. Surrey police confirmed a serving officer was arrested at the officer's home address on Saturday as part of Operation Elveden. A spokesman said: "Surrey police has been working closely with Operation Elveden since it was established in 2011, with a number of its officers seconded to the [Metropolitan Police Service] to assist with the investigations. "On learning about the involvement of one of its officers, the force immediately referred the matter to the Independent Police Complaints Commission (IPCC)." Assistant Chief Constable Jerry Kirkby said: "The force takes matters of this nature extremely seriously and we will not hesitate to respond robustly to allegations where there is evidence to support them." Deborah Glass, deputy chair of the IPCC, said: "Today's arrests are further evidence of the strenuous efforts being undertaken to identify police officers who may have taken corrupt payments." The MoD refused to comment. Officers from Operation Elveden made the arrests between 6am and 8am as part of the investigation into allegations of inappropriate payments to police and public officials. Operation Elveden, which runs alongside the Met's Operation Weeting team, was launched as the phone-hacking scandal erupted last July with allegations about the now-defunct News of the World targeting Milly Dowler's mobile phone. Its remit has widened to include the investigation of evidence uncovered in relation to suspected corruption involving public officials who are not police officers. All home addresses of all eight detained men are being searched and officers are also carrying out searches at the offices of News International in Wapping, east London, the Metropolitan police said. " Edited February 11, 2012 by Douglas Caddy Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 11, 2012 Share Posted February 11, 2012 Eight held in corruption probe The Independent By Laura Harding Saturday, 11 February 2012 Five employees of The Sun, a serving Surrey Police officer, a serving member of the armed forces and a Ministry of Defence employee were arrested today over allegations of inappropriate payments to police and public officials. Five men aged between 45 and 68 were arrested at addresses in London, Kent and Essex on suspicion of corruption, aiding and abetting misconduct in a public office, and conspiracy in relation to both these offences. They are being questioned at police stations in London and Kent. The men were named by Sky News as deputy editor Geoff Webster, chief reporter John Kay, picture editor John Edwards, chief foreign correspondent Nick Parker, and John Sturgis, who is a news editor. A 39-year-old serving Surrey Police officer, a 39-year-old Ministry of Defence employee and a 36-year-old member of the armed forces were also arrested at their homes on suspicion of corruption, misconduct in a public office and conspiracy in relation to both. They are being questioned, at police stations in London and Wiltshire. A statement from News Corporation, parent company of News International which owns The Sun and The Times, confirmed that five employees of The Sun were among those arrested today. It said its Management and Standards Committee (MSC) had provided information to the Elveden investigation which led to the arrests and had also provided the option of "immediate legal representation" to those arrested. "News Corporation remains committed to ensuring that unacceptable news-gathering practices by individuals in the past will not be repeated and last summer authorised the MSC to co-operate with the relevant authorities," it said. "The MSC will continue to ensure that all appropriate steps are taken to protect legitimate journalistic privilege and sources, private or personal information and legal privilege. "News Corporation maintains its total support to the ongoing work of the MSC and is committed to making certain that legitimate journalism is vigorously pursued in both the public interest and in full compliance with the law." Officers from Operation Elveden made the arrests between 6am and 8am as part of the investigation into allegations of inappropriate payments to police and public officials. Operation Elveden - which runs alongside the Met's Operation Weeting team - was launched as the phone-hacking scandal erupted last July with allegations about the now-defunct News of the World targeting Milly Dowler's mobile phone. The home addresses of all eight suspects are being searched and officers are also carrying out searches at the offices of News International in Wapping, east London, the Metropolitan Police said. Surrey Police confirmed a serving officer was arrested at the officer's home address today as part of Operation Elveden. A spokesman said: "Surrey Police has been working closely with Operation Elveden since it was established in 2011, with a number of its officers seconded to the MPS to assist with the investigations. "On learning about the involvement of one of its officers, the force immediately referred the matter to the Independent Police Complaints Commission (IPCC)." Assistant Chief Constable Jerry Kirkby said: "The Force takes matters of this nature extremely seriously and we will not hesitate to respond robustly to allegations where there is evidence to support them." A Ministry of Defence spokeswoman today said: "We do not comment on ongoing investigations." PA Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 11, 2012 Share Posted February 11, 2012 The Sun shocker at the heart of its newsroom The tabloid faces its most serious crisis since Murdoch's takeover, with journalists reportedly stunned at arrests and angry at management By Dan Sabbagh guardian.co.uk, Saturday 11 February 2012 09.27 EST Some time this morning, Dominic Mohan, the editor of the Sun, would have received an uncomfortable phone call. Five more of his reporters and executives had been arrested on suspicion of making corrupt payments to public officials – taking the total to 10. One of those held on Saturday is his deputy, Geoff Webster. But he is not the only senior executive who has been held this year: another was former deputy editor Fergus Shanahan. It is not an exaggeration to say that the sheer number of arrests, and their seniority, means that the paper has been plunged into its most serious crisis since Rupert Murdoch relaunched the title in 1969. Details as to why the journalists have been arrested remain sketchy for the moment but what is clear is that the Operation Elveden investigation into allegations of corrupt payments made by journalists to police officers has been widened to encompass other public officials at the armed forces and presumably elsewhere. The mood amongst reporters is, in the words of one, "stunned" – which is probably an understatement – coupled with a worry as to where this will end. Could a tip-fee paid five years ago now be considered a bribe? There is no shortage of anger, too. Some of it is directed at the Guardian, stemming from the newspaper's earlier exposé of the News of the World phone-hacking scandal, although much is aimed at the company's Management and Standards Committee that has been providing information to the police which led the Elveden squad to make all its arrests. It did not take long, either, for speculation to surface from outside Wapping that the Sun could close. At lunchtime, the beleaguered Dominic Mohan issued a rare public statement to shore up the situation, making it clear that he would stay on, "determined to lead the Sun through these difficult times" and that "our focus is on putting out Monday's newspaper". The message was clear: there would be no resignations, and above all, no immediate closure of the newspaper that is dear to Rupert Murdoch's heart. However, the police enquiry is far from complete and it is unclear what evidence has prompted the police arrests or even when the alleged offences occurred. Until there is a better picture as to what went on at the Sun it is impossible to form a view as to whether there was a systemic problem to match the industrialised nature of phone hacking as practiced at the News of the World. For now, the absence of detail also means that the wider public has not formed a view about what has happened at the Sun. Remember, it was a wave of public revulsion that brought the News of the World to the brink last summer. The scale of uncertainty is such that it is impossible to predict with confidence what will happen next. But if the Elveden investigation is not yet over: one thing is clear – a punch-drunk Sun is owned by an organisation that is at war with itself Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 12, 2012 Share Posted February 12, 2012 (edited) Key paragraph at end of article published by Murdoch owned paper: "In a statement, legislator Tom Watson, a vocal critic of News Corp. who sits on a parliamentary committee investigating phone hacking, said the arrests 'show this is no longer only about phone-hacking. It goes to the very heart of corporate governance of the company led by Rupert Murdoch.'" ------------------------------------ Sun Journalists Arrested as Bribe Probe Widens The Wall Street Journal By JEANNE WHALEN February 11, 2012 LONDONBritish authorities investigating potential cases of journalists paying bribes for information arrested another round of high-ranking employees of News Corp.'s tabloid The Sun, and said they are now probing suspected payments not just to police but to other public officials. The arrests deepen News Corp.'s problems in a high-profile scandal involving illicit reporting tactics. While the scandal began at the company's now-closed News of the World tabloid, its spread to the Sun threatens to tarnish the biggest-selling newspaper in News Corp.'s stable. With a daily circulation of about 2.7 million, the Sun is the most widely read newspaper in Britain and among the biggest globally. London's Metropolitan Police said officers arrested eight people early Saturday morning on suspicion of corruption, including a serving police officer, an employee of the Ministry of Defence and a serving member of the armed forces. Late Saturday, police said the eight arrested individuals had been released without charge on bail, pending further inquiries. The other five arrested are Sun employees. They include deputy editor Geoff Webster, chief reporter John Kay, chief foreign correspondent Nick Parker, picture editor John Edwards and John Sturgis, a member of the news desk. The men couldn't immediately be reached for comment. "I'm as shocked as anyone by today's arrests but am determined to lead the Sun through these difficult times'" said Dominic Mohan, editor of the Sun, in a statement. "I have a brilliant staff and we have a duty to serve our readers and will continue to do that. Our focus is on putting out Monday's newspaper." The arrests follow an earlier round two weeks ago, when police arrested four current and former Sun employees and a police officer. The men were later released on bail without charge. News Corp. owns The Wall Street Journal. News Corp. Chairman Rupert Murdoch, meanwhile, is set to arrive in London later this week. According to a person familiar with the matter, Mr. Murdoch plans to assure the Sun's staff that he neither plans to close nor sell the paper. This person said plans to launch a Sunday version of the title continue. In an email Saturday to his staff, Tom Mockridge, chief executive of News International, News Corp.'s U.K. newspaper unit, said: "You should know that I have had a personal assurance today from Rupert Murdoch about his total commitment to continue to own and publish The Sun newspaper." He said Mr. Monhan "is committed to leading the paper through this difficult period and, while today's arrests are shocking, we need to support him and his team to serve the loyal readers of The Sun and produce a great paper for Monday." In a sign that News Corp. may view the arrests as excessive, Mr. Mockridge added that he had "today written to the Independent Police Complaints Commission to seek clarification from them about the process of independent oversight of the police investigation." The bribery investigation is one of three under way into alleged illegal reporting tactics. The others are focusing on interception of voice-mail messages and emails, also known as phone hacking and computer hacking. In their statement Saturday, police said the remit of their bribery investigation has widened to include suspected corruption by both police officers and other public officials. Arrested Saturday were a 39-year-old male police officer for the suburban county of Surrey; a 39-year-old woman working for the Ministry of Defence; and a 36-year-old man in the armed forces, police said. A spokeswoman for the Ministry of Defence declined to comment on the arrests. Surrey Police couldn't immediately be reached to comment. All of the eight arrested are being questioned at police stations in and around London, and their home addresses are being searched. Police said they are also searching the offices of News International, News Corp.'s U.K. newspaper unit. Revelations of widespread phone hacking at the News of the World last summer forced News Corp. to close the tabloid and to pay millions of pounds to settle civil lawsuits filed by phone hacking victims. Even as civil suits are resolved, however, possible criminal cases still loom. U.K. authorities have arrested about 30 people in connection with the probes, including former Sun and News of the World editors and reporters. No one has been charged. Last summer, News Corp. established what it calls an autonomous committee to liaise with police and provide any documents requested by investigators. The Management and Standards Committee is also conducting its own investigation into News International's three remaining newspapersthe Sun, the Times of London, and the Sunday Times. In its statement, News Corp. said the Management and Standards Committee provided police with the information that lead to Saturday's arrests. "News Corporation remains committed to ensuring that unacceptable news gathering practices by individuals in the past will not be repeated," the statement said. The bribery investigation began last year, after a lawyer hired by News Corp. to assist with an internal investigation reviewed emails sent by News of the World employees and said he found "blindingly obvious" evidence of "corrupt payments" to police. The company then passed these emails to police. In 2003, Rebekah Brooks, a former editor of the News of the World and the Sun, told a parliamentary committee: "We have paid the police for information in the past." She later backtracked from the assertion, and, asked about it last summer at another parliamentary hearing, said: "I can say that I have never paid a policeman myself; I have never knowingly sanctioned a payment to a police officer." Speaking before a parliamentary committee last summer, Mr. Murdoch said: "Let me be clear in saying: Invading people's privacy by listening to their voice mail is wrong; paying police officers for information is wrong. They are inconsistent with our codes of conduct and neither has any place in any part of the company that I run." The new focus on The Sun, however, is likely to intensify criticism, of News Corp. In a statement, legislator Tom Watson, a vocal critic of News Corp. who sits on a parliamentary committee investigating phone hacking, said the arrests "show this is no longer only about phone-hacking. It goes to the very heart of corporate governance of the company led by Rupert Murdoch." Edited February 12, 2012 by Douglas Caddy Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 12, 2012 Share Posted February 12, 2012 Poster's note: It increasingly appears that Murdoch, his son and other cohorts may face criminal prosecution in both the U.K. and the U.S. in the coming months. -------------------------------------- News Corp faces renewed threat of prosecution in US following Sun arrests Investigation of alleged bribery under Foreign Corrupt Practices Act is greatest danger to Rupert Murdoch's media empire By Ed Pilkington in New York guardian.co.uk, Saturday 11 February 2012 17.32 EST The latest Operation Elveden arrests sharply increase the danger to News Corporation of potential multimillion dollar fines by US authorities as part of the continuing investigation into alleged bribery of public officials under the Foreign Corrupt Practices Act (FCPA). The eight arrests escalate the FCPA crisis for the company by extending the allegations of bribery from the News of the World to the Sun newspaper, and by broadening its scope from police officers to other public officials. An official from the Ministry of Defence and a member of the armed forces were also arrested for alleged corruption and "misconduct in a public office". The threat of prosecution under the FCPA constitutes the greatest danger of the phone-hacking scandal for Rupert Murdoch's media empire. It could expose the company to tens of millions of dollars in fines and the risk of imprisonment of its executive officers. It would also bring the scandal to America, which is the financial heart of the global company. News Corporation's headquarters are on Manhattan's Sixth Avenue, which is why the company is susceptible to the FCPA, a law introduced in the 1970s to hold US-based companies accountable for acts of bribery and corruption abroad. Mike Koehler, an expert in FCPA law at Butler university, said Saturday's arrests marked an escalation in the risk of an FCPA prosecution. "This spreads the alleged bribery to a completely different newspaper, to a different segment of the company and to other public officials," he said. Eric Holder, the US attorney general, launched a preliminary investigation into News Corporation's activities last July. The FBI is known to be involved in the investigation on both sides of the Atlantic. It is also understood that the US Securities and Exchange Commission (SEC) is conducting its own inquiries. The SEC takes an interest in cases where false financial information has been provided – in the case of News International, the use of false names in company records and accounts to disguise the recipients of bribes from journalists could fall into that category. In September, the US justice department reportedly approached News Corporation directly and asked for information on alleged bribes of police officers. Koehler said that the FCPA inquiry is likely to consider whether any News Corp executives were culpable. "The DoJ and SEC wouldn't be doing their job if they didn't ask what the executive officers of the company knew about the corruption and whether they authorized it, or did anything to stop it." James Murdoch, Rupert's younger son who serves as chairman of News Corp's European arm, has faced questioning in the British parliament over how much he knew about phone hacking at the News of the World. The scale of any penalties that flow from the FCPA investigation would be based on a calculation of how much benefit the company derived from any corruption. Against that, mitigating factors would be taken into account such as the extent of co-operation given to the investigating authorities by the company. That helps explain why News Corp has bent over backwards in recent months to assist the police by handing over evidence of possible wrongdoing, to the dismay of some of its own journalists. The costs of an FCPA prosecution can be severe. The largest fine in FCPA history was imposed in 2008 against Siemens for $800m (£507.8m), while the heaviest prison term was handed out last October to Joel Esquenazi, who is now serving 15 years in jail for bribery of telecoms officials in Haiti. To protect itself, News Corp has hired a battery of world-class FCPA lawyers led by Mark Mendelsohn, former chief of the DoJ's FCPA section. The team also includes Brendan Sullivan, a famously tough trial lawyer who represented Oliver North during the Iran-Contra hearings Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 12, 2012 Share Posted February 12, 2012 Murdoch media empire engulfed in scandal as Scotland Yard's net spreads Increasing arrests and suspicions of bribery puts News Corporations' global interests under greater scrutiny By Jamie Doward guardian.co.uk, Saturday 11 February 2012 16.07 EST Dark rumours were swirling as long ago as last spring, when Rupert and James Murdoch paid three unprecedented visits to Wapping in the space of a month. Not only were father and son considering closing the scandal-racked News of the World, went the chatter on the Wapping grapevine, but its sister paper, the Sun, was also in the line of fire. Back then the fears seemed outlandish, born of the febrile atmosphere around the Sunday title that was to bring about its demise last July. There was little evidence the toxic allegations of malpractice would spread to the daily tabloid. But what seemed incredible last year is now being discussed openly in Fleet Street following the arrests of five Sun employees on suspicion of bribing public officials. They follow the arrest of four other current and former Sun executives and journalists in January – and the separate arrest of a reporter on the paper the previous November – on similar suspicions. The drip, drip nature of the arrests is in danger of becoming a flood. What started as a separate, but minor, line of investigation for the Metropolitan police team predominantly charged with examining allegations of phone hacking now threatens to become an epic bribery scandal of equal gravity. A total of 21 people have now been arrested in the bribery probe, Operation Elveden, including three police officers, though no one has yet been charged. Those arrested include Rebekah Brooks, the former chief executive of Murdoch's News International, the company that owns the Sun, and ex-News of the World editor Andy Coulson, who went on to become prime minister David Cameron's communications chief. That the arrests are linked to alleged bribes paid not just to police officers but prison staff and Ministry of Defence officials, confirms Scotland Yard is throwing its net wider as it seeks to root out corruption. The arrest of an MoD official may invite speculation that the Official Secrets Act could have been breached. The investigation is expected to examine allegations of payments from other non-Murdoch titles to officials soon. But it is the Sun that is currently feeling the heat. Yesterday the paper attempted to put a brave face on things. "I'm as shocked as anyone by today's arrests but am determined to lead the Sun through these difficult times," said the paper's editor, Dominic Mohan. "I have a brilliant staff and we have a duty to serve our readers and will continue to do that. Our focus is on putting out Monday's newspaper." The allegations will revive concerns that News International is too close to the police, including officers at the most senior levels. Andy Hayman, the Met's counter-terrorism expert who led the original phone-hacking investigation, was criticised after he was made a columnist for the Times. Toxic allegations that the Yard failed to take allegations of endemic phone hacking on the News of the World seriously did for the careers of both the Met's commissioner, Paul Stephenson, and his deputy, John Yates. Now it is the mirror image of this relationship that is damaging the Sun. The paper's journalists are said to be furious that the arrests have been triggered by information supplied to the Yard by the Management and Standards Committee (MSC), an independent committee set up by the New York-based News Corporation, the parent company of News International. Following the first set of arrests, a News International source suggested it was intent on "draining the swamp", a comment that provoked fury among the company's journalists. In a statement, the MSC said it was ploughing through a mass of information as it seeks to ensure "that unacceptable news gathering practices by individuals in the past will not be repeated". The committee has given a team of advisers, lawyers and forensic IT staff a broad remit to search for any evidence of wrongdoing. Significantly, the investigation is not confined to the now defunct News of the World. Overseen by Will Lewis, the former Telegraph executive, the committee is working closely with the law firm Linklaters, which is conducting a review of all three remaining News International titles – the Sun, the Times and the Sunday Times. "The MSC is authorised to conduct internal investigations to fulfil its responsibilities in relation to News International's papers," the committee said in a statement. "It has powers to direct News International staff to co-operate fully with all external and internal investigations, and to preserve, obtain and disclose appropriate documents." Chaired by Lord Grabiner QC and reporting directly to Joel Klein, executive vice-president and board director of News Corp, the committee's team is examining some 300m emails and what one insider described as "masses of hard copy". "They are looking at more information than one person could read in an entire lifetime," the insider said. What the committee finds has potentially huge implications, not just for Murdoch's UK newspapers, but the mogul's empire, which stretches across Europe to the US, Latin America and Australia. Legal experts speculate that the bribery allegations could lead to the broadcasting watchdog, Ofcom, reviewing Murdoch's stake in Sky television. Under UK law, owners must prove they are "fit and proper" to own media interests. Any evidence suggesting News International titles were engaged in the corruption of officials could also trigger an investigation by the US authorities into breaches of the Foreign Corrupt Practices Act (FCPA) which prohibits corrupt payments to foreign government officials. It is this – the threat of the cancer spreading outside the UK and eating away at an empire that includes Fox News and 20th Century Fox film studios, and last year had revenues of $34bn (£21.5bn) – that really worries Murdoch's lieutenants. "We're more frightened by the [uS justice department] than we are of Scotland Yard," a source close to News Corp told Reuters last year. "All Scotland Yard can go after is News International, but the justice department can go after all of News Corporation." One person close to News Corp suggested fears about an investigation being launched under the FCPA were overblown. But News Corp is clearly concerned about the possibility. Last year it hired Mark Mendelsohn, the deputy chief of the fraud section in the criminal division of the US department of justice, and an expert on the act. Combing through the potential evidence being presented to the MSC is proving painstaking work. Some of it is in the form of emails that had sat for years in the archives of Harbottle & Lewis, the law firm commissioned by News International following the original phone-hacking allegations that saw the News of the World's royal editor, Clive Goodman, jailed in 2007. A one-paragraph letter supplied by Harbottle & Lewis to News International, and presented to the parliamentary inquiry into phone hacking, stated that senior editors on the paper were unaware of Goodman's "illegal actions". The letter appeared to corroborate claims made by News International executives that there was no evidence criminal activity on the paper went beyond one rogue reporter. In response to a question by the Tory MP Philip Davies about whether Goodman was working alone, Colin Myler, the News of the World's then editor, said: "I conducted this inquiry with Daniel Cloke, our director of human resources. Over 2,500 emails were accessed because we were exploring whether or not there was any other evidence to suggest, essentially, what you are hinting at. No evidence was found; that is up to 2,500 emails." But when the former director of public prosecutions, Lord Macdonald, was hired by a law firm acting on behalf of News Corp to review some of the emails a vastly different picture emerged. Macdonald told parliament that it had taken him "about three minutes, maybe five minutes" to determine that the emails contained evidence of possible criminality. "I can't imagine anyone looking at that file and not seeing crime," said Macdonald, who recommended the file should be handed over to the Yard. In one email contained in the file it is alleged a senior News International journalist agreed a police contact should receive a "four-figure sum" for leaking a confidential document containing the movements, locations and phone numbers of members of the royal family. Brooks, Coulson's predecessor on the News of the World, told parliament last year she had no knowledge of payments the Sun might have made to police officers in exchange for information. Yesterday's arrests will place this denial once again under scrutiny. It will also add piquancy to the second stage of Lord Justice Leveson's inquiry that reconvenes at the end of this month and will examine "the relationships between the press and police and the extent to which that has operated in the public interest". Leveson's inquiries are going to be made considerably more difficult by the fact that a significant cast of characters will be reluctant to give evidence for fear of prejudicing any future corruption trials. Coincidentally, Rupert Murdoch is rumoured to be flying in to London this week. Insiders at News Corp, which last week disclosed the phone-hacking scandal had so far cost it almost $200m, maintain it is a prearranged visit that has nothing to do with the latest allegations dogging Murdoch's newspaper interests. They insist Murdoch has no control over the release of evidence to the Met or how it conducts its investigations. Some News Corp employees have claimed Murdoch will use the trip to reassure Sun staff their title is safe. Anxious journalists on the bestselling paper will look back to last May when Murdoch flew in to tackle the furore engulfing the News of the World, a cash cow that produced annual profits of more than £10m. The paper was closed within two months. The Sun may have its enemies, but many on Fleet Street will be hoping that history is not about to repeat itself. Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 12, 2012 Share Posted February 12, 2012 Ian Burrell: How far will Rupert Murdoch go to save the Currant Bun? The Independent By Ian Burrell Sunday, 12 February 2012 Is this the end of The Sun? Rupert Murdoch is reportedly flying to the UK, ostensibly to save a newspaper he has loved since he bought it in 1969 from being engulfed by an unprecedented police bribery scandal. But as Tom Mockridge, the loyal Antipodean lieutenant he has placed in charge of his wobbling British newspaper empire, issued an assurance to The Sun's staff that the media mogul had a "total commitment" to continue publishing the paper, journalists on the tabloid were beginning to doubt it had a future. The News of the World was shut down last July apparently to create a firewall that would protect the more lucrative brand of the daily sister paper from being burned by the phone-hacking scandal. Many News of the World evacuees were given refuge at The Sun. But in recent months staff on the daily have felt anything but protected by News International (NI) and certainly not by the News Corp Management and Standards Committee (MSC), which is operating from separate offices within NI and has a remit to clean up the company's reputation. The MSC has made available to the Metropolitan Police a vast cache of internal emails which are being sifted carefully for words that might relate to criminal activity. The Sun's journalists are scared. The shockwaves began in November with the arrest of the popular district reporter Jamie Pyatt, who was based in Windsor and known for his royal scoops. Then police arrested Cheryl Carter, The Sun's beauty editor and, more importantly, former executive personal assistant to ex-Sun editor and NI chief executive Rebekah Brooks. By the end of January, raids had been carried out on the homes of four current and former members of The Sun staff: Mike Sullivan, the veteran crime reporter; head of news Chris Pharo; former deputy editor Fergus Shanahan; and former managing editor Graham Dudman. These were people at the very heart of The Sun's news operation. The Sun has always been published with a swagger of self-confidence, from the days when Mr Murdoch put editor Larry Lamb in charge and changed it from a left-leaning publication to the home of Page Three girls. But there's not much confidence on the Currant Bun at the moment. Word quickly leaked back that the January raids had been no gentle knock on the door. Some of the searches took 13 hours and were carried out by teams of up to six officers, some of them highly experienced detectives seconded from elite squads. Those arrested yesterday included a serving Surrey Police officer, a member of the armed forces and a Ministry of Defence employee. There were five Sun journalists among those held, all of them senior, including associate editor Geoff Webster, picture editor John Edwards, chief foreign correspondent Nick Parker and reporter John Sturgis. Most significantly from the point of view of The Sun newsroom, police arrested John Kay, the paper's multi-award winning chief reporter and a man revered by his colleagues. Kay, who is known for having excellent contacts in high places, is regarded as a model Sun reporter. Dominic Mohan, The Sun's editor, appealed for calm and claimed, on the paper's day off, that his staff were focused on producing Monday's edition. Hardly. Mohan appeared before the Leveson inquiry and emerged fairly unscathed. Dummy editions were also recently produced of a Sun on Sunday newspaper which NI had hoped to launch as a replacement for the News of the World. The arrests surely mean there is no prospect of that happening now. Even if Mr Murdoch flies in, it is not clear just what he could do to help his stricken paper. But with News Corp releasing financial figures last week showing that the phone-hacking scandal has cost the business £126m already, he will come under great pressure to withdraw from a sector that contributes very little to his global media empire and has become a severe embarrassment. The Sun, then, could go the way of the News of the World. Except that there are options. Waiting in the wings, should Mr Murdoch decide to sell, are other magnates – most notably Richard Desmond, who has previously expressed interest in getting his hands on The Sun. Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 12, 2012 Share Posted February 12, 2012 Hacking Cases Focus on Memo to a Murdoch By SARAH LYALL and RAVI SOMAIYA The New York Times February 11, 2012 LONDON — As dozens of investigators and high-powered lawyers converge on Rupert Murdoch’s News International in the phone hacking scandal, attention has focused on the printout of an e-mail excavated three months ago from a sealed carton left behind in an empty company office. Addressed to Mr. Murdoch’s son James, it contained explosive information about the scale of phone hacking at The News of the World tabloid — information James Murdoch says he failed to take in because he did not read the whole e-mail chain. The e-mail returned to cause trouble for News International, the British newspaper subsidiary of News Corporation, several weeks ago when the company said that it had been deleted from Mr. Murdoch’s computer. Even as people familiar with the investigations said the e-mail and its convoluted history will form a crucial part of the inquiry into allegations of a cover-up, the scandal appeared to be widening on Saturday, as senior journalists at News Corporation’s Sun tabloid were arrested. Tracing the story of the e-mail, which was found in November and first became publicly known in December, also sheds light on the intrigue surrounding Mr. Murdoch, the company’s heir apparent, and on efforts to protect him from the scandal. Embroiled in three separate police operations, a parliamentary investigation, a judicial inquiry and a flurry of civil suits with potentially hundreds more waiting in the wings, News Corporation has begun to provide information that suggests a broader sweep of hacking activity at News International than was suspected even recently and more widespread knowledge within the company of past efforts to cover it up. This new level of cooperation includes the release of damaging material from an internal investigation that is being overseen by executives who, observers say, are using it to consolidate their power within the company, a move that could come at James Murdoch’s expense. “There’s no good way out of it,” a former News International executive said, speaking on the condition of anonymity because of the continuing investigations. “If you put up your hand and say, ‘I’m going to investigate myself and here’s what I found’ and you’re not very open and full about it, then it looks like just another cover-up.” A Stunning Find When The News of the World was closed in disgrace last summer, its newsroom was locked down by security guards. In mid-November, News International says, investigators searching the seized materials found a storage crate that, judging from a sticker on top, had come from the office of Colin Myler, the paper’s last editor. It contained a hard copy of an e-mail sent from Mr. Myler to James Murdoch on June 7, 2008 — in reality a chain of e-mails that included correspondence with Tom Crone, then an in-house lawyer. “Unfortunately, it is as bad as we feared,” Mr. Myler wrote, speaking of an impending lawsuit that threatened to reveal that voice-mail hacking at the paper was endemic. Last summer, senior News International officials said that in that crucial period in 2008, Mr. Murdoch had neither been told about nor shown documentation of the extent of the illegality at The News of the World. The discovery of the e-mail, said one former official with knowledge of the situation, was completely unexpected. Why did it take so long to come to light? Linklaters, a law firm working for News International, said that a junior employee found it in November, but that senior officials at the firm did not know about it until December. In addition, Linklaters told the Commons Committee on Culture, Media and Sport, Mr. Myler’s electronic copy had been lost “in a hardware failure” on March 18, 2010,” while Mr. Murdoch’s electronic copy had been deleted on Jan. 15, 2011 during an “e-mail stabilization and modernization program.” Big corporations routinely delete old e-mails. Between April 2010 and July 2011, News International discussed e-mail deletion with HCL Technologies, which manages its e-mail system, on nine occasions, according to a letter HCL wrote to Parliament last summer. Most of the reasons were mundane. But in January 2011, HCL said, News International asked whether HCL was capable of helping “truncate” — meaning delete — “a particular database” in the e-mail system. The question came shortly after disclosures in a civil suit brought by the actress Sienna Miller raised fears that material about widespread phone hacking at The News of the World might become public. News International did not explain why it wanted the deletion. HCL said it could not help and told the company to look elsewhere. It is not clear whether the “stabilization and modernization program” that deleted the Murdoch e-mail was linked to News International’s request to “truncate” data. But it is clear that on Jan. 15, when the deletion took place, the company knew it was facing civil and potentially criminal inquiries. A month earlier, reacting to new information from the Miller and other cases, it had suspended the News of the World’s news editor, Ian Edmondson, on suspicion of phone hacking, and handed some material to the police. Questions of Timing “They were aware that it was highly likely the police were going to reopen the investigation,” said a person with knowledge of the police operation. Indeed, the police formally began Operation Weeting, their new phone hacking investigation, 11 days later. At every step of the inquiry, the company has said it is cooperating fully and producing relevant documents. A News International spokeswoman declined to comment for this article. A lawmaker involved in the investigations of News International said the company’s primary objective from the beginning was to protect James Murdoch, and everything else was secondary to that. News International has given a variety of explanations for where its e-mails are and whether the ones it says it cannot find were deleted, lost in computer malfunctions or simply mislaid. In December 2010, a News of the World editor told a court in Scotland that “many e-mails had been lost when they were being moved to an archive in India.” That same month, a company lawyer said that News International could not retrieve e-mails written more than six months earlier. Neither of those statements was true, the company admitted later. Last month, the High Court judge presiding over the civil lawsuits brought by hacking victims castigated News International for what he called its “startling approach” to e-mail. Even after the company received a formal request for documents, said the judge, Geoffrey Vos, “a previously conceived plan to delete e-mails was put in place by senior management.” Speaking of News Group Newspapers, a division of News International, Justice Vos said that “they are to be treated as deliberate destroyers of evidence.” At every step of the way, News International has declared that it is doing its utmost to investigate wrongdoing. In 2007, for example, the company told Parliament that it had conducted an investigation by asking an outside law firm, Harbottle & Lewis, to examine 2,500 e-mails, and that the investigation had cleared senior editors of wrongdoing. Many of those supposedly cleared were later arrested on suspicion of phone hacking and other charges. And Harbottle & Lewis said later that the investigation had, in fact, been requested by News International to answer allegations in an unfair dismissal claim brought by a former employee involved in phone hacking — not to look for more phone hacking at the paper. News International has pledged to police itself better. Under the aegis of its four-person Management and Standards Committee, it says it will comb through and make available every piece of potentially pertinent material. Dozens of people — lawyers, forensic accountants, forensic computer technicians and, sometimes, police officers — gather daily at a site in Thomas More Square here, where News International is based, searching through 300 million e-mails and other documents stretching back a decade. “Pooling data together is a complex matter,” said a person with knowledge of the standards committee. “What is recoverable is a very technical operation.” Mr. Murdoch, who is News Corporation’s deputy chief operating officer and chairman and chief executive of its international division, relocated to New York recently as part of a long-planned move meant to help ease him into place to eventually take over News Corporation from his father. But the younger Mr. Murdoch’s position seems much more precarious than it did a year ago. Last month, he resigned from the board of GlaxoSmithKline, Britain’s biggest drug company, and last summer his dream of helping News Corporation take over all of British Sky Broadcasting shattered to pieces in the wake of the hacking scandal. People in New York say that Mr. Murdoch is confident he will survive the storm back in London. But questions still abound about what he knew, and when. When he got the 2008 e-mail, News International was facing a major potential disaster: a lawsuit brought by Gordon Taylor, chief executive of the Professional Footballers’ Association, who said that his phone had been hacked and that he had proof. That is what the e-mail told Mr. Murdoch. Farther down in a short message chain, there was mention of a “nightmare scenario” of legal repercussions, and an acknowledgment that The News of the World “knew of and made use of the voice mail information” it illegally acquired from Mr. Taylor’s cellphone. Mr. Myler’s e-mail was sent on a Saturday afternoon. Mr. Murdoch replied minutes later, agreeing to a meeting that Tuesday and telling Mr. Myler he would be home “if you want to talk before.” Soon afterward, Mr. Murdoch approved a settlement of more than $1.4 million to Mr. Taylor, an unprecedented amount for such a case. In December, he said he had not read the whole e-mail. “I am confident that I did not review the full e-mail chain at this time or afterwards,” he said in a letter to the Commons culture committee. “I would also like to take this opportunity to reaffirm my past testimony that I was not aware of evidence that either pointed to widespread wrongdoing or indicated that further investigation was necessary.” Contradicting Mr. Murdoch’s testimony, Mr. Myler and Mr. Crone told Parliament they had informed him about the damaging aspects of the Taylor lawsuit. Mr. Murdoch has consistently denied this, declaring that he approved the settlement because of his lawyers’ advice, not because he knew the underlying details. Jo Becker contributed reporting from New York. Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 13, 2012 Share Posted February 13, 2012 Rupert Murdoch faces revolt from angry Sun staff Daily Telegraph 9:55PM GMT 12 Feb 2012 Rupert Murdoch faced revolt from his own staff last night after journalists angry at the arrest of five senior colleagues accused the company of throwing them to the wolves The 80-year-old media mogul is due to fly into Britain this week to address workers at his Wapping plant and reassure them of his commitment to his remaining UK newspaper titles. But he is likely to receive an angry reception after five more journalists on The Sun were arrested as part of Operation Elveden – the police investigation into allegations of bribery. The arrests early on Saturday morning were the second batch in a fortnight and sources close to the investigation have indicated that they are unlikely to be the last. Journalists at The Sun yesterday accused the company’s Management Standards Committee (MSC), which handed a huge amount of information to detectives, of allowing a “witch-hunt” to take place. One angry journalist said the MSC were behaving like “reptiles” in order to protect the reputation of Mr Murdoch’s parent company in the United States. Ten senior journalists on the paper have now been arrested and bailed as detectives probe allegations that they illegally paid police officers and other public officials for information. But staff at the paper said many of the allegations were “pathetic” and related to matters many years ago where reporters had bought drinks for contacts in the pursuit of legitimate stories. Writing in today’s Sun, the newspaper’s influential former political editor, Trevor Kavanagh, questioned the proportion of police resources being used in the inquiry and warned that the heavy handed police tactics left it looking like a “witch hunt”. Staff also described a highly charged atmosphere when the paper’s current editor Dominic Mohan spoke to his newsroom yesterday afternoon. One source at Wapping said: “There is a real feeling of anger, deepening anger but also defiance about what is going on. But there is not the mood for a strike, as people are loyal to the paper but perhaps not the people who run it." “It is looking like a witch hunt now. Some of the allegations being made against people are pathetic – reporters taking contacts out for drinks, meals and the like. The police don't really seem to understand how journalism works. "Huge teams of counter-terrorism detectives are turning up at people's homes, going through their children's underwear drawers about things which happened seven or eight years ago. This is behaviour reminiscent of Mugabe.” While Mr Murdoch’s attention will this week be focused on The Sun, pressure over the scandal continues to mount in the United States, where shareholders are angry at the damage the scandal is doing to the wider brand. It has also now emerged that the Sun’s parent company News Corp could face an investigation by officials under the Foreign Corrupt Practices Act. The law allows American companies to be fined hundreds of millions of dollars for illegal activities overseas. The phone hacking scandal at the News of the World has already cost the company more than £125 million and many investors want to see News Corp extricate itself from such a damaging association. Mr Murdoch is now likely to face renewed pressure to overhaul how the company is run with experts suggesting he may now be forced to split his roles of chairman and chief executive. “From a (News Corp) shareholders point of view, you want this to end and for people to move on," said Charles Elson, director of the Weinberg Centre for Corporate Governance at Delaware University. "The key is to make sure it doesn't happen again," he added. A memo to News International staff from the company’s chief executive Tom Mockridge assured staff of Mr Murdoch’s continuing determination to own and publish The Sun, which is said to be the newspaper closest to his heart. But Tom Watson, the Labour MP and a member of the Culture and Media Select Committee, said the latest development would prove extremely difficult for News Corp to deflect. He said: “This moves things on considerably because this is no longer just about hacking phones and it is no longer just about one newspaper. “This goes to the very heart of corporate governance. This is now about three newspapers; the News of the World, the Times and the Sun and it involves allegations of phone hacking, email hacking and illegal payments for information. “Inevitably it takes it to the top of the company because that is where the culture is set. That is why New York is worried because they know you cannot just blame it on individual rogue reporters. “If what we are told is true, if illegal payments have been made to police and other public officials this is hugely damaging. I am certain there will be more arrests at The Sun.” He added: “I think he has lost a lot of the trust of the front line staff because what you have got is a lot of very experienced and senior news reporters who now feel that they are being used as pawns in a political game to save the business.” Mr Watson added that it had to be Mr Murdoch who bore the ultimate responsibility for what happened in his newsrooms. Speaking on The Sunday Politics on BBC ONE he said: “It’s Rupert Murdoch who appoints bullies like Kelvin MacKenzie or small children like Dominic Mohan to run these very big institutions of national newspapers of repute. He’s responsible for the personnel that allow these things to happen and he must take responsibility for it.” Link to comment Share on other sites More sharing options...
Douglas Caddy Posted February 13, 2012 Share Posted February 13, 2012 News Corp may face US inquiry after Sun arrests at News International Alleged bribery in Britain could fall foul of US law as editor Dominic Mohan tries to rally staff at embattled tabloid By Ed Pilkington in New York, Dan Sabbagh and Andrew Sparrow The Guardian, Sunday 12 February 2012 Rupert Murdoch's News Corporation faces the increased prospect of a full-blown inquiry by US authorities as part of the continuing investigation into alleged bribery of public officials under America's foreign corrupt practices act, after the latest round of arrests of senior journalists at the Sun this weekend. Murdoch flies into London later this week on a scheduled visit at a time of turmoil for Britain's best-selling newspaper, with journalists on the title angry at News Corp's powerful management and standards committee (MSC), whose reconstruction and trawl of the company's email archive produced the evidence that led to the arrests. It was reported on Sunday night that the solicitor representing the family of Milly Dowler and other alleged victims of phone hacking is to take his battle against Murdoch to America. Mark Lewis, one of several lawyers representing clients pursuing claims against the News of the World for phone hacking, is expected to travel to the US within the next few weeks to meet American lawyers to discuss legal action there. Lewis was reported to be in the "advanced stages" of bringing at least one case against Murdoch's company in the US. He said he was "not prepared to deny" the reports. The threat of prosecution under the US foreign corrupt practices act, which criminalises the payment of bribes to public officials by American companies overseas, exposes the company to tens of millions of dollars in fines and the risk of imprisonment of its executive officers – and brings the fallout from the phone-hacking scandal to the US. Mike Koehler, an expert in FCPA law at Butler University, said the arrests on Saturday marked an escalation in the risk of an FCPA prosecution for the New York-based News Corp. "This spreads the alleged bribery to a completely different newspaper, to a different segment of the company and to other public officials," he said. Eric Holder, the US attorney general, launched a preliminary investigation into News Corp's activities last July. The FBI is known to be involved in the investigation, but its activities have so far remained at an early stage, and News Corp sources in London say the investigators have not yet been in direct contact with the MSC. Meanwhile, over at a battered Sun the editor, Dominic Mohan, addressed staff on Sunday in an effort to rally journalists. Those not on duty came into work to show solidarity with a title whose future is uncertain after the arrest of the 10 journalists on suspicion of making corrupt payments to public officials. Those arrested on Saturday include Geoff Webster, the deputy editor; John Kay, chief reporter; Nick Parker, chief foreign correspondent; Mike Sturgis, reporter; and John Edwards, picture editor. It is understood that the evidence giving rise to their arrests by police from Operation Elveden dates back a number of years; it also prompted the arrest the same day of a Surrey police officer, a Ministry of Defence official, and a member of the armed forces. Anger and frustration in the Sun's newsroom is in part directed at the MSC – with one Sun reporter, Jen Blackburn, the girlfriend of Chris Pharo, the news editor arrested as part of the same inquiry last month, tweeting quotes from media lawyer Mark Stephens. The lawyer had said, according to Blackburn, that "the police are effectively working towards criminalising the relationship between … the media and their sources, and that is a bad thing for democracy". However, those close to the MSC, which ultimately reports to Rupert Murdoch, believe the body had acted in the only way it could if there was evidence of possible crime. "What are we supposed to do? Payments to public officials are illegal," said one person close to the body, noting that after allegations that News Corp had participated in a cover-up of phone hacking, now the company was being accused of being too helpful to the police. It is also understood that the US Securities and Exchange Commission (SEC) is conducting its own inquiries. The SEC takes an interest in cases where false financial information has been provided – in the case of News International, the use of false names in company records and accounts to disguise the recipients of bribes from journalists could fall into that category. Koehler said the FCPA inquiry was likely to consider whether any News Corp executives were culpable. "The Department of Justice and SEC wouldn't be doing their job if they didn't ask what the executive officers of the company knew about corruption and whether they authorised it, or did anything to stop it." The scale of any penalties that flow from the FCPA investigation would be based on a calculation of how much benefit the company derived from any corruption. Against that, mitigating factors would be taken into account such as the extent of co-operation given to the investigating authorities by the company. That helps explain why News Corp has bent over backwards in recent months to assist the police by handing over evidence of possible wrongdoing, to the dismay of some of its own journalists. British law also states that the police cannot serve warrants on News Corp for evidence if the company is co-operating with inquiries. The costs of an FCPA prosecution can be severe. The largest fine in FCPA history was imposed in 2008 against Siemens for $800m (£508m), while the heaviest prison term was handed out last October to Joel Esquenazi, who is now serving 15 years in jail for bribery of telecoms officials in Haiti. Meanwhile, interviewed on BBC1's Andrew Marr Show and Radio 4's The World This Weekend, culture secretary Jeremy Hunt said that since the Leveson inquiry started he had been "shocked" to learn that misconduct in the newspaper industry was "a lot more widespread than I initially thought". Commenting on the role played by News International, he said: "I think it's greatly to their credit that News Corporation are co-operating fully [with the police investigation]. I wish they had done so a bit earlier." He added that there was more agreement than he expected on the "tougher" form of newspaper regulation that will emerge in the light of the phone-hacking scandal, a system that the minister said he wanted in place before 2015. "We've come much closer to a consensus on the way forward than I would perhaps have predicted," he added. While stressing that he wanted to put off any decisions until Leveson has published his recommendations, Hunt indicated that he agreed with the broad thrust of the consensus that was emerging. "I think everyone recognises that we don't want politicians telling people what to write, so no statutory regulation of press content," Hunt said. "But we do need a much tougher system to deal with newspapers who step out of line. Basically, the body that decides on whatever the punishments are for newspapers who step out of line needs to be fully independent from newspaper proprietors and current newspaper editors." Link to comment Share on other sites More sharing options...
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