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Rupert Murdoch and the Corruption of the British Media


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Ofcom rules BSkyB 'fit and proper' but criticises conduct of James Murdoch

Broadcasting regulator Ofcom has ruled that BSkyB is “fit and proper” to hold a broadcasting licence but has savaged James Murdoch for his “failure” to take action over phone hacking at News of the World.

By Katherine Rushton

8:08AM BST 20 Sep 2012

The Telegraph

http://www.telegraph...es-Murdoch.html

• Ofcom: James Murdoch's behaviour 'ill-judged'

• Regulator says Sky passes 'fit and proper' test

• Warning that further evidence could change decision

• BSkyB shares rise 1pc in early trading

The regulator said in a statement that Mr Murdoch’s behaviour was “difficult to comprehend and ill-judged” and that he “repeatedly fell short” of his duties as chairman, raising questions about his “competence” and his attitude towards wrongdoing at the companies he was in charge of.

Mr Murdoch was chairman of News International until February 2011. He held the same position at BSkyB until April this year, when he stepped down admitting that he was a “lightening rod” for criticism of the broadcaster.

However, Ofcom’s ruling that BSkyB is “fit and proper” lifts a cloud that had long been hanging over the pay-TV broadcaster.

The regulator has sweeping powers to revoke the licence of any broadcaster whose owners or management it does not deem to be “fit and proper” to hold such power. It has rarely used the longstanding piece of legislation but it dusted it off in summer 2011 to throw into turmoil News Corp’s £8bn bid to take full control of BSkyB. News Corp eventually pulled the bid.

The regulator finally came to its conclusions today. In a statement it said that Sky passed the “fit and proper“ test, based on “the evidence currently available and having taken into account all the relevant factors”.

However, this was tempered with a stark reminder to BSkyB to keep its behaviour in check, it warned that that could change.

“Ofcom’s duty to be satisfied that a licensee is fit and proper is ongoing. Should further relevant evidence become available in the future, Ofcom would need to consider that evidence in order to fulfil its duty,” the regulator said.

It noted that various police investigations could turn up new evidence that would count against BSkyB in a “fit and proper” test.

Its judgment also included a lengthy personal attack on Mr Murdoch.

British Sky Broadcasting Group

“We consider James Murdoch’s conduct, including his failure to initiate action on his own account on a number of occasions, to be both difficult to comprehend and ill-judged,” it said. “James Murdoch’s conduct in relation to events at NGN [News Group Newspapers, the News Corp subsidiary which published the News of the World] repeatedly fell short of the exercise of responsibility to be expected of him as CEO and chairman.”

It acknowledged a letter in which James Murdoch said he shared responsibility for the fact that News Corp “took too long to come to grips” with the phone hacking and police bribery scandal, adding tersely: “We agree”.

“ We consider that the events set out above raise questions regarding James Murdoch’s competence in the handling of these matters, and his attitude towards the possibility of wrongdoing in the companies for which he was responsible,” it added.

Ofcom said James Murdoch's conduct in relation to events at the News Corp newspapers had repeatedly fallen short, adding there was no evidence to suggest he had deliberately engaged in wrongdoing.

BSkyB said: "Ofcom is right to conclude that Sky is a fit and proper broadcaster. As a company, we are committed to high standards of governance and we take our regulatory obligations extremely seriously. As Ofcom acknowledges, our track record of compliance in broadcasting is good."

Ian Whittaker, an analyst at Liberum, said: "This was, on balance, expected but it definitely removes an overhang on the stock. This wasn't seen as a huge threat to the business but ... this was seen as a risk, because Ofcom and Sky don't have a great relationship."

News Corp said in a statement that it was proud of James Murdoch's "distinguished record" and it disagreed with some of Ofcom's criticisms, which are "not at all substantiated" by evidence.

"As Ofcom itself acknowledged, James deserves credit for his role as chief executive, then chairman and now non-executive director, in leading Sky to an outstanding record as a broadcaster, including its excellent compliance record," it added.

BSykB shares rose 1pc in early trading.

Edited by Douglas Caddy
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James Murdoch as Fox TV head would be a 'slap in the face' to shareholders

News that Rupert Murdoch's son could soon lead Fox Networks met with shock and anger from News Corp shareholders

By Dominic Rushe in New York

guardian.co.uk,

Friday 21 September 2012 12.39 EDT

News Corp shareholders have reacted angrily to news that James Murdoch could soon run the media giant's flagship Fox TV channel.

The son of News Corp chairman Rupert Murdoch was heavily criticised on Thursday by British regulators over his role in the hacking scandal. On the same day, news broke he may soon be given control of some of the media firm's most high profile assets.

One dissident shareholder called the news a "slap in the face for shareholders, not to mention victims of the hacking scandal".

Murdoch is reportedly set to take over the running of Fox Networks, News Corp's US TV business that includes its national Fox channel, home to American Idol and The Simpsons, and cable businesses including FX.

The news, first reported by the Financial Times, came the same day that British regulator Ofcom issued a report that took Murdoch to task over his role in the phone-hacking scandal.

James Murdoch was head of News Corp's UK newspaper business as the hacking scandal broke. The regulator concluded he "repeatedly fell short of the conduct to be expected of as a chief executive and chairman" and that his lack of action in was "difficult to comprehend and ill-judged".

But in a ruling that handed a major victory to James' father Rupert Murdoch, Ofcom ruled that BSkyB, the satellite broadcaster whose largest shareholder is News Corp, remains a fit and proper owner of broadcast licences.

News Corp declined to comment on the reports of James Murdoch's role at US operations.

Julie Tanner, director of socially responsible investing for New York-based Christian Brothers Investment Services, said: "This move proves that Rupert Murdoch is running News Corp solely for the benefit of the Murdoch family."

Last year Tanner led a shareholder revolt that ended with the majority of independent shareholders voting against the re-election of James Murdoch, his brother Lachlan and most of the News Corp board. She has lodged a similar resolution ahead of this year's meeting.

"While we are disappointed – and frankly, somewhat amazed – by this move, I also hope it sheds light on the importance of voting for our resolution to appoint an Independent Chair at the New Corp AGM. This is a clear example of the need for improved corporate governance at the company," she said.

The promotion would come as News Corp continues to face legal investigations into the phone-hacking scandal on both sides of the Atlantic. The justice department is investigating News Corp under the foreign corrupt practices act (FCPA), a statute that prosecutes US firms found guilty of bribing foreign officials.

Some 50 people have so far been arrested in the UK over the scandal, including two journalists at The Sun newspaper and a policeman arrested this week during an ongoing bribery investigation.

James Murdoch resigned as chairman of News International, the media group's UK newspaper business, in February and from BSkyB in April. He relocated to the US and has so far kept a lower profile. But his elevation would likely to trigger a new round of criticism from shareholders and pressure groups.

In August lobby group Citizens for Responsibility and Ethics in Washington (Crew) filed a complaint with the broadcast regulator the Federal Communications Commission (FCC) arguing News Corp was unfit to run US broadcasting licenses.

Crew executive director Melanie Sloan said the possible elevation of James Murdoch would strengthen their case. "It seems to me that there is a lot more to come out about James Murdoch. There are plenty more questions that need answers," she said.

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Senior detective charged with passing information to the News of the World

A senior detective has been charged over allegations that she passed information to the News of the World newspaper.

It is understood the arrests were made as part of an investigation into allegations that detectives working in Scotland Yard’s anti-corruption unit were paid thousands of pounds for information

By Martin Evans, Crime Correspondent

The Telegraph

6:50PM BST 24 Sep 2012

Detective Chief Inspector April Casburn, 53, the former head of the National Terrorist Financial Investigation Unit at Scotland Yard, was arrested as part of Operation Elveden, the Met investigation into inappropriate payments by journalists.

She is the first person to be charged in connection with the investigation, which was set up in the wake of the phone hacking scandal and has so far seen 50 arrests.

DCI Casburn has worked for the Met for 17-years having joined following a career in the financial sector.

She headed up two Fraud Squad teams within the City of London police before moving to the National Terrorist Financial Investigation Unit (NTFIU).

The unit uses financial intelligence to investigate the funding of terrorist organisations both at home and overseas.

The charge relates to an incident in September 2010 when DCI Casburn allegedly contacted a journalist at the now defunct Sunday tabloid and offered to provide sensitive information.

It is not clear whether she asked for or received any payment for the information.

A spokesman for the Crown Prosecution Service said: “We have concluded, having carefully considered the file of evidence, that there is sufficient evidence for a realistic prospect of conviction and that it is in the public interest to charge DCI Casburn with misconduct in public office.

“The particulars are that on 11 September 2010, April Casburn, being a public officer, and acting as such, without reasonable excuse or justification, wilfully misconducted herself to such a degree as to amount to an abuse of the public’s trust in that office. This charge relates to an allegation that DCI Casburn contacted the News of the World newspaper and offered to provide information.”

DCI Casburn is due to appear before Westminster Magistrates’ Court on Monday October 1.

Operation Elveden is running alongside Operation Weeting which was launched to investigate phone hacking at the News of the World.

A total of 70 officers are working on the investigation and five police officers have so far been arrested.

The News of the World was closed down by owner Rupert Murdoch following revelations that journalists from the newspaper had hacked hundreds of people’s phones from celebrities and politicians to members of the public and victims of crime.

Particularly damaging were claims that reporters had hacked into the voicemail of the murdered schoolgirl Millie Dowler.

A total of eight people have so far been charged in connection with phone hacking allegations including News International’s former Chief Executive Rebekah Brooks and David Cameron’s former director of communications Andy Coulson.

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Phone-hacking claims against News International near 300

Claimants include executors of Jade Goody's estate, Davina McCall's husband and Tara Palmer-Tomkinson

By Lisa O'Carroll

guardian.co.uk,

Tuesday 25 September 2012 06.03 EDT

Nearly 300 damages claims against News International have been filed at the high court over alleged phone hacking. Photograph: Martin Godwin

The high court is to hear details of nearly 300 damages claims against News International for alleged News of the World phone hacking, from people including the late reality TV star Jade Goody.

At least 155 new civil lawsuits – involving 174 individuals – for invasion of privacy were lodged with the high court by the 14 September deadline set by Mr Justice Vos, the high court judge overseeing the process.

Vos will also be given an update from News International on its separate phone-hacking compensation scheme, which has accepted 137 claims, at a high court case management conference on Tuesday.

The extent of phone hacking at the now-closed News of the World is expected to be confirmed by lawyers for both the claimants and News International. The 292 new claims are in addition to 58 lawsuits settled by the publisher earlier this year.

Many of the names on the court register of claims are not well-known figures to the public and are what Lord Justice Leveson called "collateral damage" – relatives of celebrities or victims of crime, such as the parents of former nanny Louise Woodward, who was found guilty of manslaughter in the US when she was 19, and Lorna Hogan, the former girlfriend of Calum Best.

Janet Woolf, the mother of Ken Livingstone's eldest child, is one who believes she was targeted because of her connection to a famous politician. Others who have not sought the public spotlight include Matthew Robertson, husband of Davina McCall.

TV producer Kate Jackson, who made a fly-on-the-wall documentary about Goody as she was dying of cancer in 2009, is also making a claim along with two of the reality TV star's best friends, Simon Bridger and Danny Hayward. As executors of her estate, they are making the claims on her behalf.

Lauren Pope, now known as a star from reality TV show The Only Way is Essex, is suing in relation to a night out with Prince Harry in 2004.

Other civil claims not previously reported include actions taken by Yousef Bhailok, the former secretary general of the Muslim Council of Britain and Tara Palmer-Tomkinson.

On the entertainment front, former EastEnders actor Lacey Turner is suing as is Claire Powell, Kerry Katona's former agent, and Footballers' Wives actor Laila Rouass.

Suzanne Dando, the former British Olympic gymnast and ex-girlfriend of former Sky Sports presenter Andy Gray, is also claiming damages for alleged hacking.

Joining the ranks of current and former Premier League footballers seeking damages are Noel Whelan, Chris Kiwomya and Neil Ruddock.

Among the other claimants who filed before Vos's 14 September deadline were actor Hugh Grant, the former Labour leader Neil Kinnock and his wife Glenys, and former secretary of state for trade and industry Stephen Byers.

The names of claimants will be confirmed before Vos during the case management conference on Tuesday.

Earlier this month, he ordered a three- to four-day hearing in a bid to clear the way for potential trials of the second wave of phone-hacking claims against News International sometime after May next year.

This second tranche of claims has become a protracted matter – this is ninth hearing this year – with ongoing legal arguments over what News International should and could reveal to claimants.

The publisher settled 58 claims in January and February this year, including suits brought by Jude Law, Steve Coogan and Sienna Miller

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Exclusive: 'News of the World computer hacker' exposed Scotland Yard mole

After working undercover for nine years, murder suspect claims Derek Haslam was compromised by private detective with links to News International

The Independent

September 25, 2012

http://www.independent.co.uk/voices/comment/exclusive-news-of-the-world-computer-hacker-exposed-scotland-yard-mole-8174924.html

In his first interview since his release from jail (above), Jonathan Rees lifts the lid on hacking, alleged police corruption and his work for Rupert Murdoch's News of the World.

***

A POLICE “mole” who secretly infiltrated a private detective firm for Scotland Yard was exposed after he was identified by an alleged computer hacker with links to the News of the World.

Former Met police officer Derek Haslam worked undercover for nine years with Jonathan Rees, the co-founder of Southern Investigations, who was a suspect for one of London’s most notorious unsolved murders.

However, the 65-year-old’s cover as “Joe Poulton” was blown when the personal computer he used to send covert intelligence back to his police handlers was compromised by the alleged hacker, who cannot be named for legal reasons.

The man – who is a known associate of Rees and whom we shall call Mr Anderson - has previously been accused of computer hacking for the News of the World.

In an interview with Independent Voices, Rees said: “(Someone) gave (Mr Anderson) an IP address and he identified Haslam from that.”

When asked if that was done through “legal means”, he replied: “Well, there’s ways and means, technical ways and means, I would imagine legal means…I think so, I don’t know.”

Haslam’s undercover work for the Met began in 1997 when he was asked to infiltrate Southern Investigations to gather evidence on Rees, who was a suspect for the murder of his former business partner. Daniel Morgan, 37, was found with an axe embedded in his skull in a Sydenham pub car park in 1987.

Haslam claims one of Southern Investigations’ main clients was News of the World executive Alex Marunchak whose name was “constantly mentioned” inside the firm.

While he was undercover, Haslam suspected his computer had been hacked in 2006 when it started “running slowly” at home in Norfolk.

He refused to speak to Independent Voices because he is currently suing Scotland Yard. However, we obtained a confidential briefing he passed to investigators.

He said: “I told my (handlers) something is up so they said they’d check it. I handed over my computer and they examined the hard drive and confirmed it had been hacked.”

“They found a document on it and said ‘any idea what this is’ and I said ‘that’s one of my intelligence documents’ and I said ‘who’s got it’? They said ‘it’s been taken off your computer’…and there’s a virus been put on your computer.”

At the time, Rees admits he was in possession of one of Haslam’s 11-page intelligence reports to his handlers, which includes allegations that Southern Investigations burgled MPs to obtain embarrassing information it could sell to newspapers.

When asked how he got it, Rees replied: “I received…a copy of, er, this six-week window of his reports. Now, the police…believe that was (leaked to me) by a sympathetic source within (the Met).

When asked if Mr Anderson had hacked the report, Rees replied: “Not to my knowledge. That is something he denies…he absolutely denies it. We just can’t say how that document was obtained.”

However, a document dated 2012 written by Rees’ lawyers – seen by Independent Voices – identifies Mr Anderson as the possible source.

“In late 2006 Rees received a document that appeared to be a print of a computer file, in the format of a draft report or reports to “handlers” by “Joe Poulton”,” it read. “Rees was convinced from factual references that the author must be Derek Haslam.”

In a footnote to the document, his lawyers wrote: “This seems to have been “hacked” from Haslam’s computer by Mr Anderson.”

A source close to Rees’ legal team claims to possess a taped confession from Mr Anderson, who is said to admit hacking Haslam’s computer.

When asked how the police obtained evidence on computer hacking, Rees replied: “It may have come from Mr Anderson’s computer, but there won’t be any links to me…and I would think nothing to do with Alex Marunchak, either.”

When pressed on the allegation, he replied: “Thank God Mr Anderson was out there and exposed Haslam for what he was…if he did hack Haslam, good.”

When contacted by Independent Voices, Mr Anderson said: “I cannot talk to you about any of this.”

However - when told of the allegations in Rees’ legal papers - he added: “That is something that they will have to justify and prove.”

When asked whether he had made a confession of computer hacking, he replied: “Once again, they will have to justify, support and prove that.”

Finally, when he was asked whether he legally identified Haslam “through an IP address”, Mr Anderson replied: “That is really something that…you should take up with Jonathan Rees. I am not prepared to go into this discussion unless my solicitor is present.”

In a bizarre twist, a freelance journalist who has known Rees and Mr Anderson for more than 15 years wrote openly to the Met in June 2007 and enclosed a copy of the Haslam intelligence report.

The undercover agent had mentioned Sylvia Jones in the briefing and the ex-crime reporter was complaining to Scotland Yard to say his allegations about her work were false.

When asked by Independent Voices how she obtained a copy of the potentially unlawfully obtained document, Jones said it had been posted to her anonymously shortly before she made the complaint. She did admit seeing an extract 12 months earlier but refused to say who showed it to her.

Last week, Independent Voices revealed Haslam warned his handlers that Southern Investigations were looking for “dirt” on police and politicians in a bid to “control” them.

We also disclosed how Southern Investigations put former Met commissioner Lord Stevens under surveillance in 1999.

Haslam worked undercover for nine years with Rees, trying to solve one of London’s most high-profile unsolved murders. However, when his cover was blown he claims Scotland Yard offered him the chance to go into the witness protection programme – a system he claims he saw repeatedly compromised by the agency.

Rees said this was “wholly untrue”. It is understood Haslam turned down the offer of protection, decided he would look after himself and asked for a payout. However, this is thought to have been rejected by the Met.

He is now suing Scotland Yard for failing in its duty of care to protect him. It is understood one element of his case centres on the Met’s failure to prosecute the offenders who compromised his computer.

Daniel Morgan’s brother Alastair said: “Last week, it was disclosed that Derek Haslam worked undercover at Southern Investigations for nine years, passing back widespread intelligence of criminality to the Met, who did absolutely nothing about it.

“Now, we discover that Haslam – who put his life on the line when he infiltrated this firm – was exposed by an alleged computer hacker who has worked on behalf of the News of the World. Again, the Yard did absolutely nothing.

“The whole case just gets murkier and murkier. The only avenue left is for Home Secretary Theresa May to order a judicial inquiry into my brother’s murder. The Met cannot be trusted to get to the bottom of all this.”

The fifth investigation into the Daniel Morgan murder collapsed last year and Rees was acquitted. Detectives working on the various criminal probes into News International have arrested around 80 different people so far. Rees and Marunchak, who supplemented his News of the World income by working as a Ukrainian translator for the Met for 20 years, are not among them.

A Scotland Yard spokesman said: “We are not prepared to discuss these matters

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Rebekah Brooks and Andy Coulson trial date set for September 2013

Former News International chief and No 10 spin doctor, plus 12 others, face charges linked to phone-

By Lisa O'Carroll

guardian.co.uk, Wednesday 26 September 2012 07.40 EDT

http://www.guardian.co.uk/media/2012/sep/26/rebekah-brooks-andy-coulson-trial-date

Rebekah Brooks and Andy Coulson have been told at the Old Bailey that they are not due to face a full trial until a year from now, in a hearing in which the former News of the World editors appeared in the dock of the central criminal court.

The woman who was most recently chief executive of News International and the man who acted as David Cameron's director of communications at No 10 were given a proposed trial date of 9 September 2013 by Mr Justice Fulford, who is presiding over two batches of charges against them and 12 others.

The two former editors, and the remaining defendants, spoke only to confirm their names at the beginning of the hearing in a crowded dock in court number one. All 14 were bailed at the end of the hearing.

Brooks sat impassively on her own at the back of the dock during an hour-long hearing that gave directions for the management of the two cases involving the 14 defendants.

Coulson sat in the front row flanked by three of his co-defendants, all former colleagues at the News of the World. Former assistant editor (news) Ian Edmondson sat on his right with ex-assistant news editor James Weatherup and former chief reporter Neville Thurlbeck on his left.

Court number one was packed with lawyers, mostly representing the defendants, with three rows of 18 wigged barristers present. Andrew Edis QC led for crown; next week he will do the same in the trial of Chris Huhne MP and his former wife, Vicky Price, who are accused of conspiring to pervert the course of justice.

John Kelsey-Fry QC, who previously successfully defended Harry Redknapp, was acting for Brooks. Clare Montgomery QC, who is acting for the Swedish government in its battle to extradite Julian Assange, was representing Coulson.

Brooks was dressed in a black and cream outfit while Coulson wore a grey suit and blue tie.

Andy Coulson arrives at the Old Bailey. Photograph: EPA

Coulson, Brooks and six others have been charged with conspiring to hack phones.

Brooks is also charged with three counts of conspiracy to pervert the course of justice. Six others face one count of conspiring to pervert the course of justice, including her husband Charlie, her former personal assistant Cheryl Carter and her ex-chauffeur Paul Edwards. All have been accused of agreeing to conceal evidence from detectives investigating phone hacking in July 2011.

The phone-hacking related charges follow an investigation by officers working as part of the Metropolitan police's Operating Weeting.

Apart from Coulson and Brooks, the others facing phone-hacking-related charges are Edmondson, Weatherup, Thurlbeck, former News of the World managing editor Stuart Kuttner, ex-news editor Greg Miskiw and a private investigator, Glenn Mulcaire.

Kuttner faces three charges, while Miskiw faces 10 charges. Edmondson 12 charges, Thurlbeck eight and Weatherup eight. Mulcaire is charged with allegedly hacking the voicemails of four people: Milly Dowler, Andrew Gilchrist, Delia Smith and the Rt Hon Charles Clarke.

Carter sat behind Coulson in the second row with Miskiw, while the third row was occupied by Brooks's husband Charlie, a racehorse trainer, and Mark Hanna, the head of security at News International.

Hanna, former security guard Daryl Jorsling and Lee Sandell, who worked for a company used by News International for security, also face the same charges of trying to conceal evidence from detectives in July 2012 at the height of the phone-hacking scandal.

There was initial confusion as all defendants present were invited to come into the dock in no particular order. It transpired there was insufficient room, leaving Edwards and Jorsling to step outside the dock and sit in officials' benches to the left.

After an hour of legal discussion, Fulford ordered a further hearing for 12-13 December before a possible full trial in September next year.

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Murdoch fights on as rebels plot to oust him

News Corp shareholders call for the roles of chairman and chief executive to be separated

By Guy Adams

The Independent

Sunday, 14 October 2012

Rupert Murdoch faces yet another day of reckoning this week, as some of his most vigorous critics gather in Los Angeles for what promises to be a highly fractious annual meeting of his media conglomerate.

The 81-year-old tycoon is preparing to take the stage of the Zanuck Theater in Hollywood to chair Tuesday's event. It will be only the second time he's publicly faced News Corporation shareholders since the phone-hacking affair catapulted his British tabloids to the centre of a global scandal.

In the audience will be a collection of dissident shareholders and corporate activists. They intend to take advantage of a rare opportunity to hold Mr Murdoch to account for his handling of the affair, which has closed the profitable News of the World, seen his takeover bid for BSkyB abandoned, and left him facing a bill estimated at around £550m to compensate victims.

Top of the rebel agenda is a resolution to remove Mr Murdoch as chairman, which he holds in conjunction with the post of chief executive. The motion calls for him to be replaced by an individual better equipped to deal with the "lax ethical culture and lack of effective board oversight" that has been laid bare by the "still emerging scandals".

The effort to oust Mr Murdoch is believed to be supported by at least 18 major investors, including the UK's Local Authority Pension Fund Forum (LAPFF). Its chairman, Ian Greenwood, said there is "nothing personal" about the motion. "Rupert Murdoch has created a lot of value for a lot of years and one can understand his feeling for the company. But he and his family have to realise that when a company is owned more than 50 per cent by other people, it changes the family's relationship to it."

However, as the Murdochs controversially hold 40 per cent of the voting shares – though only 12 per cent of the total – the motion is unlikely to pass, as Murdoch allies have enough to quash any dissenting motion.

However, Julie Tanner of Christian Brothers Investment Services, who co-authored the motion, says she hopes it will send a "clear message" that will embarrass Mr Murdoch into reforming the company. She points out that the reappointment of James Murdoch as deputy chief operating officer was opposed by almost 35 per cent of voters at last year's annual meeting. He was later forced to resign as chairman of the UK newspaper arm, News International.

Mr Murdoch Snr appears to be in a combative mood. He recently wrote on Twitter: "Busy preparing for next week's AGM. Signs pretty peaceful, but any shareholders with complaints should take profits and sell!"

The comment, in a year in which News Corp shares have risen from $17 to $24.50, has riled critics. "It shows an utter disregard for the co-owners of his company," Mrs Tanner said. "How can the chairman of a publicly owned company say something like that?"

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Phone hacking: Charlotte Church calls on Murdoch to apologise for tweets

News Corp chairman angers phone-hacking campaigners by labelling them 'scumbag celebrities' on Twitter

By Lisa O'Carroll

guardian.co.uk,

Monday 15 October 2012 08.07 EDT

Rupert Murdoch angered the Hacked Off lobby group which is campaigning for press reforms. Photograph: Jessica Rinaldi/Reuters

Charlotte Church has called on Rupert Murdoch to apologise and withdraw his comments after he called phone-hacking campaigners "scumbag celebrities" in a Twitter attack on the singer and others who are lobbying David Cameron to implement press reforms.

Church, whose family got a £600,000 payout from Murdoch for phone hacking earlier this year, went on Twitter on Monday to join the growing number of people who have rounded on the News Corporation chairman and chief executive for his remarks.

"It would be decent to withdraw & apologise for calling me, @CharlotteChurch and @jacquihames *scumbags*," Church said in a tweet.

She was responding to Murdoch's outburst on Saturday when he lashed out against the prime minister for meeting a group of phone-hacking campaigners, including Church and the former policewoman Jacqui Hames who is suing News International over alleged hacking by the News of the World.

He tweeted: "Told UK's Cameron receiving scumbag celebrities pushing for even more privacy laws. Trust the toffs! Transparency under attack. Bad."

Church and Hames are part of the Hacked Off lobby group which is campaigning for press reforms.

The group last week met with Cameron to discuss reports he was preparing to allow newspapers one more chance at self-regulation.

Murdoch's remarks on Twitter have angered many including Evan Harris, one of the founders of Hacked Off who said: "The mask has slipped. This is no longer the humblest day of my life Murdoch is it?"

Last year Murdoch went before a parliamentary select committee to apologise for the News of the World's hacking of the phone of murdered school girl Milly Dowler, calling his appearance as "the humblest day of my life". He also paid £3m to the Dowler family and charities of their choice in compensation.

Murdoch's remarks come days after the high court heard News International was facing more than 170 claims for damages for alleged phone hacking by the News of the World, including cases brought by Cherie Blair, Neil Kinnock, Sarah Ferguson and Joanne Lees, whose boyfriend was killed in the Australian outback.

On Twitter, Murdoch tried to back peddle for his "scumbag" remark telling Hames, he wasn't referring to her or Church, tweeting "not referring to these ladies" but then went on to make a direct attack on Hugh Grant, who is also part of Hacked Off and is also suing News International for alleged hacking.

When one Twitter user responded to Murdoch: "Scumbags? And your journalists and executives are what?", the media baron replied: "They don't get arrested for indecency on major LA highways! Or abandon love child's."

He then on Sunday linked the issue with the Jimmy Savile scandal.

"Likes of Saville further protected if we don't fight Cameron, dodgy celebrities in UK," he tweeted. "Could not happen in US."

Church hit back on Monday tweeting: "@rupertmurdoch What do you mean by 'dodgy'? My understanding of the word is 'lacking legitimacy', a term that befits NI before me or J.Hames".

Hames then tweeted: "When you're in a hole Rupert....Celebrities not scumbags, just 'dodgy,' Murdoch tweets".

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Rebekah Brooks's News International severance deal worth 'about £7m'

Payoff package for the former News International executive is far in excess of the £1.7m speculated on after her departure

By Dan Sabbagh and Patrick Wintour

The Guardian,

Monday 15 October 2012

Rebekah Brooks received a payoff worth about £7m after resigning as chief executive of News International at the height of the Milly Dowler phone-hacking crisis in July 2011.

The exact figure has never been disclosed by the Murdoch company – whose parent News Corporation holds its annual meeting on Tuesday – but one source said they believed it was between £6m and £8m.

An intimate of Rupert Murdoch, Brooks started out as a secretary at the News of the World in 1989, becoming editor of the News of the World and the Sun in succession.

She retained Murdoch's confidence as the phone hacking crisis intensified. After the News Corp patriarch flew into London in July last year, he took Brooks out for dinner, declaring that she was his "top priority" when questioned in the street by journalists.

The payoff package, far in excess of the £1.7m that was speculated about after her departure, comprised cash payments for loss of service, pension enhancement, money for legal costs, a car and an office.

News International declined to comment on the sum involved, but company insiders stressed there were "clawback" arrangements, which mean Brooks would have to pay some of the money back in certain circumstances.

It is understood that payback would be enforceable if Brooks was to be found guilty of a criminal offence relating to her employment. She is currently facing charges relating to interception of communications and obstruction of justice.

News Corp has not had to make any disclosure in public accounts, because its British companies have not reported their results to Companies House yet. News International companies have a financial year that ends on 30 June, so any filing covering the period of the Brooks payoff would not be due until next year.

The revelations about the size of Brooks's payoff are likely to be raised at the company's annual shareholder meeting at News Corp's Fox studios lot in Los Angeles. Some investors, such as the British group Hermes, are expected to vote against Rupert Murdoch remaining as chairman in the wake of the phone-hacking scandal, but the media tycoon controls 40% of the votes so he is unlikely to lose. The Independent newspaper reported on Tuesday that private emails between David Cameron and Brooks were withheld from the Leveson inquiry into press standards.

A government lawyer advised the prime minister that the emails involved were not "relevant". They were said to reveal the close friendship between Cameron and Brooks and were described by sources as containing "embarrassing" exchanges.

A Downing Street spokesman said: "All the material the inquiry asked for was given to them."

It is understood that there was an agreement between No 10 and the Leveson inquiry that Cameron would provide all emails and texts relevant to the News International bid for broadcaster BSkyB, as Cameron set out in his witness statement to the inquiry. Government sources said this was accepted by the Leveson inquiry and some texts or emails handed to the inquiry by Cameron, deemed to be on the margin of this definition, were not published by Leveson.

No 10 is not challenging the newspaper's claim that Cameron had sought legal advice on the nature of the exchanges to be given to Leveson.

Edited by Douglas Caddy
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Rebekah Brooks's News International severance deal worth 'about £7m'

Payoff package for the former News International executive is far in excess of the £1.7m speculated on after her departure

By Dan Sabbagh and Patrick Wintour

The Guardian,

Monday 15 October 2012

Rebekah Brooks received a payoff worth about £7m after resigning as chief executive of News International at the height of the Milly Dowler phone-hacking crisis in July 2011.

The exact figure has never been disclosed by the Murdoch company – whose parent News Corporation holds its annual meeting on Tuesday – but one source said they believed it was between £6m and £8m.

An intimate of Rupert Murdoch, Brooks started out as a secretary at the News of the World in 1989, becoming editor of the News of the World and the Sun in succession.

She retained Murdoch's confidence as the phone hacking crisis intensified. After the News Corp patriarch flew into London in July last year, he took Brooks out for dinner, declaring that she was his "top priority" when questioned in the street by journalists.

The payoff package, far in excess of the £1.7m that was speculated about after her departure, comprised cash payments for loss of service, pension enhancement, money for legal costs, a car and an office.

News International declined to comment on the sum involved, but company insiders stressed there were "clawback" arrangements, which mean Brooks would have to pay some of the money back in certain circumstances.

It is understood that payback would be enforceable if Brooks was to be found guilty of a criminal offence relating to her employment. She is currently facing charges relating to interception of communications and obstruction of justice.

Clearly a bribe to keep her from testifying against News International.

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David Cameron pressed to come clean over secret Rebekah Brooks emails

Furore mounts over 'embarrassing' messages revealed by The Independent

By Nigel Morris

The Independent

Thursday, 18 October 2012

David Cameron is under pressure to release private emails exchanged with Rebekah Brooks that he has withheld from the Leveson Inquiry, after extraordinary scenes in the House of Commons in which he refused to explain the messages to MPs.

A visibly agitated Mr Cameron was asked during Prime Minister's Questions to tell the Commons why he had not disclosed details of secret messages between him and Ms Brooks, the former News International chief executive, or publicly revealed their existence.

In defiance of parliamentary convention, he flatly refused to tell MPs any more about the messages, which he has not supplied to the Leveson Inquiry into press ethics.

The Independent disclosed this week that Downing Street was sitting on a cache of emails and text messages between the Prime Minister and Ms Brooks, as well as communications with Andy Coulson, the former News of the World editor. Mr Cameron held them back from the judicial inquiry after taking legal advice that they were not relevant to its remit.

In acrimonious Commons clashes, the Prime Minister lost his cool as he was challenged by a shadow minister over the disclosures - and then said he would not answer any questions from the MP.

Last night the deputy Labour leader, Harriet Harman, sought to increase the pressure on Mr Cameron by urging him to release the information.

Sources within the inquiry have confirmed to The Independent that it has received none of the Brooks-Cameron emails. Downing Street has stonewalled on the subject, not denying the existence of the messages, and repeating that the Prime Minister has co-operated fully with the inquiry.

The relationship between Mr Cameron and Ms Brooks was closely scrutinised by the inquiry, as were the Prime Minister's dealings with Mr Coulson, who became his media chief in 2007. Mr Coulson has been charged with conspiring to hack phones and perjury. Ms Brooks is awaiting trial on charges of conspiring to hack phones and conspiring to pervert the course of justice. She denies the charges and Mr Coulson denies any knowledge of phone hacking.

During a fractious session in the Commons, Chris Bryant, the shadow Home Affairs minister, asked Mr Cameron: "Why won't you publish all the texts, emails and other forms of correspondence between yourself and your office and Rebekah Brooks, Andy Coulson and News International so we can judge whether they are relevant? Is it because they are too salacious and embarrassing for you... or is it because there is one rule for the Prime Minister and another for the rest of us?" Before he delivered his question, Mr Bryant told Mr Cameron to "stop smiling" and added: "When the truth comes out, the Prime Minister won't be smiling."

Mr Cameron retorted: "Before answering this question, I would like everyone to recall you stood up in this House and read out a whole lot of Leveson information that was under embargo and you were not meant to read out, much of which turned out, about me, to be untrue, and you have never apologised. Until you apologise, I'm not going to answer your questions."

He was referring to an occasion in April when Mr Bryant, who received Leveson evidence because as a hacking victim he was a "core participant", quoted from documents submitted to Lord Justice Leveson which had not at the time been published.

Ms Harman wrote to the Prime Minister last night urging him to release details of all electronic contacts with senior News International figures. She said: "In order for the public to have total confidence it would be preferable for you to disclose all of the emails and let the Leveson Inquiry decide which are relevant."

Asked whether Mr Cameron was within his rights to refuse to answer the questions, the Prime Minister's official spokesman said: "He can give the answer he likes. They choose the questions, he chooses the answers."

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Murdoch bid for Los Angeles Times and Chicago Tribune mooted

Report says News Corp has made approaches about buying LA Times and its Chicago stablemate from Tribune Company

By Staff and agencies

guardian.co.uk, Saturday 20 October 2012 01.21 EDT

Rupert Murdoch's News Corporation is looking to bid for the Los Angeles Times, the paper has reported, adding Murdoch is also interested in buying its stablemate the Chicago Tribune from their parent company, the Tribune Company.

The Times said senior News sources confirmed executives had approached the two investment firms and a bank that hold Tribune's debt – the lenders will become its majority owners once it emerges from bankruptcy protection, possibly within months according to the LA Times.

The paper said a deal might require a waiver of federal laws that block ownership of newspapers and TV stations in the same market. Murdoch's Fox network has stations in Los Angeles in Chicago. Tribune also has interests in television stations, some of which carry programming from News Corp's TV channels or operate as Fox affiliates.

A bid for the LA Times alone could be worth as much as US$400m, the paper said.

On Friday, News Corp announced Roger Ailes will remain in charge of the Fox News Channel for the next four years. The news ended a protracted period of speculation about his contract negotiations.

The deal means Ailes will remain in control of Fox for the next presidential election season in 2016 and through the 20-year anniversary of Fox News, which Ailes has run since it was set up in 1996.

The terms of the new contract were not released. Ailes is already one of the highest-paid executives in television; he has received a base salary of $5m and a bonus of $1.5m a year for the past several years, as well as millions in additional compensation based on the financial performance of Fox News, according to public filings by News Corp.

In the fiscal year that ended in June, Ailes received $9m, paid in cash rather than stock, as a reward for Fox's record earnings, and $4m in stock awards tied to the performance of Fox Business which he also runs. His total compensation for the fiscal year was $21m, making him the third highest paid executive at New Corp behind Murdoch, who made $30m, and Chase Carey, the chief operating officer, who made nearly $25m.

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Daily Mirror publisher faces being sued over alleged phone hacking

Four civil claims filed at the high court in the first formal move for damages from any company outside News International

By Josh Halliday

guardian.co.uk,

Monday 22 October 2012 20.35 EDT

Sven-Goran Eriksson is one of four individuals to have filed a civil claim against Mirror Group Newspapers over alleged phone hacking Photograph: Nicolas Asfouri/Getty

The publisher of the Daily Mirror faces being sued over alleged phone hacking by four public figures, including ex-England football manager Sven-Goran Eriksson.

Four civil claims were filed against Mirror Group Newspapers at the high court on Monday in the first formal move for damages from any company outside Rupert Murdoch's News International.

The allegation by Eriksson relates to the Daily Mirror when Piers Morgan was editor. Morgan, now a primetime TV host on CNN in the US, has repeatedly denied knowledge of phone hacking at the title.

A spokesman for Mirror Group Newspapers (MGN) said: "We have no comment; we are unaware action has been taken at the high court."

The claims were filed by the solicitor Mark Lewis on behalf of Eriksson, former footballer Garry Flitcroft, actor Shobna Gulati, who played Sunita Alahan in Coronation Street and Anita in Dinnerladies, and Abbie Gibson, the former nanny to David and Victoria Beckham's children. The claims lodged on behalf of Gulati, Gibson and Flitcroft, allege phone hacking at either the Sunday Mirror or the People. MGN faced accusations of hacking during evidence to Lord Justice Leveson's inquiry into press standards, but has always said: "All our journalists work within the criminal law and the PCC [Press Complaints Commission] code of conduct and we have seen no evidence to suggest otherwise."

Lewis confirmed to the Guardian that the civil claims had been lodged, but said they had not yet been served on MGN. He added that he did not expect to file any further claims against the Daily Mirror's publisher this week.

Morgan edited the Daily Mirror between 1995 and 2004. He gave evidence to the Leveson inquiry in December when he repeatedly denied any knowledge of illegal newsgathering techniques at the tabloid. But in May, BBC Newsnight presenter Jeremy Paxman claimed to the inquiry that Morgan had personally shown him how to illicitly intercept voicemail messages at a lunch in September 2002.

Paxman claimed that at the same lunch Morgan had teased Ulrika Jonsson about the details of a private conversation she had had with Erikson, who was England manager at the time.

In one testy exchange with Robert Jay, the senior counsel to the Leveson inquiry, in December 2011, Morgan said: "Not a single person has made any formal or legal complaint against the Daily Mirror for phone hacking."

The four claims accuse the newspapers of a "breach of confidence and misuse of private information" relating to the "interception and/or misuse of mobile phone voicemail messages and/or the interception of telephone accounts".

Former Blackburn Rovers footballer Flitcroft told the Leveson inquiry in November that he had been hounded by tabloid newspapers over an extra-marital affair in 2001. Golati is the actor best known for playing Sunita Alahan in Coronation Street and, previously, Anita in Dinnerladies.

Lewis said no particulars of claim had been filed, but that relevant dates relating to the alleged activity were submitted to the high court. The individuals now have four months to serve particulars of claims on MGN. The merits of the claim remain to be tested.

The formal hacking allegations come weeks before Leveson is expected to outline a critical assessment of the ethics of the press in his report to prime minister David Cameron.

Trinity Mirror has robustly defended its decision not to launch an internal investigation into phone hacking at its titles. Sly Bailey, the former chief executive, told the Leveson inquiry in January that it was unhealthy for a company to investigate unsubstantiated allegations about itself.

Bailey said: "I don't think it's a way to conduct a healthy organisation to go around conducting investigations when there's no evidence that our journalists have been involved in phone hacking.

"There was no evidence and we saw no reason to investigate. We have only seen unsubstantiated allegations and I have seen no evidence that phone hacking has ever taken place at Trinity Mirror."

Trinity Mirror opened a review of its editorial "controls and procedures" following the hacking scandal in July 2011

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  • 2 weeks later...

James Murdoch reappointed as BSkyB director with 95% shareholder backing

No repeat of last year's rebellion over his handling of the News of the World phone-hacking scandal

By Mark Sweney

guardian.co.uk,

Thursday 1 November 2012 08.56 EDT

James Murdoch has been reappointed as a director of BSkyB with the support of 95% of shareholders at the company's annual general meeting.

Barring one investor labelling him as "toxic", Thursday's BSkyB AGM for 2012 experienced no repeat of the rebellion at last year's meeting in reaction to his handling of the News of the World phone-hacking scandal.

Making his first public appearance in the UK since April, when he stood down as chairman of BSkyB and then appeared before the Leveson inquiry into press ethics, Murdoch was oppposed by just 4.96% of company shareholders who voted.

A very small number of shareholders – less than 0.5% – withheld their vote at the AGM in central London.

Last year a third of independent shareholders voted against Murdoch's reappointment when he was still chairman. In Thursday's vote, just 8.8% of independent shareholders voted against Murdoch and less than 1% abstained.

There was some criticism of Murdoch from the floor with shareholder John Marshall saying that his presence on the board was "toxic" and damaged the public view of the business as long as he remained.

"He clearly failed to ask questions he should have asked at News of the World over phone hacking," Marshall said. "The name of Murdoch is toxic with a large number of investors. As long as he is on the board, that will reflect on the company."

Louise Rouse, a director of FairPensions, questioned his suitability given the recent criticisms by Ofcom of his handling of the phone-hacking scandal at News International.

"Given Ofcom's very strong criticism of his competence, what would you say to reassure shareholders concerned about this issue that James Murdoch is doing better [now]," Rouse said.

She queried why Murdoch had stepped down from two non-executive directorships at other companies but did not feel it was necessary to do so at BSkyB.

"He is not at Sotheby's or GlaxoSmithKline and it is the same sort of role he is occupying at BSkyB," Rouse said. "Major institutional shareholders should have to explain why they have changed their position and feel he is suitable at Sky, especially following Ofcom's report."

Murdoch was also the chairman of News International, before stepping down and withdrawing from all of his UK management responsibilities before amove to News Corporation's New York headquarters. He remains the deputy chief operating officer of News Corp, Sky's largest shareholder, owning 39.1% of the company.

Nicholas Ferguson, BSkyB chairman, said that there had been no discernible impact on BSkyB – financial or otherwise – of Murdoch remaining on the board.

"We've known James Murdoch for many, many years as chief executive and then chairman and have always seen the highest level of competence and integrity," he said. "On our judgment, he has always been a suitable member of the board and a valuable asset to the company."

Ferguson said the Ofcom report never found that James had done anything wrong or been involved in a cover-up over phone hacking.

"The board unanimously agreed he should stay as a director of the company [following the Ofcom report]," he said.

Murdoch faced a more substantial shareholder revolt at last year's meeting AGM, when almost 26% of investors failed to back his reappointment as BSkyB chairman, with 18.76% of them voting directly against him.

Despite Ofcom delivering scathing criticism in September of Murdoch's handling of the News of the World phone-hacking scandal at News International – stating that he repeatedly fell short of the conduct to be expected of a chief executive and chairman – the media regulator gave Sky a clean bill of health, saying the broadcaster remained a fit and proper holder of UK broadcast licences.

BSkyB has also been refreshing its board – departures have included Random House chief Dame Gail Rebuck and the former Post Office chairman Allan Leighton – after criticism from some investors about its independence.

The company said on Thursday that two more directors are to be replaced. Jacques Nasser has said he will not stand for re-election and Lord Wilson has announced his intention to retire.

Ferguson said that when the two new appointments are made the majority of BSkyB's independent directors will have joined in the last 18 months.

The satellite broadcaster is also understood to have waged a successful charm offensive among investor groups to convince them of the value of Murdoch's experience. He was Sky chief executive for four years from 2003

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