This week’s testimony by News International’s former lawyers and executives turned into a bit of a damp squib (executives and lawyers boring? How’s that?). But with the start of the Leveson Inquiry, and further arrests by the three police teams now investigatiing phone hacking, computer hacking and corruption of police officials, there’s no danger this schadenfreudefestschrift is going to go away.
So let me take this relative calm to explore British Prime Minister’s David Cameron’s disastrous decision to employ Andy Coulson, as his main media strategist.
It’s a fascinating tale, that gives a brilliant insight into what Gordon Brown described as the ‘criminal-media nexus‘ which explains the rise of Newscorp as the most powerful global media force.
This initially was a lighthearted intermission diary, supposing this would be a quiet Sunday as News International tried to manage the chaos engulfing them. But I was wrong.
UPDATE: Sir Paul Stephenson, the Met Commissioner, Britain’s senior police officer, has resigned because of his connections with the scandal. More news as this comes in. But this is affecting all levels of the British establishment. I hear now that the Serious Fraud Office is making forays into the News International books: this means that the payment to police officers is at a deeper and more complicated than first appeared. In company law, such payments would be “a gross misuse of shareholders money”.
In Sir Paul Stephenson’s resignation statement there’s a concealed timebomb; a comparison between his employee (Wallis a former News of the World deputy editor) now arrested in the Hackergate probe, and the Prime Minister’s chief press officer, David Coulson (a former editor of the same newspaper).
Now let me turn to the reported displeasure of the Prime Minister and the Home Secretary of the relationship with Mr Wallis.
The reasons for not having told them are two fold. Firstly, I repeat my earlier comments of having at the time no reason for considering the contractual relationship to be a matter of concern. Unlike Mr Coulson, Mr Wallis had not resigned from News of the World or, to the best of my knowledge been in any way associated with the original phone hacking investigation.
That’s a barb and a half. As Robert Peston says
Stephenson statement implies that Met’s employment of Wallis was less controversial than David Cameron’s employment of Coulson
It is striking that Sir Paul has taken responsibility and answered questions about the appointment of the Deputy Editor of the News of the World whereas the Prime Minister still refuses to recognise his misjudgement and answer questions on the appointment of the Editor of the News of the World at the time of the initial phone hacking investigation.
People will wonder at why different rules apply for the Prime Minister and the Met, especially when as Sir Paul said himself, unlike Andy Coulson, Neil Wallis had not been forced to resign from the News of the World.
It is also a very serious concern that the Met Commissioner felt unable to tell the Prime Minister and the Home Secretary about this operational issue with Neil Wallis because of the Prime Minister’s relationship with Andy Coulson.
Amazing times. This could go all the way up to the Prime Minister – a close friend of Rebekah Brooks. Even Iain Dale, a famous Conservative Blogger agrees; Could Cameron Be Next
I can’t believe I am even writing this, but it is no longer an impossibility to imagine this scandal bringing down the Prime Minister or even the government. OK, some of you reading this may think that last sentence is a deranged ranting, and you may be right. Indeed, I hope you are. But Sir Paul Stephenson launched a thinly veiled attack on David Cameron in his resignation statement and the Prime Minister is already on the ropes about the propriety of his relationship with Andy Coulson.
They have arrested her on suspicion of both phone hacking (under the Phone Intercept Law) and corruption allegations.
This is key development, and puts James Murdoch next in the frame as per my previous diary – FALL OF THE HOUSE OF MURDOCH VI. Indeed, so dramatic was it that the best go to source for inside information on New International, Murdoch’s biographer Michael Wolff, could only emit the tweet “Jesus” at first. Now he adds this…
In 2008, during a two hour interview I did with Rebekah Brooks, she took seven phone calls from James Murdoch–that’s how often they spoke.
A Guardian Video from just seven days ago shows how close Brooks was to both James and Rupert who (rather than the hacked victims or 200 staff redundancies) said Rebekah was his ‘priority’
After Bloody Friday, and the late but inevitable resignation of Rupert Murdoch’s two closest personal lieutenants – Rebekah Brooks and Les Hinton – News Corp are trying to run damage limitation: apologies in the British Press, denials of hacking 9/11 victims.
But despite the best attempts of their PR firm Edelman, this will not wash, and there’s already enough known and proven in the public domain to turn our attention to the Newscorp Executive who took over from Hinton as head of Newscorps European arm, and who supervised the payout of millions in hush-money to the victims of phone hacking two years ago: a certain man by the name of James Murdoch.
As Michael Wolff – the Vanity Fair writer and biographer who knows the ins-and-outs of the family court – tweets:
Wolff also corrects the rumours yesterday that Elisabeth Murdoch said “Rebekah fucked the company” at a book party last Sunday. No, she didn’t say precisely that. James’ sister said:
“James and Rebekah fucked the Company”
So here’s a little more about the crass libertarian ideology that has driven her brother – and potentially the company – over the cliff.
After Bloody Friday, and the late but inevitable resignation of Rupert Murdoch’s two closest personal lieutenants – Rebekah Brooks and Les Hinton – News Corp are trying to run damage limitation: apologies in the British Press, denials of hacking 9/11 victims.
But despite the best attempts of their PR firm Edelman, this will not wash, and there’s already enough known and proven in the public domain to turn our attention to the Newscorp Executive who took over from Hinton as head of Newscorps European arm, and who supervised the payout of millions in hush-money to the victims of phone hacking two years ago: a certain man by the name of James Murdoch.
As Michael Wolff – the Vanity Fair writer and biographer who knows the ins-and-outs of the family court – tweets:
Wolff also corrects the rumours yesterday that Elisabeth Murdoch said “Rebekah fucked the company” at a book party last Sunday. No, she didn’t say precisely that. James’ sister said:
“James and Rebekah fucked the Company”
So here’s a little more about the crass libertarian ideology that has driven her brother – and potentially the company – over the cliff.
But it’s the US where Newscorp is based, and both Rupert and James are US citizens, and this is where the scandal will finally engulf him I believe. As Carl Bernstein said earlier this week, making the explicit comparison with Watergate these revelation “are the beginning, not the end, of the seismic event.” He also stresses how important this US is to Murdoch
Murdoch associates, present and former-and his biographers-have said that one of his greatest long-term ambitions has been to replicate that political and cultural power in the United States. For a long time his vehicle was the New York Post-not profitable, but useful for increasing his eminence and working a wholesale change not only in American journalism but in the broader culture as well.., Then came the unfair and imbalanced politicized “news” of the Fox News Channel-showing (again) Murdoch’s genius at building an empire on the basis of an ever-descending lowest journalistic denominator…. And finally, in 2007 The Wall Street Journal‘s squabbling family owners succumbed to his acumen, willpower, and money, fulfilling Murdoch’s dream of owning an American newspaper to match the influence and prestige of his U.K. holding, The Times of London-one that really mattered, at the topmost tier of journalism.
Between the Post, Fox News, and the Journal, it’s hard to think of any other individual who has had a greater impact on American political and media culture in the past half century.
If we live in an information economy, then Newscorp is the Standard Oil of the 21st Century. Murdoch built up both horizontal and vertical monopoly power in the UK and Australia, leading to vast inefficiencies, corruption and unaccountable political power.
That was his aim in the US also: so it’s crucial to strike at the pillars of his power while they are beginning to crumble.
Even Rupert himself is showing signs of flagging. He’s just released a rather dispirited, desultory but defiant interview in his own Wall Street Journal in which the main message really seems to be:
I’m tired.
Though many of you have been sceptical that the US public or MSM would pay attention to this, it seems some of the massive public revulsion here in the UK is beginning to transfer to Murdoch’s adopted homeland and commercial base – the United States.
But there’s more to this than just law-breaking: there’s Murdoch’s nefarious role in law-making.
BREAKING,-Murdoch-withdraws-bid-for-BskyB: News International has now entirely withdrawn its bid for 100 percent of Britain’s Biggest Broadcaster – BSkyB. Tenacious investigative journalism, political pressure, and immense people people exercised online and through our elected representatives have seen off this threat – the greatest threat to media plurality and political transparency in my lifetime.
Now keep pushing for Murdoch to be discredited and disarmed in US public life
In a written statement, Mr Rockefeller said he was concerned that hacking by News Corporation journalists may have extended to American targets, including victims of the 11 September attacks.
He did not present any evidence to support that claim, but called on the authorities to look into any possible wrong-doing.
“I encourage the appropriate agencies to investigate to ensure that Americans have not had their privacy violated,” he said.
“The reported hacking by News Corporation newspapers against a range of individuals – including children – is offensive and a serious breach of journalistic ethics. This raises serious questions about whether the company has broken US law.“
Senate Commerce Committee Chairman Jay Rockefeller, who called Tuesday for a formal probe into whether alleged improper behavior extended to US citizens, told reporters that his “bet” was that “we’ll find some criminal stuff.”
Asked whether he was saying he thought there would be evidence of criminal acts in the United States and whether he was referring to possible phone hacking, Rockefeller replied “yeah” each time.
Gordon Brown in the House of Commons has just called News International “a criminal-media nexus“.
My FINAL UPDATE for US readers. In case this seems like a parochial issue, you ought to know that the Chief Executive of News International at the time when all these scandals took place was Les Hinton (pictured below), who is now is the publisher of the Wall Street Journal for Murdoch. Follow his scandalous coverup in Media Matters. Also Andy Coulson, former editor of News of the World and Prime Minister David Cameron’s former Head of Communications will be arrested tomorrow.
AMAZING NEWSFLASH! The News of the World (commonly known as ‘News of the Screws’ because of its salacious coverage) is to be axed for good. Though it was the biggest selling English language paper in the world, many major companies including Tesco had refused to advertise in it and the brand was damaged for good. This of course is a blow for the Murdoch Empire, but a tactical retreat. The pressure isn’t off. But it’s killed his main Sunday Paper in the UK
It’s just been announced that because of over 100,000 submissions against Rupert Murdoch’s acquisition of the satellite channel BSkyB, government approval by our Culture Secretary Jeremy Hunt – largely expected this week – will have to be deferred several months. The Government are still arguing that revelations of illegal activity among senior News executives should not affect the principle of the takeover – but everything is to play for.
(Left to right, Les Hinton, Andy Coulson, Rupert Murdoch and Rebekah Brooks together in 2005)
This could be a crucial moment for press freedom and media plurality in the UK. Murdoch’s takeover the largest broadcaster (by revenue) in the UK, would have given him a unique cross platform monopoly. Thanks to series of favours by cowed and appeasing politicians (especially Margaret Thatcher) Murdoch’s News International has been allowed to accumulate nearly 40 percent of the newspaper market. He also has key sports and film rights in the UK. A combination of BSkyB and News International would have made him much more powerful in the UK than Berlusconi is in Italy – and at least Berlusconi is an Italian citizen.
The tyrants lose their swagger and those that lived in fear dare to speak out. The dynamics of the News International saga are similar to the ones that shape the fall of dictatorial regimes, except in this case it is some mighty media executives who are suddenly fearful and the politicians who are liberated.
Yesterday’s exchanges in the Commons were ones I thought I would never witness. They are of historic importance. Senior elected politicians dared to challenge the powerful Murdoch empire and there was an air of catharsis as they did so.
For more on Murdoch’s corrosive and corrupting effect on British journalism, and and his coarsening of public life and politics in the UK, follow me below the flip.
But it’s the US where Newscorp is based, and both Rupert and James are US citizens, and this is where the scandal will finally engulf him I believe. As Carl Bernstein said earlier this week, making the explicit comparison with Watergate these revelation 