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Inquiry Leader Says Murdoch Papers Paid Off British Officials

 
 
Reply Mon 27 Feb, 2012 01:05 pm
Inquiry Leader Says Murdoch Papers Paid Off British Officials
By SARAH LYALL
Published: February 27, 2012
New York Times

LONDON — The officer leading a police investigation into Rupert Murdoch’s British newspapers said on Monday that reporters and editors at The Sun tabloid had over the years paid hundreds of thousands of dollars for information not only to police officers but also to a “network of corrupted officials” in the military and the government.

The officer, Deputy Assistant Commissioner Sue Akers, said that e-mail records obtained by the police showed that there was a “culture at The Sun of illegal payments” that were authorized “at a very senior level within the newspaper” and involved “frequent and sometimes significant sums of money” paid to public officials in the Health Ministry and the prison service, among other agencies.

The testimony was a sharp new turn in a months-long judicial investigation of the behavior of Murdoch-owned and other newspapers, known as the Leveson inquiry. It detailed financial transactions that showed both the scale and the scope of alleged bribes, the covert nature of their payment and the seniority of newspaper executives accused of involvement.

The testimony may prove damaging to the News Corporation, the American-based parent of Mr. Murdoch’s media empire, if it gives ammunition to the F.B.I. and other agencies that are investigating the company for possible prosecution under the Foreign Corrupt Practices Act.

Until now, the Leveson inquiry delved primarily into questions of unlawful accessing of private voice mail and e-mail by tabloid journalists. That scandal that forced the company to shut down The News of the World, Mr. Murdoch’s flagship Sunday tabloid, in July 2011; it was replaced last weekend by a new Sunday version of The Sun, which published its first issue hours before the latest hearings of the Leveson inquiry. In a statement, Mr. Murdoch, the head of News Corporation whose British subsidiary owns The Sun and other major newspapers here, did not specifically deny the allegations made by Ms. Akers. Rather, it focused on the company’s response: “As I’ve made very clear, we have vowed to do everything we can to get to the bottom of prior wrongdoings in order to set us on the right path for the future. That process is well underway. The practices Sue Akers described at the Leveson inquiry are ones of the past, and no longer exist at The Sun. We have already emerged a stronger company.”

In recent weeks, a number of senior journalists from The Sun have been arrested on suspicion of making illegal payments to officials, and Ms. Akers said that the activities had been carried out by “the arrested journalists.”

Ms. Akers said that the payments from The Sun went far beyond the occasional lunch or dinner, with one public official receiving more than $125,000 over several years, and a single journalist being allocated more than $238,000 in cash to pay sources, including government officials.

It was clear from references in the e-mail messages — to staff members’ “risking losing their pension or job” and to the need for “tradecraft” like keeping the payments secret or making payments to friends or relatives of the officials — that the journalists in question knew that the payments were illegal, Ms. Akers said.

“Systems have been created to facilitate such payments whilst hiding the identity of the officials receiving the money,” she said. “The e-mails indicate that payments to ‘sources’ were openly referred to within The Sun, with the category of public official being identified, rather than the individual’s identity.”

She added: “Some of the initial e-mails reveal, upon further detailed investigation, multiple payments to individuals of thousands of pounds. There is also mention in some e-mails of public officials being placed on ‘retainers,’ and this is a line of inquiry currently being investigated.”

None of the journalists have been formally charged. At first, they were suspended by The Sun pending the investigation. But in a bold move this month, Mr. Murdoch swept in to London, reinstated all of the suspended Sun employees and said that News International, the British newspaper branch of his company, News Corporation, would pay all of their legal bills.

He also announced the plans to publish the new Sunday newspaper to replace The News of the World, which was closed in July when it became clear that it had routinely and illegally hacked into the voicemail messages of celebrities, sports stars, politicians and crime victims as a way to obtain stories.

After the first edition of The Sun on Sunday, Mr. Murdoch declared in a message on Twitter that it had sold about 3 million copies.

The damaging revelations on Monday were not limited to The Sun, but extended to The News of the World.

According to a lawyer for the Leveson Inquiry, Rebekah Brooks, the former chief executive of News International, was told explicitly by the police in 2006 that at least 100 people, including politicians and sports stars, had had their phones hacked by a private investigator working for The News of the World.

Details of Ms. Brooks’s conversation with the police were revealed in an e-mail sent on Sept. 11, 2006, from a News International lawyer to the editor of The News of the World, Andy Coulson, the lawyer told the inquiry. According to the e-mail, Ms. Brooks was informed that police had evidence that the investigator, Glenn Mulcaire, appeared to have been paid more than $1.5 million by News International for his hacking work over a period of years.

The revelation is hugely significant because it speaks to one of the crucial questions in the hacking inquiry that has swept through Mr. Murdoch’s British tabloids: who knew what, and when. Until 2010, Ms. Brooks, Mr. Coulson, Tom Crone and a bevy of other News International officials repeatedly declared that phone hacking at The News of the World was limited to a single “rogue reporter” — the royal correspondent, Clive Goodman, who was jailed along with Mr. Mulcaire in 2007.

According to the e-mail, though, Ms. Brooks was told that the list of victims of Mr. Mulcaire’s hacking work included politicians, sports stars and celebrities — people Mr. Goodman would have had no reason to write about. And it said she was told that while police investigators had no direct recordings of News of the World employees hacking victim’s voicemails, they did have phone records showing that Mr. Mulcaire had had frequent “sequences of contacts” with The News of the World before and after accesses.

Speaking of the continuing police investigations, Ms. Akers said: “We are nearer the start than the finish on this inquiry and there remain a number of persons of interest. These include journalists and public officials.”

In connection with a separate inquiry into phone hacking by British journalists, the Welsh singer Charlotte Church announced on Monday that she had agreed to settle her lawsuit against News International, the British newspaper subsidiary of News Corporation, for a payment of about $950,000 — much more than the company paid in earlier settlements with targets of phone hacking. The case may be a sign that the litigation over phone hacking will cost the company more than some analysts have assumed.

Alan Cowell contributed reporting.
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Reply Mon 27 Feb, 2012 01:23 pm
Somebody's been watching too much MI-5
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BumbleBeeBoogie
 
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Reply Thu 22 Mar, 2012 10:44 am
@BumbleBeeBoogie,
As 'Murdoch's Scandal' Unravels, Many Implicated
March 22, 2012
NPR

Allegations of phone hacking and bribery brought down Rupert Murdoch's tabloid News of the World. Criminal and parliamentary investigations are now under way in the U.K., and dozens of journalists and top executives from Murdoch's paper have been arrested.

Scotland Yard has been investigating the scandal, but several police officials from that iconic institution have also been implicated; they're accused of accepting bribes from reporters at Murdoch's papers.

Lowell Bergman is a producer and correspondent for the PBS documentary series Frontline. He is also a professor at the Berkeley Graduate School of Journalism.

"A number of them went to work for Murdoch's paper afterward — these are higher-level officials — and we don't know what other things went on," says PBS Frontline correspondent Lowell Bergman. "We have plenty of rumors, lots of stories — but for sure, the police themselves have stood up and said that at The Sun, one of Murdoch's papers, there was a 'culture of corruption.'"

Murdoch's Scandal, Bergman's Frontline documentary, which airs March 27 on PBS stations, details how the story broke. It also profiles the people who uncovered information about the scandal — and the price they paid for trying to bring it to light.

Mark Lewis is the lawyer for more than 80 alleged phone-hacking victims. Labour MPs Tom Watson and Chris Bryant questioned Murdoch and Rebekah Brooks, an executive and former newspaper editor at Murdoch's News International umbrella corporation, during parliamentary hearings. And Nick Davies is the reporter for The Guardian, the paper that originally broke the phone-hacking story. Some of them were put under surveillance by private investigators hired by News International. Others were intimidated, says Bergman, through a process called "monstering," in which Murdoch's papers singled out individuals and attacked their character on a daily basis.

News Corp. Chairman Rupert Murdoch, at center on July 15, after News International chief executive Rebekah Brooks announced her resignation. Speaking before British lawmakers yesterday, Murdoch said "This is the most humble day of my life."

The 168-year-old British tabloid News of the World shut down last July after a widespread scandal that involved phone and voice mail hacking. Now there's a debate about placing new regulations on the British press.
Media

In Britain, Calls To Regulate A Freewheeling Press

"[Chris Bryant] tells the story that at some time [after questioning Brooks in Parliament in 2003] he runs into her at a party, and she starts to say unkind things to him, that she knows that he's gay," says Bergman. "Then soon after, he gets 'monstered' by the tabloids, where they single out an individual and go after him day after day.

"They began to show pictures of him in his underwear — any pictures they could find of him being somewhat compromising — talking about him being a member of Parliament, being gay, etc. And leaning on him, and, he thought for a while, endangering his political career."

Bryant was reelected and is still pursuing the investigation, says Bergman.

"I think the most important part of all of this was that there was no police investigation after a public admission [by Brooks in 2003] that '[The paper] pays the police.' We know from News Corporation, and its answers to various questions back in New York, they did not launch any investigation to find out what was going on inside. And when we asked a veteran editor about it — about whether or not he knew that his paper paid the police — he said no one ever told him."

Public statements given by Scotland Yard indicate that people inside the metropolitan police were being paid off, some of them in excess of six figures, says Bergman.

"They said there was a culture of corruption inside the paper," he says.

A former reporter for one of Murdoch's tabloids told Bergman that journalists at The Sun and News of the World were pressured to file big stories multiple times a year, leading to a culture where rules were broken.

"But it's our understanding, both from the public record and testimony that's taken place in a public inquiry, that bribery by the Murdoch tabloids was endemic for decades," says Bergman. "This was not a practice that emerged in the early 1990s, especially as it relates to the police."

Bergman says he's not shocked that people were paying off the police — or that the police were accepting bribes from journalists.

"What shocked me was how this was all a very small group of people who were all playing in the same game in London, and the scale of it — the intimacy of it, how close they were — and the fact that Parliament didn't have the power or will to get to the bottom of it," he says. "And that it was, in the end, a Manchester lawyer, a reporter for The Guardian, and a few members of Parliament that allowed this to come out."

Interview Highlights

On News of the World's use of private investigators, who then bribed people who knew how to hack into voicemails

"It was pretty widespread practice in various news organizations, not only to pay for information, but to use private investigators. On the surface, using private investigators is done. It's done in this country as well. But you stay within certain rules. You keep people, if you will, on a narrow focus about what they can do and what they can't do when you hire people on the outside. But in Britain apparently and in the heat of the tabloid industry there, many people say fueled by Murdoch, ... this became standard practice."

On what happened to Mark Lewis, the lawyer who represented more than 80 phone-hacking victims, after he approached News International about possible phone hacking

"He and a woman who he was going out with and worked with were put under surveillance, as was his ex-wife and child by a private investigator hired by News International. It isn't that they just go out and hire private investigators. We now know that some of these private investigators worked in the newsroom. Or were told, 'Become journalists. Join the journalism union.' They were integrating these investigators into their newsroom operations. These surveillances were ordered. In fact, James Murdoch has now publicly apologized to Mr. Lewis and Tom Watson, a member of Parliament, for putting them under surveillance."

On the silence of News Corporation and Rupert Murdoch

"I was working at The New York Times during the Jayson Blair episode. At The New York Times, the paper officially went on an obsession of telling the audience everything it knew about what had gone on inside The New York Times, to get honest with its readers and with its audience. This is the News Corporation, that's its title. It does own some real legitimate news organizations, like The Wall Street Journal. It owns a television news operation on cable that seems unfettered in what it is willing to talk about — over the top, sometimes. I think it is even proud of that. And it owns reputable newspapers in Britain, as well as these tabloids — and no one will talk? Across the board, silence. I even went to the extent of writing letters — personal letters — to two dozen people inside the organization after trying to talk to people on the phone, and the only response was a letter from Rupert Murdoch himself. It was a very short note, saying he was unable to talk about this at this time. Everyone else has been silent except for The Wall Street Journal's editorial page, and I've tried them as well. They've written editorials about it, complaining about some of the coverage."
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