Newspaper Execs Contradict James Murdoch's Denials in Hacking Scandal
As British parliamentary hearings on the Murdoch empire's phone hacking scandal resumed Tuesday, James Murdoch's credibility came under more doubt.
The Commons committee on culture, media and sport, which had summoned Rupert and James Murdoch to a hearing in July, hinted James Murdoch could be called back again next month for additional questioning after two former News of the World executives firmly said Tuesday they were certain that they informed him of a strong e-mail message that hinted phone hacking at the paper went beyond one "rogue" reporter. This does not fit with the paper's previous defence that the phone hacking was isolated to its royal editor, Clive Goodman.
The two executives - Tom Crone, former legal manager for the Murdoch-owned newspapers in Britain, and Colin Myler, former editor of the now-defunct News of the World - said at a parliamentary hearing that they had told James Murdoch in 2008 that the hacking of voice mail as aid in reporting went beyond the work by a lone rogue reporter.
James Murdoch is chief of News Corp's European and Asian operations.
Crone and Myler said they informed James Murdoch to get his nod for a record $1.4 million settlement that seemed to buy a hacking victim's silence.
Crone and Myler argued the settlement had been intended to save millions in legal costs, but a number of Parliament members suggested that it was meant to buy the hacking victim's silence and prevent the scandal from spreading.
News International claimed hacking was limited to Goodman, the News of the World's former royal reporter imprisoned for illegal voicemail interception in 2007 along with private investigator Glenn Mulcaire.
When the Guardian reported in July 2009 the existence of the "for Neville" mail, it seemed likely that the NoW's chief reporter, Neville Thurlbeck, was also involved in hacking, and there was wider knowledge of hacking within the newsroom.
James Murdoch responded to Crone's claims in a statement, emphasizing that he stands behind his statements in the first hearing in July.
"I was told by Mr. Crone and Mr. Myler ... that there was evidence that Mulcaire had carried out [the interception of Mr Taylor's voicemails] on behalf of the News of the World. It was for this reason alone that Mr. Crone and Mr. Myler recommended settlement ... They did not show me the email, nor did they refer to Neville Thurlbeck [the NoW reporter to which the email allegedly referred] ," he added. "Neither Mr. Myler nor Mr. Crone told me that wrongdoing extended beyond Mr. Goodman or Mr. Mulcaire."
Committee members have said that they will focus on determining once and for all whether James testified truthfully in July when he said that there was no indication at the 2008 meeting of a pattern of privacy violation at The News of the World.
James has been fighting for his corporate survival amid restlessness among powerful News Corporation investors. It all hangs on what the parliamentary and police inquiries reveal in the months ahead.