News Corp; Murdochs Stay for Now
Is News Corp about to become the Murdochs’ News Corpse?
The Murdochs are still in control of News Corp for now, but British Parliament member warns of new investigations into corruption.
A British Member of Parliament Tom Watson visited the contentious Rupert Murdoch and other News Corp shareholders in a meeting yesterday. A seemingly irate Watson baldly informed Murdoch that the phone hacking scandal is far from over. In fact, even more illegal actions may surface as British Police investigate more leads on allegations about the media conglomerate.
At the meeting, Watson told Murdoch that the 200 police officers are investigating claims that range from conspiring to pervert the course of justice, executives committing perjury, and bribery of public officials, including police officers. Watson also alleged that cases of computer hacking may soon surface.
Although the Murdoch-dominated board, which owns 40% of the News Corp stocks, was re-elected by the Murdoch-controlled shareholders, The Guardian noted, the fact that major investors voted against his re-election and that of his sons and other directors is a major blow for the 80-year-old chairman and chief executive.
Watson did mince words or use niceties to question the Murdoch cabal:
WATSON: …as you pointedly said, you are cooperating with the phone-hacking scandal in the U.K. that has got 200—police officers on the case as we speak, but they’re also looking at other allegations, that range from conspiring to pervert the course of justice, executives committing perjury, and bribery of public officials, including police officers.
NEWS CORP. REPRESENTATIVE: Excuse me, if we could please conclude our remarks.
WATSON: —targeting the former queen, and illegally—
NEWS CORP. REPRESENTATIVE: If this—if this is not a matter related to—
WATSON: This is a matter—a matter of corporate governance, if I may say to you sir, I did give Mr. Murdoch two and a half hours to answer my committee, I hope that you—
…
WATSON: You’ve not told your shareholders that in the U.K., the serious organized crime agency holds the hard drives of a number of these private investigators, and News Corp is potentially facing [charges of] computer hacking as the victims… begin to take civil litigation cases for illegal invasions of privacy.
You haven’t told any of your investors about what is to come, and I have to say Mr. Murdoch, that if I know about this, then with all of the resources you’re putting into clearing up the scandal, you must know about this too.
There isn’t the corporate governance structures that will prevent these kind of scandals happening again, and I would hope that you could, at least respond to some of the independent investors and reassure your readers and customers in the U.K. and beyond that you’re going to put this matter right.
MURDOCH: [Banging his hand or fist on the table several times] I think I have assured them and I am going to put these things right. What happened a few years ago was absolutely wrong, and I have said so, and I’ve said we’re all ashamed of it.
Murdoch certainly seems to be trying to put things right—for News Corp—by allegedly starting to settle (or pay off) some of the phone tapping victims.
According to the Associated Press, Murdoch’s News International paid $3.2 million to the family of the murdered schoolgirl, Milly Dowler, who perished in the 9/11 bombing of the New York World Trade Center. Her phone was hacked by a British tabloid according to the Associated Press.
News International, the British arm of Murdoch’s international media empire, and the family confirmed the settlement Friday. In addition to the settlement, Murdoch must also donate the equivalent of $1.6 million to charities chosen by the family.
Reports from earlier this year indicate News of the World journalists hacked into the 13-year-old Dowler’s phone mail, which triggered outrage among the British public. The hacking occurred after young woman disappeared, but before her body was found.
After News of the World hackers even deleted messages on her voice mail to free up space for more calls, leading police and her family to believe that she might still be alive.
As yet, no one knows how many potential victims of News Corp’s illegal phone hacking are out there. It’s unclear how Murdoch intends to put these things right.
Mad Mike’s America thanks AP, Media Matters and News Hounds (We watch FOX so you don’t have to), and TV News Lies.
Will the Murdochs’ legal troubles in England affect any of their media outlets in the United States?