James Murdoch Under Threat as UK Scandal Spreads

Media scion James Murdoch, his father's heir apparent, was under fire Friday over claims by former newspaper executives that he misled lawmakers about what he knew, and when, about Britain's phone-hacking scandal.

The allegation raises questions not only about his succession to the helm of the media empire but what he may have relayed to Rupert Murdoch, the CEO and controlling shareholder.

The younger Murdoch told a parliamentary committee that he was not aware of evidence that eavesdropping at the News of the World went beyond a jailed rogue reporter. But in a sign that executives are starting to turn against the company, two former top staffers said late Thursday they told him years ago about an email that suggested wrongdoing at the paper was more widespread than the company let on.

The claim brings more trouble for the embattled James Murdoch, who heads the Europe and Asia operations of his father's News Corp., as his family fights a scandal that has already cost it one of its British tabloids, two top executives and a $12 billion bid for control of a lucrative satellite broadcaster.

Deliberately misleading Parliament is a crime in Britain, and Prime Minister David Cameron has joined opposition lawmakers in saying James Murdoch has questions to answer.




Tom Watson, a legislator from the opposition Labour Party, called for Scotland Yard to investigate the allegation and said it "marks a major step forward in getting to the facts of this case."

"If their version of events is accurate, it doesn't just mean that Parliament has been misled, it means police have another investigation on their hands," Watson told the BBC.

James Murdoch, who was not testifying under oath at Tuesday's parliamentary hearing, could face sanction if it becomes clear he deliberately misled lawmakers — but the prospect is highly unlikely. The last time the House of Commons fined anyone was in 1666.

The House of Commons no longer has the power to imprison a nonmember, but it could refer a case to the Metropolitan Police.

News International, News Corp.'s British newspaper division, said James Murdoch stood by his testimony to parliament.

The scandal exploded earlier this month with revelations journalists at the News of the World tabloid hacked the phone of a 13-year-old murder victim while police were still searching for her and broadened to include claims reporters paid police for information.

That set off a firestorm that has hit at the highest reaches of British society. It forced Rupert Murdoch to shutter News of the World, prompting a spate of high-profile resignations and departures at News Corp. and delivering the 80-year-old media baron and his son to be grilled before lawmakers.

The scandal continued its seemingly inexorable spread Friday, with Scottish police saying they were opening their own perjury and corruption investigations related to the phone hacking — one that has the potential to further taint ex-News of the World editor Andy Coulson, who served as Cameron's top media aide.

Cameron, who's under pressure over his decision to hire Coulson, continued to distance himself from a once-cozy relationship with the Murdochs.

"Clearly James Murdoch has got questions to answer in Parliament and I am sure that he will do that," Cameron said Friday, adding the Murdochs had "a mess to clear up."

 

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