News Corp executive James Murdoch was under pressure yesterday over his handling of a phone-hacking scandal that has hit the Murdoch family’s media empire and could jeopardize his own position at the company.
British police are considering a request from British opposition Labour MP Tom Watson to investigate claims the 38-year-old son of News Corp head Rupert Murdoch gave “mistaken” testimony to a high profile hearing in British Parliament last week.
Separately, Labour MP Chris Bryant has written to News Corp’s independent directors calling on them to suspend both James and his 80-year-old father for failing to exercise proper corporate control.
Later this week James Murdoch is expected to retain the support of investors and independent directors of BSkyB when the company, which he chairs and in which News Corp holds a 39 percent stake, announces its financial results.
James and his father appeared before the Parliament’s media committee last Tuesday to answer questions on phone-hacking. The scandal aroused public fury earlier this month after revelations the cellphone of missing school girl Milly Dowler had been hacked in 2002. The body of the murdered 13-year-old was found several months after she disappeared.
News Corp’s British arm News International had maintained until then that previously known about incidents of the illegal practice at its News of the World tabloid was the work of a lone “rogue reporter.”
However, two former senior figures at its British newspaper arm on Friday disputed James Murdoch’s claim at the committee hearing that he had been unaware in 2008 of an e-mail that suggested such wrongdoing was more widespread.
The e-mail related to a £700,000 (US$1.1 million) out-of-court settlement paid to the head of English soccer’s players union and signed off by James Murdoch in 2008, shortly after he took charge of News Corp’s European operations.
In a letter to the media committee’s chairman James Murdoch said he had answered questions in Parliament truthfully.
“James Murdoch is in a precarious position,” media analyst Steve Hewlett said.
“If it emerges that he knew the details of what he was signing, then he’s in trouble,” Hewlett said. “But if he knew absolutely nothing about why he was signing away so much money, then another question arises, as to whether he is competent to run the business and whether he is a worthy successor to his father.”
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