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UPDATE 2-Murdoch blames rogue tabloid for phone-hacking

Thu, 26th Apr 2012 15:13


By Kate Holton and Georgina Prodhan

LONDON, April 26 (Reuters) - Rupert Murdoch called h
is News

of the World tabloid an 'aberration', blaming journalists for

hiding a phone-hacking culture from himself, his son James and

his protegee Rebekah Brooks, and saying he wished he had shut it

down sooner.

Rejecting personal responsibility for a culture that allowed

illegality to flourish, Murdoch painted a picture of a rogue

culture at the Sunday tabloid, in an echo of his company's now

abandoned defence that a single 'rogue reporter' was to blame.

'The News of the World, to be quite honest, was an

aberration, and it's my fault,' the world's most powerful media

mogul said in a second day of testimony in Britain's High Court

on Thursday. 'I'm sorry I didn't close it years before.'

Showing frequent flashes of annoyance as the questioning

became more pointed, the 81-year-old admitted he had not paid

enough attention to the News of the World but did not accept

that he had allowed a culture of illegality to flourish.

'I think in newspapers, the reporters do act very much on

their own, they do protect their sources, they don't disclose to

their colleagues what they are doing,' Murdoch told a judicial

inquiry into press ethics.

Asked where the culture of cover-up had originated, Murdoch

answered: 'I think from within the News of the World. There were

one or two very strong characters there who I think had been

there many, many years and were friends of the journalists.'

'The person I'm thinking of was a friend of the journalists

and a drinking pal and clever lawyer and forbade them ... to

report to Mrs. Brooks or to James,' said Murdoch, in a thinly

veiled reference to the News of the World's former top lawyer

Tom Crone, who has accused James Murdoch of lying.

'Someone took charge of a cover-up, which we were victim to

and I regret,' he said.

The inquiry's top counsel, Robert Jay, picked up on Murdoch

admission of a cover-up, causing consternation among Murdoch's

legal team in the courtroom, and forcing Judge Brian Leveson to

ask one of the party to sit down before resuming proceedings.

The appearance at the inquiry of a man who has courted prime

ministers and presidents for the last 40 years was a defining

moment in a scandal that has laid bare collusion between British

politicians, police and Murdoch's News Corp.



PANIC

The tone of Thursday's hearing became increasingly hostile

after the fairly civil exchanges on Wednesday, as Jay ratcheted

up the pressure and described the culture of phone-hacking as a

'cancer'.

When Jay suggested that the response of News International,

the British newspaper arm of News Corp, was a 'desire to cover

up, not expose,' Murdoch snapped back: 'Well, to people with

minds like yours,' before quickly adding 'I take that back.'

Jay, keeping his cool, assured him: 'I'm very thick-skinned

Mr. Murdoch. Do not worry one moment.'

Murdoch described how the corporate mood had changed after

last July's revelation that the News of the World had hacked

into the voicemail of missing schoolgirl Milly Dowler, who was

later found murdered - a turning point in the scandal.

'You could feel the blast coming in the window,' he said,

explaining why he had decided to close down the 168-year-old

News of the World, for decades Britain's best-selling Sunday

tabloid. 'I panicked. But I'm glad I did.'

The move was seen by angry News of the World journalists as

a bid to save Brooks, the editor of the tabloid at the time when

much of the phone-hacking occurred, whom Murdoch had promoted to

run the whole of News International.

Brooks, known for her distinctive mane of red hair and

skilful manipulation of relationships with top politicians,

resigned a week later and has since been arrested twice on

suspicion of charges related to hacking and bribery.

The scandal also put an end to News Corp's long-cherished

ambition to buy the 61 percent of satellite broadcaster BSkyB it did not already own, a $12 billion deal that would

have been the company's biggest-ever acquisition.

The company had assiduously cultivated Culture Secretary

Jeremy Hunt, who had been trying to steer through the takeover,

which was controversial because it would have increased

Murdoch's already considerable media ownership in Britain.

On Tuesday, the inquiry was told of hundreds of emails

exchanged between News Corp's top London lobbyist and James

Murdoch, which boasted of the company's access to Hunt's office

and privileged access to sensitive information.

Hunt's aide, Adam Smith, resigned the next day, and

opposition politicians are calling for Hunt to quit, in an

indication of the consequences the inquiry may have in its new

phase of examining relations between the press and politicians.

Rupert Murdoch said he had not got involved in the politics

of the BSkyB bid and could not recall being given updates by his

son James, who was at the time chairman of News International

and of BSkyB.

'I don't remember any conversation, to be honest with you,

but I'm assuming that he kept me up to date to some extent. I

delegated the situation to him, I left it to him,' he said.



DIPSTICKS

Prime Minister David Cameron appointed Leveson last year to

examine Britain's press standards after News of the World

journalists admitted hacking into phones on a massive scale to

generate scoops and salacious front page stories.

The admission last year, and the revelation that journalists

had hacked into the phones of ordinary people and crime victims,

prompted questions of whether the police declined to properly

investigate the scandal because of Murdoch's influence.

While most British newspapers splashed Murdoch's appearance

at the inquiry on their front page, his own Sun newspaper

reserved the news for page 10 on Thursday.

The Sun also printed an excoriating editorial about the

government under the headline 'Dipsticks', a play on the fact

that new data had just shown that Britain's economy may have

fallen into a double-dip recession.

'The Tory leadership are adrift,' the Sun said. 'They muddle

on, hoping something might turn up.'

'And indeed it might. If there were an election tomorrow,

who could say (Labour Party leader) Ed Miliband might not win

it?'

The rival, left-leaning Daily Mirror tabloid pictured

Murdoch with former prime ministers Margaret Thatcher and Tony

Blair and with Cameron in his pocket, under a headline 'Empire

of the Sun'.



(Editing by Paul Simao)



Keywords: HACKING MURDOCH/

(For highlights of Murdoch's remarks, please double click on)

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