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MURDOCH ROASTED AS UNFIT TO RUN A GLOBAL COMPANY SAYS REPORT

1 Introduction
1. This Report examines whether or not there is good evidence to suggest that the
Committee and its predecessor Committees have been misled by any witnesses during the
course of their work on the phone-hacking scandal, which continues to reverberate around
News International and to have major repercussions for the British newspaper industry as
a whole.
Background: the Committee’s work on phone-hacking
2. In the last decade, the Committee’s predecessors have conducted three separate inquiries
into press standards, taking a special interest in privacy. In the last Parliament, as part of
the most recent of the three Reports—Press standards, privacy and libel—the Committee
looked into allegations of widespread phone-hacking at the News of the World.1 It was not
convinced by assurances given to it that phone-hacking had been the work of a single
‘rogue reporter’ and was frustrated by what it described as the “collective amnesia” that
seemed to afflict witnesses from News International.2 It also criticised the Metropolitan
Police for failing to pursue its own investigation into phone-hacking.3 The Committee
made it clear that it regarded some of the contentions made by witnesses as straining
credulity but, faced with a repeated insistence that wrongdoing was not widespread, and
the unwillingness of police and prosecutors to investigate further, it was not possible to
conclude definitively that we had knowingly been given evidence which was deliberately
misleading or false, either by individuals or by News International itself.
3. A series of events in 2011 changed the situation:
• On 5 January 2011, the News of the World suspended its Assistant Editor Ian
Edmondson over alleged involvement in phone-hacking.
• On 15 January 2011, following continued civil cases by phone-hacking victims, the
Crown Prosecution Service announced a review of the evidence collected in the
Metropolitan Police’s original investigation of phone-hacking at the News of the World.
The announcement was made after News International had tasked Group General
Manager Will Lewis with re-examining all the documents held by Harbottle & Lewis, a
firm of solicitors that—in 2007—had conducted an independent review of those papers
in the context of an unfair dismissal claim being brought by Clive Goodman, the News
of the World’s former Royal Editor, against the company. Mr Lewis had passed the
material to a different firm of solicitors, Hickman Rose, who in turn had referred the
material to Lord Macdonald of River Glaven, a former Director of Public Prosecutions,
for an opinion. On the basis of his opinion, it was decided to refer the matter
immediately to the police.
1 Culture, Media and Sport Select Committee, Second Report of Session 2009-10, Press standards, privacy and libel, HC
362 (hereafter referred to as Press standards, privacy and libel)
2 Press standards, privacy and libel, paras 441 and 442
3 Press standards, privacy and libel, para 467
4 News International and Phone-hacking
• On 26 January 2011, the Metropolitan Police announced that it was re-opening its
investigation into phone-hacking. The new investigation, Operation Weeting, is being
led by Deputy Assistant Commissioner Sue Akers, who replaced Acting Deputy
Commissioner John Yates, one of the Metropolitan Police witnesses who appeared
before the Committee in 2009. It is conducting a fresh examination of all evidence,
including that held by the police since the prosecution of the newspaper’s former Royal
Editor, Clive Goodman, and the private investigator, Glenn Mulcaire, and is
contacting, with distinctly more vigour and purpose, victims of the newspaper’s phonehacking
activities. Since then, two further, parallel investigations have been launched,
also headed by DAC Akers: Operation Elveden into alleged payments to police officers;
and Operation Tuleta into other activities beyond phone-hacking, including e-mail and
computer hacking.
• On 10 March 2011, Chris Bryant MP held an adjournment debate on the floor of the
House of Commons, during the course of which he accused Acting Deputy
Commissioner John Yates of having misled both the Culture, Media and Sport and
Home Affairs Select Committees when giving evidence on phone-hacking. Mr Yates
had asserted that, under the Regulation of Investigatory Powers Act 2000 (RIPA), it was
only possible to prosecute illegal voicemail intercepts if it could be proved that the
hacker had accessed the voicemail before the intended recipient had listened to it.4
Written evidence to the Home Affairs Committee from the Director of Public
Prosecutions stated, however, that “the prosecution [in the cases of Clive Goodman
and Glenn Mulcaire] did not in its charges or presentation of the facts attach any legal
significance to the distinction between messages which had been listened to and
messages that had not”.5 In fact, because both Clive Goodman and Glenn Mulcaire had
pleaded guilty, this issue was never tested.6 On 14 March 2011, Acting Deputy
Commissioner John Yates wrote to the Committee offering to give evidence in
response to the comments made by Mr Bryant in his debate four days earlier and did so
on 24 March.
• On 5 April 2011, Ian Edmondson and Neville Thurlbeck, the News of the World’s Chief
Reporter, were arrested on suspicion of unlawfully intercepting voicemail messages, the
first arrests in the course of the new police investigations.7
• On 7 July 2011, James Murdoch, Deputy Chief Operating Officer and Chairman and
Chief Executive Officer (International), News Corporation, made a public statement
announcing the closure of the News of the World, in which he stated that wrongdoing
was not confined to one reporter and that both the newspaper and News International
had failed to get to the bottom of this affair. He also said that “the paper made
4 AC John Yates oral evidence to Home Affairs Committee, Sept 7 2010, Q5, published as Specialist Operations, HC
441-i, of session 2010-12
5 Memorandum submitted by Keir Starmer QC, Director of Public Prosecutions to the Home Affairs Committee,
October 2010, published in Home Affairs Committee, Unauthorised tapping into or hacking of mobile
communications, Thirteenth Report of Session 2010-12, HC 907, Ev 126
6 Standards & Privileges Committee, Privilege: Hacking of Members’ Mobile Phones, Fourteenth Report of Session
2010-12, HC 628, Appendix
7 “Phone hacking: NoW journalist arrested” The Guardian online, 5 April 2011
News International and Phone-hacking 5
statements to Parliament without being in the full possession of the facts. This was
wrong”.8
4. Taken together, all these events made it inevitable, and imperative, that the Committee
would wish to re-open its inquiries into the phone-hacking affair, and its fall-out, and
investigate in particular the extent to which we, and previous Committees, had been
misled. We re-opened our inquiry. Given James Murdoch’s public assertion that the News
of the World had “made statements to Parliament without being in the full possession of
the facts”, we decided to invite James Murdoch to give oral evidence on 19 July 2011 so that
he could expand on this admission. We invited Rebekah Brooks, then Chief Executive
Officer of News International, and Rupert Murdoch, Chairman and Chief Executive
Officer of News Corporation, to give evidence alongside him. Rebekah Brooks responded
that she would be able to give oral evidence at the time requested. Rupert Murdoch
declined to attend and James Murdoch said that he would be willing to attend on an
unspecified future date. Finding this to be unsatisfactory, we issued an Order summoning
Rupert and James Murdoch to attend the Committee on 19 July 2011, which they did.
5. During the evidence session on 19 July 2011, Rupert Murdoch was subjected to an
assault by a member of the public. The Chairman expressed his grave concern that such a
serious incident was able to take place within the precincts of Parliament and apologised to
Rupert Murdoch on behalf of the Committee. Similarly, the Speaker of the House of
Commons stated that “it is wholly unacceptable for a member of the public to treat, and to
be able to treat, a witness in this way”. He commissioned an independent review into the
security breach and steps have been taken to ensure that no such thing can happen again.9
We thank Rupert Murdoch for his willingness to continue to give evidence to us in those
circumstances.
6. Given the testimony of the Murdochs, what we had heard from other witnesses
previously and a dispute between two previous witnesses—Tom Crone and Colin Myler—
and James Murdoch,10 we held a series of further evidence sessions. On 6 September, we
heard from various former News International employees: Jonathan Chapman, former
Director of Legal Affairs; Daniel Cloke, former Group Human Resources Director; Tom
Crone, former Legal Manager for News Group Newspapers; and Colin Myler, the former
Editor of the News of the World. On 19 October, we heard from Julian Pike, a solicitor at
Farrer & Co and long-time legal adviser to News International, and Mark Lewis, a solicitor
at Taylor Hampton, whose pursuit of the affair as the legal adviser to Gordon Taylor, the
first victim to sue, had been instrumental in exposing the extent of phone-hacking at the
News of the World. Les Hinton, former Executive Chairman of News International, gave
evidence by video-link on 24 October and, on 10 November, we heard again from James
Murdoch. Our predecessor Committees had heard from Rebekah Brooks, Tom Crone,
Colin Myler, former News of the World Editor Andy Coulson, former News of the World
Managing Editor Stuart Kuttner, Mark Lewis and Les Hinton during the course of their
previous inquiries.
8 News International Press Release, 7 July 2011
9 HC Deb, 20 July 2011, Column 917
10 www.guardian.co.uk/media/2011/nov/10/james-murdoch-phone-hacking-myler-crone
6 News International and Phone-hacking
7. We also received a considerable amount of very detailed written evidence, all of which is
published alongside the transcripts of the oral evidence sessions as part of this Report. For
ease of reference, a timeline of events and list of the people involved are both included as
annexes to this Report.
Parliamentary context
8. The truthfulness of evidence given before a select committee, whether in written or oral
form, is a cornerstone of the parliamentary select committee system. Erskine May, The
Treatise on the Law, Privileges and Usage of Parliament, notes that “the House requires
truthful evidence from witnesses and seeks to protect them from being obstructed from
giving evidence”.11 So strong is the presumption of truth, and so seriously do most
witnesses take the process of giving evidence, that it is not usual for select committees to
administer oaths to witnesses.12
9. To enable it to carry out its functions, each House of Parliament enjoys certain rights
and immunities, foremost amongst which is freedom of speech. The sum of these rights
and immunities is known as parliamentary privilege. Breaches in privilege are punishable
under the law of Parliament. Actions which are not breaches of a specific privilege but are
offences against the authority and dignity of the House, and would tend to obstruct or
impede it, are known as contempts of Parliament. Erskine May notes that “the power to
punish for contempt has been judicially considered to be inherent in each House of
Parliament”.13
10. As bodies of the House of Commons, select committees and their members share in the
House’s privileges and the same principles of contempt apply. Witnesses found to have
misled a select committee, to have wilfully suppressed the truth, to have provided false
evidence and even to have prevaricated have all been considered to be guilty of contempt of
Parliament in the past.14 This is no trivial matter, either for select committees or for
witnesses. Select committees rely upon the truthfulness of the evidence given to them in
order to conduct their business. As far as witnesses are concerned, even setting aside the
issue of punishment, to be found in contempt of Parliament brings reputational damage
and public opprobrium. It is, therefore, something that all witnesses would normally strive
to avoid. This perhaps explains why committees only very rarely need to consider the issue
of contempt.
11. The allegation that witnesses have misled the Committee is a grave one and the
awareness of the potentially serious consequences of our conclusions for the individuals
concerned has been an important consideration to us in our work. A select committee
inquiry is not a judicial process but the same principles of fairness and impartiality should
apply, particularly where so much is at stake for specific individuals. For this reason, we
have been particularly careful to separate out fact from opinion in both the evidence that
we have received and in the conclusions that we have reached.
11 Erskine May, Parliamentary Practice, 24th ed., pp 817-818
12 Erskine May, 24th ed., p 824
13 Erskine May, 24th ed., p 203
14 Erskine May, 24th ed., pp 252-253
News International and Phone-hacking 7
The wider context and other investigations into phone-hacking
12. Phone-hacking is currently the subject of the Metropolitan Police’s Operation Weeting
investigation, as well as a separate inquiry by Strathclyde Police and Lord Justice Leveson’s
public inquiry into the culture, practices and ethics of the media. Given that we have been
inquiring into the issue of whether or not the Committee has been misled, in theory the
scope for overlap with either the police investigation or Lord Justice Leveson’s inquiry
should be limited. In practice, the issue of whether or not we have been misled turns on a
detailed understanding of the scope and implications of a number of documents and
events, most of which are likely also to be of interest to the Metropolitan Police and to Lord
Justice Leveson.
13. We have, from the outset of this inquiry, been mindful of the need to avoid
unnecessary overlap with either the work of the Police or Lord Justice Leveson’s inquiry.
Where some degree of duplication has been unavoidable, we have worked very hard to
ensure that we did not pursue lines of inquiry which risked prejudicing future criminal
prosecutions. If some of the individuals who have been of interest to us are suspected of
any form of criminal activity, it is clearly of paramount importance that it is possible for a
case to be brought and for any resulting trial to be fair. For this reason, we have been
careful to respect the requests of individuals who have been arrested, in view of ongoing
police proceedings.
14. The issue of whether or not we have been misled is, however, properly a matter for the
Committee itself to investigate. Indeed, had it not been for our insistence—as well as the
persistence of the Guardian newspaper, certain lawyers and the civil claimants—many of
the issues might never have come to light. We believe that in our work we have struck the
appropriate balance between considering the important matter of a possible contempt of
the House and allowing the Metropolitan Police investigation and…more

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