Rupert Murdoch not ‘fit’ to own major company: UK lawmakers

This is the first report among the many inquiries into issues related to the phone-hacking controversy. Murdoch bought the News of the World in 1968,and has since expanded his empire in Britain across media platforms.

Murdoch’s News Corporation said it was carefully examining the 125-page report titled ‘News International and Phone-Hacking’,but admitted that there was “significant wrongdoing” at the News of the World.

The committee unanimously agreed that key individuals employed by Murdoch — Les Hinton,Tom Crone and Colin Myler had misled parliament,but there was lack of unanimity on the conclusion that Murdoch was “not a fit person to exercise the stewardship of a major international company”.

The committee’s findings will now be presented to parliament,where a motion is likely to be moved and voted on the likely action to be taken against the three individuals who are accused of misleading parliament.

The panel said it was now for parliament’s lower House of Commons to decide “what punishment should be imposed” on those it thinks have treated the committee with contempt.

The committee’s conclusion is expected to contribute to the ongoing inquiry by regulator Ofcom on the issue whether Murdoch’s BSkyB is a ‘fit and proper’ organisation to hold a broadcasting licence in Britain.

The committee that investigated the issue at length and heard evidence from Rupert Murdoch and his son James Murdoch last year,came out with conclusions that have been described as “explosive” and “extremely damning”.

The committee said: “On the basis of the facts and evidence before the Committee,we conclude that,if at all relevant times Rupert Murdoch did not take steps to become fully informed about phone-hacking,he turned a blind eye and exhibited wilful blindness to what was going on in his companies and publications”.

It added: “This culture,we consider,permeated from the top throughout the organisation and speaks volumes about the lack of effective corporate governance at News Corporation and News International.

“We conclude,therefore,that Rupert Murdoch is not a fit person to exercise the stewardship of a major international company”.

The committee of MPs began its inquiry in July 2011 in the wake of fresh newspaper revelations about the extent of hacking at the now-defunct News of the World tabloid,with reported victims including the murdered schoolgirl Milly Dowler and the families of victims of the 7/7 London bombings.

In the report,the committee said: “The notion that given all that had gone on,right back to evidence given over payments to the police to our predecessor Committee in 2003 a hands-on proprietor like Rupert Murdoch had no inkling that wrongdoing and questionable practice was not widespread at the News of the World is simply not credible”.

It added: “Given his evidently fearsome reputation,the reluctance of News International employees to be open and honest internally and in their evidence to the Committee is readily understandable.

“In assessing their evidence,the culture emanating from the top must be taken into account,and is likely to have had a profound effect on their approach in 2007 and 2009 in evidence given to the Committee”.

In another key conclusion,the committee report said: “Corporately,the News of the World and News International misled the Committee about the true nature and extent of the internal investigations they professed to have carried out in relation to phone hacking; by making statements they would have known were not fully truthful; and by failing to disclose documents which would have helped expose the truth”.

It added: “Their instinct throughout,until it was too late,was to cover up rather than seek out wrongdoing and discipline the perpetrators,as they also professed they would do after the criminal convictions.

“In failing to investigate properly,and by ignoring evidence of widespread wrongdoing,News International and its parent News Corporation exhibited wilful blindness,for which the companies’ directors including Rupert Murdoch and James Murdoch should ultimately be prepared to take responsibility.”

News Corporation said in a statement: “News Corporation is carefully reviewing the Select Committee’s report and will respond shortly. The Company fully acknowledges significant wrongdoing at News of the World and apologises to everyone whose privacy was invaded.”

After initially claiming that malpractice was limited to one “rogue” reporter at the News of the World,News International has now settled dozens of civil cases admitting liability for hacking between 2001 and 2006.

More than 6,000 possible victims have been identified and the police have so far made a number of arrests in connection with an investigation reopened in January 2011 — although no charges have yet been brought.