Sunday, 12 February 2012

Murdoch media empire engulfed in scandal as Scotland Yard's net spreads


A total of 21 people have now been arrested in the bribery probe, Operation Elveden, including three police officers, though no one has yet been charged. Those arrested include Rebekah Brooks, the former chief executive of Murdoch's News International, the company that owns the Sun, and ex-News of the World editor Andy Coulson, who went on to become prime minister David Cameron's communications chief.

That the arrests are linked to alleged bribes paid not just to police officers but prison staff and Ministry of Defence officials, confirms Scotland Yard is throwing its net wider as it seeks to root out corruption. The arrest of an MoD official may invite speculation that the Official Secrets Act could have been breached.

 Legal experts speculate that the bribery allegations could lead to the broadcasting watchdog, Ofcom, reviewing Murdoch's stake in Sky television. Under UK law, owners must prove they are "fit and proper" to own media interests. Any evidence suggesting News International titles were engaged in the corruption of officials could also trigger an investigation by the US authorities into breaches of the Foreign Corrupt Practices Act (FCPA) which prohibits corrupt payments to foreign government officials.

It is this – the threat of the cancer spreading outside the UK and eating away at an empire that includes Fox News and 20th Century Fox film studios, and last year had revenues of $34bn (£21.5bn) – that really worries Murdoch's lieutenants.

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