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			<title>A Year On: How Milly Dowler Shook the World, and Ended a Media Dynasty: FOTHOM XLIV</title>
			<link>http://www.peterjukes.com/joomla3/essays-blogs-journalism/blogs/item/194-a-year-on-how-milly-dowler-shook-the-world-and-ended-a-media-dynasty-fothom-xliv</link>
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			<description><![CDATA[<div class="K2FeedIntroText"><p>It's hard to believe, but at 4pm BST today it will be exactly a year since Nick Davies and Amelia Hill published online a leak from Operation Weeting, the newly recreated (third) investigation into phone hacking, and revealed that the News of the World had hacked the phone of a missing 13 year old schoolgirl, who was found dead six months later, murdered by Levi Bellfield.</p>
<p>That headline changed the political scene here in the UK. Within days the News of the World had closed, and New Corp were forced to withdraw their takeover bid for Britain's most lucrative broadcaster, BSkyB. Within two weeks James and Rupert Murdoch were summoned to appear before a Parliamentary select committee, and David Cameron was forced to set up the Leveson Inquiry.</p>
</div><div class="K2FeedFullText">
<p>Over the next year, the hacking scandal expanding to a corruption and bribery scandal at the News of the World's sister paper, the best selling Sun. Over 50 people have now been arrested. An internal News Corp inquiry, the MSC - set up under pressure from the FBI, SEC and DOJ - has now handed over thousands of emails suggesting bribery of public officials. The scandal expanded to include allegations of TV piracy at News Corp's pay-TV encryption services in Australia, the UK, Italy and the US.</p>
<p>But more than anything, for the UK, the Leveson Inquiry has shone a light into the dark corners of the political media class, and revealed such extensive back door lobbying between the Murdochs and the last five prime ministers, that it was almost like discovering a state within a state. And of course, with Rebekah Brooks, Andy Coulson and James Murdoch meeting virtually every day with David Cameron, George Osborne and Jeremy Hunt, the convergence over the last few years has been almost seamless. As a senior News International journalist expressed it to me:</p>
<blockquote>The Court of Cameron and the Court of Murdoch have become almost totally enmeshed.</blockquote>
<p>This last year has been an amazing journey for our country, and for me personally, as I became inextricably caught up in the coverage of the affair. My book, which explores those 14 days in July which ended a media dynasty - and the 50 years leading up to it - is in the final stages and due for publication at the end of the month.</p>
<p>Below I might share some of the book, particularly the reality of the Milly Dowler story, but mainly this diary is to share YOUR memories, to hear your thoughts about this momentous year</p>
<p>This is from an unedited, unproofed section of Chapter One; <a href="http://www.unbound.co.uk/books/the-fall-of-the-house-of-murdoch">The Fall of the House of Murdoch</a></p>
<blockquote>Accessing mobile voicemail messages without permission has been illegal in the UK since the Computer Misuse Act 1990, which carries a two-year prison sentence as a maximum penalty and has no ‘public interest’ defence. However, throughout the early nineties when mobile phones became ubiquitous, several newspaper scoops were derived from some kind of interception and recording of analogue phone signals. The two most famous are a six-minute bedtime ‘Tampon’ conversation between Prince Charles and Camilla Parker Bowles on a mobile phone (recorded December 18 1989 and published by the Sunday Mirror and the Sunday People in 1993) and the Squidgygate tape of a private conversation between Princess Diana and a close friend (published by the Sun in 1992).
<p>In 2000 the Regulation of Investigatory Powers Act (RIPA) made intercepting a message while ‘in the course of transmission’ illegal. Around this time mobile telephony shifted from analogue to digital and intercepting encrypted signals required expensive technology, generally only available to the security services. However, a back door was left open: voicemails could be accessed remotely through a pin number. Much like the default admin passwords left on computers in the eighties, these pins were often left unchanged from their defaults. One of the first to discover this loophole was Steve Nott who alerted various newspapers to the security breach. As he claimed under oath to the Leveson Inquiry, the newspapers decided to use the security breach for ‘their own purposes’ rather than publish the story. Even phone users who changed their pin codes were still vulnerable to simple password attacks, with data such as dates of birth culled from other sources. If that failed, a bit of social engineering could solve the problem; dedicated investigators could ring the mobile phone service provider, either pretending to be the customer or an employee, and get the pin code set to default.</p>
<p>On the evening of 21 March 2002 after their thirteen-year-old daughter Milly failed to return from school, Bob and Sally Dowler rang the police. Within twenty-four hours a nationwide search for Milly was launched, and soon videos and photos of the missing teenager were broadcast on prime-time television. The News of the World which, under the editorship of Rebekah Brooks and her deputy editor Andy Coulson, had built a reputation for covering child murders, began a furious campaign.</p>
<p><img src="http://i39.photobucket.com/albums/e199/peterjukes/milly1.jpg" alt="" /></p>
<p>Three weeks after Milly’s disappearance, in the first edition of NoW on Sunday April 14th, a major story by-lined by Robert Kellaway, has some interesting details.</p>
<p><img src="http://i39.photobucket.com/albums/e199/peterjukes/milly2.jpg" alt="" align="left" />To any casual reader the details of the messages, not only their content, timing and more importantly the tone of the callers, indicate that these have been listened to by the journalist. It’s not even concealed. There’s no suggestion of a police source. The News of the World, arrogating command of the investigation and trying to sell up a scoop, seems to know more about Milly than the police.</p>
<p>We now know that Milly was already dead, murdered by Levi Bellfield and dumped in Hampshire woodland where her body would not be found for two years.</p>
<p>We also know now that senior editors of the News of the World were at that time ‘110 per cent’ convinced they knew where Milly was on the basis of hacking her voicemail. One of these was a message from a ‘recruitment caller’ offering a job and (according to the Wall Street Journal) the Sunday paper had sent out eight reporters and photographers to stake out an ink-cartridge factory in Epson for three days. When Milly failed to turn up, and investigations proved that Milly wasn’t even on the factory’s books, the News of the World – stumped for any story – came up with a new scandal: that some hoax caller had rung the factory impersonating a recruitment agency.</p>
<p>Later editions of the News of the World changed the original story, removing some of the more incriminating detail, adding some minimal fact checking. The recruitment company wasn’t a hoax caller, they’d just come up with the wrong number for a client seeking work. But still the tabloid persisted in churning the non-story into a lurid smear: someone mentally disturbed had now called the recruitment agent impersonating Milly.</p>
<p><em>The hunt for missing Milly Dowler took a shocking twist last night when it emerged a deranged woman has been posing as the missing youngster.</em></p>
<p><em>Police believe the sick hoaxer called into a recruitment agency pretending to be Milly.</em></p>
<p><em>Staff at the Midlands bureau failed to recognise the name as that of the missing girl and took the woman on their books.</em></p>
<p><em>It is thought the hoaxer even gave the agency Milly's real mobile phone number. Police believe she may have got it by gaining the trust of people who knew the schoolgirl.</em></p>
<p><em>The agency used the number to contact Milly, real name Amanda, when a job vacancy arose and left a message on her voicemail AFTER the 13-year-old vanished at 4pm on March 21.</em></p>
<p><em>It was on March 27, six days after Milly went missing in Walton-on-Thames, Surrey that the employment agency appears to have phoned her mobile.</em></p>
<p>News is a rough draft of history and a breaking story is like a series of jotted notes, but this scribbled nonsense covers old errors with new: the paper had missed the simple explanation of a wrong number call. A police investigation of this would have quickly discounted the red herring. But the News of the World wanted its sensational exclusive and didn’t want to divulge its illegal source, so clumsily tried to cover its tracks. It would continue to pepper its pages with useless speculation for the next two weeks. When their persistent interference with a missing person investigation failed, and they were eventually ignored by Surrey Police, the newspaper sought retribution by suggesting in print the investigating officers were incompetent.</p>
<p>In the past, tabloid newspapers have been accused of acting like judge and jury during criminal trials, but here we have them acting like the leading investigators during a major murder inquiry (the concatenation of errors, followed by bluster and threats toward the police are forensically documented by Tim Ireland on his Bloggerheads site). Most disturbingly, the paper used its access to illegal information to encourage Milly’s parents that she was still alive and even pressure them into delivering an exclusive interview.</p>
<p>For those who have eyes to see, it’s clear that even ten years ago the Sunday tabloid considered itself better than the police and above the law, which of course they were in more ways than one. It also must have been blindingly obvious to any journalist, police officer or senior News International management at the time that Milly’s voicemail had been hacked by News of the World.</p>
<p><strong>snip about 20 pages of the non-reporting of this story over 9 years</strong></p>
<p>How a family’s grief over their missing daughter could become the stuff of ‘entertainment’ is the subject of the next chapter, but forgetting the near obscene outcome, depraved motives, or illegal means of the News of The World’s hacking, the inescapable fact is that journalists will always intrude and that the reality for any individual involved in a big story will nearly always be a form of misrepresentation and intrusion – at least on a personal emotional level.</p>
<p>There has always been, and always will be, an element of callousness in journalistic investigation. To paraphrase one the first great British press barons, Lord Northcliffe, news is public information which usually someone wants to keep private. Depending on the story, this may involve deceiving witnesses or targets, or indeed threatening them with non-accuracy if they don’t disclose. Such were the tactics of Woodward and Bernstein, and any legitimate journalist covering a big important story will tell you this. Most journalists protect their sources for reasons of trust, loyalty and continued information, but ultimately you’re just a piece in a jigsaw – a ‘source’ – and if you’re more than that, then the journalism is compromised. The individual has to be subordinate to politics in this instance. In the words of Peter Mandelson, ‘You can be friendly with journalists, but journalists are never your friends.’ If a story is in the public interest then the private relationship is always secondary.</p>
<p>The clear difference between the News of the World and the investigative discoveries of the Washington Post in the seventies, the Guardian in the nineties, or indeed the Daily Telegraph when it revealed the scandal of MPs’ expenses, is precisely this justification of a wider public interest: the bigger political picture is the exposure of unseen corruption and – eventually – an assurance of more accuracy and transparency in public life.</p>
<p>Just looking at the three different versions of the News of the World’s coverage of Milly Dowler on 14 April 2002, you can see very little public interest in terms of informing the public, or indeed helping the police. Instead there are several degrees of obfuscation and obstruction. Not only did News of the World journalists (ineptly) try to conceal the hacking of Milly’s phone, they consistently lied to witnesses about their identities. Having got the initial story of a runaway wrong, they first blamed the recruitment agency and then whoever called the recruitment agency as a ‘sick hoax’. This is not ground-breaking journalism. This is clumsy and bullying covering of tracks.</p>
<p>The same habits of intrusion, deception and bullying counter accusation would characterise the attitude of many News International journalists for the next decade. Right up to the Leveson Inquiry in 2012, News of the World’s former senior reporter Neville Thurlbeck suggested – until refuted by a Surrey Constabulary investigation – that the Surrey police had given his paper access to the Dowler messages.</p>
<p>Two senior officers in charge of the original missing person probe at the time – one of whom is now the deputy chief constable of Surrey Police – were placed under investigation by the Independent Police Complaints Commission (IPCC) in June 2012 for allegedly failing to explore the News of the World’s blatant phone hacking.</p>
<p>In this instance of phone hacking the contrast with Watergate journalism couldn’t be clearer. During Watergate the Nixon administration blocked Woodward and Bernstein wherever they went. Faced with a wall of silence from those in power, the two American journalists had to occasionally dissemble and divert to secure a bigger story in the public interest. But behind the walls of fortress Wapping, the News of the World journalists pulled rank and power, dissembling and diverting in order to conceal the bigger story from the public interest.<br /> &nbsp;</p>
</blockquote>
<p>The book is partly about the decline of the press, the hollowing out of the main stream media, and of course gives big thanks to my fellow Kossacks and Murdochgate investigators who have helped to end the media dynasty. As an example of the great collaboration I've had - especially from illustrious illustrator ericlewis, edifying editor and fact-checker Bluestateredhead - here's a version of Ceebs database on 'Leveson Forgetfulness' which forms appendix One of the book.</p>
<p>Just so you know, the median amnesia of politicians and senior News International execs in module 3 of the Leveson Inquiry was around 4 per cent</p>
<p>For the victims of the press in module 1, the median amnesia was 0.3 per cent</p>
<p><img src="http://i39.photobucket.com/albums/e199/peterjukes/LevesonForgetfulness.jpg" alt="" /></p>
<p><span class="update"><a href="http://www.peterjukes.com/joomla3//story/2012/07/04/1106125/-A-Year-On-How-Milly-Dowler-Shook-the-World-and-Ended-a-Media-Dynasty-FOTHOM-XLIV#20120704075115" name="20120704075115"></a><strong>7:51 AM PT</strong>:</span> Great. Got the dummy of the book cover - in full tabloid style</p>
<p><img src="http://i39.photobucket.com/albums/e199/peterjukes/FOTHOM.jpg" alt="" /></p></div>]]></description>
			<author>pdjukes@gmail.comv15 (Peter Jukes)</author>
			<category>Blogs</category>
			<pubDate>Thu, 05 Jul 2012 00:00:00 +0000</pubDate>
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		<item>
			<title>BREAKING James Murdoch Resigns from News International UPDATED</title>
			<link>http://www.peterjukes.com/joomla3/essays-blogs-journalism/blogs/item/190-breaking-james-murdoch-resigns-from-news-international-updated</link>
			<guid isPermaLink="true">http://www.peterjukes.com/joomla3/essays-blogs-journalism/blogs/item/190-breaking-james-murdoch-resigns-from-news-international-updated</guid>
			<description><![CDATA[<div class="K2FeedIntroText"><p>It was a long time coming, but inevitable six months ago. <a href="http://www.guardian.co.uk/media/2012/feb/29/leveson-inquiry-williams-maberly-surtees-live">James Murdoch has stepped down as chair of News International</a>, signalling the Fall of the House of Murdoch as the dynastic succession to Rupert's News Corp empire is finished. The official statement - which is probably worth no more than a host of News Corp press statements which have either turned out to be highly misleading in the past (some outright lies indeed)</p>
<blockquote>News Corporation today announced that, following his relocation to the company's headquarters in New York, James Murdoch, deputy chief operating officer, has relinquished his position as executive chairman of News International, its UK publishing unit. Tom Mockridge, chief executive officer of News International, will continue in his post and will report to News Corporation president and COO Chase Carey. "We are all grateful for James' leadership at News International and across Europe and Asia, where he has made lasting contributions to the group's strategy in paid digital content and its efforts to improve and enhance governance programs," said Rupert Murdoch, chairman and chief executive officer, News Corporation. "He has demonstrated leadership and continues to create great value at Star TV, Sky Deutschland, Sky Italia, and BSkyB. Now that he has moved to New York, James will continue to assume a variety of essential corporate leadership mandates, with particular focus on important pay-TV businesses and broader international operations." "I deeply appreciate the dedication of my many talented colleagues at News International who work tirelessly to inform the public and am confident about the tremendous momentum we have achieved under the leadership of my father and Tom Mockridge," said James Murdoch. "With the successful launch of the Sun on Sunday and new business practices in place across all titles, News International is now in a strong position to build on its successes in the future. As deputy chief operating Officer, I look forward to expanding my commitment to News Corporation's international television businesses and other key initiatives across the company."</blockquote>
<p>More as I get it. OK, this is all on the hoof. Yes James resigned from other subsidiary boards several months ago as I detailed in another diary. But this is the biggie: NI was bidding for BSkyB which he also chairs - expect a resignation there too. More news in - still involved in BSkyB - but again this is slow withdrawal. Expect more retreats soon http://www.guardian.co.uk/media/2012/feb/29/james-murdoch-resigns-news-international-chairman</p>
<blockquote>Wednesday's move sees him give up responsibility for News Corp's crisis-hit British newspaper operation as he completes his relocation to New York. The man once seen as his father Rupert Murdoch's automatic heir at the top of News Corp retains existing responsibility for "global television", overseeing busineses including the company's 39% stake in BSkyB, Sky-branded pay-TV companies in Europe and Star in Asia – and only gains the opportunity to become involved with the company's US Fox television operation as he settles in across the Atlantic. James Murdoch's managerial move away from News International explains why he was not in London to help oversee the launch of the Sun's Sunday edition, which has been personally supervised by his father. Friends say he has been eager to leave the UK and drop responsibility for the Wapping newspapers for several months as the phone hacking scandal enveloped the London outpost of the organisation.</blockquote>
<p>And there are rumours of a major arrest in the pipeline.. just sayin' <strong>IMPORTANT ASIDE: </strong>I've been in touch with Alastair Morgan, whose brother Daniel was brutally murdered in South London in 1988, by suspects with close connection to the NoW hacking team. These same individuals were sponsored by NoW to harass and survey the police detectives re-examining the case in 2002. Ceebs had a diary yesterday about it, <a href="http://www.dailykos.com/story/2012/02/28/1069238/-Murdoch-and-Murder">Murdoch and Murder</a>. Tom Watson is going to make an important statement at 4pm BST (11 am EST) about Daniel Morgan's murder. I expect, under Parliamentary privilege, he might make some explosive revelations.</div><div class="K2FeedFullText"></p>
<p><span class="update"><a name="20120229063624" href="http://www.peterjukes.com/joomla3//story/2012/02/29/1069366/-FOTHOM-XXXVI-BREAKING-James-Murdoch-Resigns-from-News-International#20120229063624"></a><b> 6:36 AM PT</b>:</span> You'll probably find better analysis of this breaking news in the comments rather than my constant updates</p>
<p><span class="update"><a name="20120229063828" href="http://www.peterjukes.com/joomla3//story/2012/02/29/1069366/-FOTHOM-XXXVI-BREAKING-James-Murdoch-Resigns-from-News-International#20120229063828"></a><b> 6:38 AM PT</b>:</span> Just had to share this tweet from <a href="https://twitter.com/#!/OwenJones84">Owen Jones</a></p>
<blockquote>James Murdoch gone. If this was Lord of the Rings, that's Saruman down. Still Sauron to go</blockquote>
<p><span class="update"><a name="20120229064453" href="http://www.peterjukes.com/joomla3//story/2012/02/29/1069366/-FOTHOM-XXXVI-BREAKING-James-Murdoch-Resigns-from-News-International#20120229064453"></a><b> 6:44 AM PT</b>:</span> And another keeper</p>
<blockquote>Don't panic everyone. In a few short weeks he'll be relaunched as James Murdoch on Sunday.</blockquote>
<p><span class="update"><a name="20120229070716" href="http://www.peterjukes.com/joomla3//story/2012/02/29/1069366/-FOTHOM-XXXVI-BREAKING-James-Murdoch-Resigns-from-News-International#20120229070716"></a><b> 7:07 AM PT</b>:</span> And another</p>
<blockquote>James Murdoch has now been lent to Rebekah Brooks, having reached the end of his working life.</blockquote>
<p>A reference to the police horse the Met loaned to Rebekah, which was returned in poor condition.</p>
<p><span class="update"><a name="20120229072903" href="http://www.peterjukes.com/joomla3//story/2012/02/29/1069366/-FOTHOM-XXXVI-BREAKING-James-Murdoch-Resigns-from-News-International#20120229072903"></a><b> 7:29 AM PT</b>:</span> Off to appear on Sky News about this - UK viewers wish me luck</p>
<p><span class="update"><a name="20120229092706" href="http://www.peterjukes.com/joomla3//story/2012/02/29/1069366/-FOTHOM-XXXVI-BREAKING-James-Murdoch-Resigns-from-News-International#20120229092706"></a><b> 9:27 AM PT</b>:</span> About to appear on CNN international, and apparently will be interviewed for Wolf Blitzer's situation room too&nbsp;<img src="http://i39.photobucket.com/albums/e199/peterjukes/cnn1.jpg" width="550" style="margin: 7px;" /></p>
<p><span class="update"><a name="20120229142019" href="http://www.peterjukes.com/joomla3//story/2012/02/29/1069366/-FOTHOM-XXXVI-BREAKING-James-Murdoch-Resigns-from-News-International#20120229142019"></a><b> 2:20 PM PT</b>:</span> CNN international interview</p>
<p><a href="http://edition.cnn.com/video/#/video/business/2012/02/29/qmb-intv-murdoch-biographer.cnn">http://edition.cnn.com/...</a></p>
<p><span class="update"><a name="20120229143933" href="http://www.peterjukes.com/joomla3//story/2012/02/29/1069366/-FOTHOM-XXXVI-BREAKING-James-Murdoch-Resigns-from-News-International#20120229143933"></a><b> 2:39 PM PT</b>:</span> Since the Guardian, with help from the NYT, has been the main force exposing this, let me share their brilliant new video</p>
<p><object width="460" height="370" data="http://www.guardian.co.uk/video/embed" type="application/x-shockwave-flash"><br /><br /><br /><br /><br /><br /><param name="movie" value="http://www.guardian.co.uk/video/embed" /><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="flashvars" value="endpoint=http://www.guardian.co.uk/media/video/2012/feb/29/open-journalism-three-little-pigs-advert/json" /></object></p>
<p><span class="update"><a name="20120229144907" href="http://www.peterjukes.com/joomla3//story/2012/02/29/1069366/-FOTHOM-XXXVI-BREAKING-James-Murdoch-Resigns-from-News-International#20120229144907"></a><b> 2:49 PM PT</b>:</span> And this is what the leading commentator for the <a href="http://www.telegraph.co.uk/comment/columnists/peter-oborne/9113596/Is-Rupert-Murdoch-a-fit-and-proper-person-to-run-a-company.html">Conservative Daily Telegraph is now saying</a></p>
<blockquote>Until now, it is only the lesser people who have carried the can for the culture of criminality that flourished inside News International, with the buck stopping with editors such as Andy Coulson and Rebekah Brooks. The time has come to look higher up – and I am not thinking of hapless James Murdoch, who belatedly resigned as the chairman of News International yesterday afternoon.
<p>Rupert Murdoch, the company’s founder, insists that he never had any knowledge of wrongdoing, and no doubt that is true. But he was the man at the top. He took a very keen interest in the way his British newspapers were run (a newspaperman to his fingertips, last weekend he could be seen hard at work in the newsroom as the Sun on Sunday was launched) and it was he, and nobody else, who set the culture.</p>
<p>We learn more about this culture practically every day. It was a culture of bullying and intimidation, where facts were distorted and lies told. It was a culture which merged the boundaries between police, media and the political class. Though brilliant in many ways, it also did a great deal to debase and even to destroy our public life. Now Rupert Murdoch, an American citizen of Australian heritage, is promoting the break-up of Britain through an alliance with Alex Salmond, leader of the Scottish National Party (they met yesterday).</p>
<p>Murdoch’s culture, we now know for a fact, included the criminal culture at the News of the World. We have also heard the corruption allegations from Sue Akers concerning the Sun. Of course nothing has been proved, but if even half of what she says turns out to be true, then it is time to ask whether Rupert Murdoch is a fit and proper person to run not just a newspaper, but any British public company.</p>
</blockquote>
<p>As I've discovered through writing my book, Rupert set the culture. In the US he did this with the Summer of Sam scandal of 'celebrity killer' in his New York Post in the 1970s. Hackgate is the logical extension of his modus operandi.</p>
<p><span class="update"><a name="20120229154002" href="http://www.peterjukes.com/joomla3//story/2012/02/29/1069366/-FOTHOM-XXXVI-BREAKING-James-Murdoch-Resigns-from-News-International#20120229154002"></a><b> 3:40 PM PT</b>:</span> One last comment about the Daniel Morgan Murder, and the relationship between the former prime suspect and our prime minister</p>
<blockquote>the Marunchak business takes us deep down into a bloody gutter.
<p>Rees, having been investigated several times for Daniel Morgan's murder, the last one scuppered by NoW intervention, was rehired by Coulson after prison</p>
<p>The same Coulson who was media supremo at No 10, with security clearance to read the most sensitive secrets of state</p>
<p>It beggars belief. The corruption rose from the gutter to the heights of the political establishment.</p>
<p>&nbsp;</p>
<p><em><a href="http://www.dailykos.com/story/2012/02/29/1069366/-FOTHOM-XXXVI-BREAKING-James-Murdoch-Resigns-from-News-International">Originally posted on Daily Kos</a></em></p>
</blockquote></div>]]></description>
			<author>pdjukes@gmail.comv15 (Peter Jukes)</author>
			<category>Blogs</category>
			<pubDate>Wed, 29 Feb 2012 23:45:56 +0000</pubDate>
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			<title> The Dynasty is Over: FALL OF THE HOUSE OF MURDOCH XXVI: BREAKING:</title>
			<link>http://www.peterjukes.com/joomla3/essays-blogs-journalism/blogs/item/183-the-dynasty-is-over-fall-of-the-house-of-murdoch-xxvi-breaking</link>
			<guid isPermaLink="true">http://www.peterjukes.com/joomla3/essays-blogs-journalism/blogs/item/183-the-dynasty-is-over-fall-of-the-house-of-murdoch-xxvi-breaking</guid>
			<description><![CDATA[<div class="K2FeedIntroText"><p>{jb_dropcap}No, there is no major news about the three major investigations into multiple phone and computer hacking, bribing police officials, or perverting the course of justice by News International in the the UK. Nor is there any major development in the DOJ investigation into the parent company Newscorp, for violating the Foreign Corrupt Practices Act, or other examples of systemic criminality (RICO violations) like the <a href="http://www.crainsnewyork.com/article/20110926/MEDIA_ENTERTAINMENT/110929917">Floorgraphics case</a>. No, the simple stunning verdict on the Murdoch Dynasty has been delivered by Newscorps Shareholders</p>
<h2>Shareholders Deliver a Damning Verdict on James and Lachlan Murdoch</h2>
<hr />
<p>As handsomely <a href="http://www.dailykos.com/story/2011/10/21/1028721/-Murdoch-Shareholders-Meeting?via=sidebyuserrec">diaried by Ceebs</a>, last Friday's Newscorp shareholders meeting, held in high security in LA rather than in New York, was still a tumultuous affair, with many of independent shareholders calling the management to task over issues of corporate governance, probity, possible further legal actions, and of course the underlying complaint that Rupert Murdoch treats the public corporation like a 'family candy store'. Usually as Murdoch's biographer Michael Wolff explains in a tellingly titled piece: <a href="http://www.guardian.co.uk/commentisfree/cifamerica/2011/oct/23/rupert-murdoch-news-corp-dictator?INTCMP=SRCH">Rupert Murdoch: News Corp's great dictator on the brink</a></p>
<blockquote>Under normal circumstances, Rupert Murdoch doesn't have much patience for the annual shareholders' meetings that are required by law of American public companies. He regards them as a farce, because they cannot change the outcome in a company where a voting majority is secure, and as an exercise in liberal corporate law designed to put him personally on the spot.</blockquote>
<p>This time it was different. This time the voices couldn't be ignored, and they were joined by the stalwart British Parliamentarian, Tom Watson, initially a victim and now a persistent campaigner against both the industrial scale phone hacking in the UK (among other illegal practices) and the coverup. The vote was supposed to be delivered <a href="http://investor.newscorp.com/sec.cfm">here</a> last week. Now you can see the reason for the delay. Pegasus Corporate Governance has just <a href="http://twitter.com/#!/PegasusCorpInfo">tweeted</a>&nbsp;the independent votes:</p>
<blockquote>2011 AGM James Murdoch: For 59,297,033 (19.23%), <strong>Against</strong> 232,013,203 (<strong>75.24%</strong>) Abstain 494,831 Non-Votes 16,564,060</blockquote>
<blockquote>2011 AGM Lachlan Murdoch: For 67,175,479 (21.78%), <strong>Against </strong>224,151,616 (<strong>72.69%</strong>) Abstain 477,972 Non-Votes 16,564,060</blockquote>
<p>It doesn't constitute a majority since, though only owning 10 percent of the shares, the Murdoch family have 40 percent of the voting rights. But this is like Thatcher winning the first round of the votes in 1990 - not by a big enough margin. She was holed in the water. The vote of non confidence is resounding. As <a href="http://www.guardian.co.uk/media/2011/oct/24/james-murdoch-news-corp-shareholders-vote?CMP=twt_gu">the Guardian</a>&nbsp;puts it:</p>
<blockquote>James Murdoch's future at News Corporation looks increasingly precarious as shareholders delivered a damning verdict on his tenure amid widespread criticism of his handling of the hacking scandal. Following a contentious meeting in Los Angeles last week News Corporation shareholders lodged a massive protest vote against James and his brother Lachlan Murdoch. A majority of independent shareholders voted against the re-election of chairman Rupert Murdoch's sons James and Lachlan Murdoch. James Murdoch received the largest vote against his re-election at 35%. James, 38, faces a second grilling in the Parliament next month over phone-hacking at The News of The World, one of News Corp's UK newspapers. Some 34% of shareholders voted against Lachlan Murdoch 40. <strong>After subtracting the shares controlled by Rupert Murdoch, 67% of the votes went against James Murdoch and 64% against Lachlan</strong>, said Julie Tanner, assistant director of News Corp investor Christian Brothers Investment Services (CBIS), who last week called for Rupert Murdoch to step down as chairman after the "extraordinary scandals" at the company. "Shareholders are saying loud and clear that this board has failed as a group," she said.</blockquote>
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<h2>A Family at War: the Rift between Generations</h2>
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<p>So that's it. In case you missed it, last week there was a well substantiated <a href="http://www.nytimes.com/2011/10/19/business/media/murdochs-infighting-clouds-future-of-news-corp.html?_r=2&amp;hp=&amp;pagewanted=all">New York Times story</a>saying the father was blaming the son for the debacle of the phone hacking coverup:</p>
<blockquote>It was the newspaper business that would ultimately prove the point of deepest fissure between father and son. After taking control of News International, the company’s British newspaper subsidiary that publishes The Times of London, The Sun and News of the World until it was shuttered this summer, James made some abrupt course corrections. <em>SNIP - fascinating aside about Murdoch and Gordon Brown</em> It was in his role as head of the newspaper division that James approved a 2008 settlement with Gordon Taylor, head of an organization representing Britain’s professional soccer players, over allegations of voice mail hacking. That settlement is now at the center of a significant public dispute between James and two former News Corporation executives in London, who offer a conflicting account of events leading to the payment. The executives claim that they had informed James that the voice mail hacking went beyond the work of a lone “rogue” reporter and a private investigator that the company had acknowledged at the time. If that was the case, then law enforcement could argue that the settlement was intended as an attempt to buy the silence of victims, which legal experts say could provide the basis for British prosecutors to pursue criminal charges. James has forcefully denied their assertion, saying the men did not tell him about a broader pattern of phone hacking. Some who know him have suggested that the most he is guilty of is listening to advisers who told him the settlement would be less costly than a court fight.</blockquote>
<p>With James Murdoch due to return to parliament in just over a week to answer more questions about how he could have possibly conceived it was a sole reporter involved in phone hacking, his days are clearly numbered. With both sons now discredited, and Elisabeth leaving the board, the dynastic control over Newscorp is over but in name. Poetic justice really, since Rupert, who inherited millions and the newspaper business from his father, has always claimed to be a buccaneering self-made man, and an enemy of the Royal Family because of their inherited privilege. But the story isn't over. Michael Wolff predicts last week was Rupert's shareholder's meeting. The police investigations are far from finished, and the evidence of corporate malfeasance and coverup is rife both sides of the Atlantic.</p>
<h2>An Obloquy to End All Obloquies</h2>
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<p>But I'll leave the best recent tirade against Murdoch to one of his former colleagues: the Canadian born former newspaper proprietor, Conrad Black, who still languishes in jail because of his crimes and misdemeanours. It seems prison time has actually done wonders for his sense of probity. As he fulminates <a href="http://www.huffingtonpost.com/conrad-black/rupert-murdoch-news-corp-_b_1017372.html">in the Huffington Post</a></p>
<blockquote>For decades, Murdoch has smeared, lied, double-crossed his political benefactors, including Jimmy Carter, Margaret Thatcher, John Major, a long sequence of Australian leaders, and the democratic forces of Hong Kong. When the extent of his skullduggery finally oozed out, sluggish and filthy, including the details of the British government's dotage on him, this summer, Murdoch's old possum routine didn't play as convincingly as it had in its many previous auditions, when he purported to be contrite over the shortcomings of errant employees. Bumbling into a parliamentary hearing in London, supported on each arm like a centenarian semi-cadaver, mumbling about humility, trying to represent News Corporation's board as independent when it is public corporate America's most docile board of directors and is composed entirely of hacks, retainers, and ex-employees; scrambling and whimpering and paying millions to victims of his outrages; putting his name on a Journal op-ed piece about education; it's all of a piece and none of it resonates anymore. SNIP My admiration for his boldness and acumen and our previous 25 years of more than civil relations make it unpleasant, despite his unspeakable assault on me, to have to conclude that he is, in my personal belief, <strong>a psychopath.</strong> I think behind his nondescript personality lurks a repressed, destructive malice. <strong>His is, and has been proved to be, in some measure, a criminal organization.</strong> This, apart from weaknesses of leadership, was always the greatest vulnerability of post-Reagan America's conservatism: its reliance on a man who would put anyone over the side and hoist any colours when the wind changed. SNIP In the extreme winter of his days, Rupert Murdoch's failing hands have dropped the mask; he is a malignant force and it would be a good thing for the world to be done with him.</blockquote>
<p>Wow. So Rupe's off his Christmas Card list I bet. <strong>2011 was a year when dictators fell. Let's ensure that Murdoch joins Ben Ali, Muburak and Gaddafi in the list of toppled tyrants. </strong></p></div>]]></description>
			<author>pdjukes@gmail.comv15 (Peter Jukes)</author>
			<category>Blogs</category>
			<pubDate>Tue, 25 Oct 2011 19:59:48 +0000</pubDate>
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