Spotlight on Murdoch as Hacking Scandal Deepens

Rupert Murdoch's reputation has been irrevocably damaged, say media observers. (Oli Scarff/Getty Images) The Australian media may have received a warning on media ethics and standards this week, but alarm bells are sounding in the Murdoch camp as the News International hacking scandal deepens.

Greens leader Bob Brown has called for an independent media watchdog in Australia following revelations that journalists from Rupert Murdochs UK tabloid, News of the World, had been hacking the phone calls of celebrities and others, including the phone of a teenage murder victim during a police investigation.

Senator Browns call for an inquiry sent a flurry through Australias media circles, but received a mixed reception from politicians, with Prime Minister Julia Gillard saying she is prepared to discuss the need for a media inquiry and Opposition Leader Tony Abbott rejecting the idea.

Australian-born Rupert Murdoch, 80, has a large stake in the Australian media with News Limited, a subsidiary of the New York-based News Corp, owning around 150 newspapers locally, including major metropolitan dailies and community newspaper groups in most capital cities.

While Senator Brown, who has dubbed the Murdoch Press hate media, has been joined by Labor Senator Stephen Conroy and former Prime Minister Paul Keating in descrying News Ltd for biased reporting, there has been little evidence yet in Australia of the underhanded behaviour seen in the News of the World scandal.

Reputation Damaged

This, however, will do little to assuage the Murdoch camp. A week ago, it was impossible to believe the international media magnate, who could call world leaders on a whim, would fall so rapidly from grace.

With eight of Rupert Murdochs staff at News of the World arrested in the UK and plenty more information to surfac! e, Dr Jo seph Fernandez, Head of the Journalism Department at Curtin University, says Mr Murdochs standing internationally has been severely damaged.

It is really quite a dramatic time. It will take a very, very long time for any repair to come about. It is even possible that the legacy he leaves behind, however impressive it is, cant help but be tainted by what has just happened, he told The Epoch Times.

How much damage the scandal will do to Rupert Murdoch remains to be seen. Some have suggested that it will be board member and Ruperts youngest son James Murdoch who will take the ultimate rap.James, 38, is chairman of the companys British TV operations BSkyB and in 2007 became head of News Corps European and Asian operations. Now he could face criminal charges after acknowledging that he had approved finances for out of court settlements to hacking victims.

US security agencies have started their own investigations, with the FBI admitting that they are investigating reports that News of the World journalists hacked into the phones of 9/11 victims. The US Securities and Exchange Commission is likely to check whether News Corp paid off British police officials.

Under American law, the Foreign Corrupt Practices Act (FCPA) makes it illegal for US companies to pay bribes to foreign government officials.Continued on the next page ... Murdochs Watergate
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