Sunday, 10 July 2011

Phone Hacking Scandal Infects US Interests

It appears that US hedge funds are getting jittery over what is happening with News International/News Corp amid the phone hacking scandal, and quite right too.

In the UK, the most quoted phrase is "fit and proper" regarding NI to control BSkyB, and whether such luminaries as the execs of News International should be in control of the television company, while in the US there is speculation that, under the Foreign Corrupt Practices Act, executives could be prosecuted.

This could related to payments paid to police officers in the UK. Even though the offences may have taken place in the UK, the Act specifies:


"The anti-bribery provisions of the FCPA make it unlawful for a U.S. person, and certain foreign issuers of securities, to make a payment to a foreign official for the purpose of obtaining or retaining business for or with, or directing business to, any person. Since 1998, they also apply to foreign firms and persons who take any act in furtherance of such a corrupt payment while in the United States. " (Wikipedia)


So there is the potential for "prosecution creep" taking hold and from reading the broadsheets, it certainly looks as if some US authorities are watching developments.

As is that wasn't bad enough, Renault, car manufacturers, has supposedly indicated that it is withdrawing all advertising from all News International publications, while the Church of England is threatening to sell its £4million shares in News International. It speaks volumes that the CoE actually invested in this company in the first place and questions where their investment morals stand, but that is probably a question for another day.

Suffice to say, talk of toxicity could be bearing fruit.

As each day passes, it is incredible to see just how incestuous the corridors of power can be. Take the case of Lord (Ken) MacDonald who was the Director of Public Prosecutions and who headed the CPS during the first inquiries in 2005/6. That they appear to have failed abysmally in their investigations, along with the police, is astonishing enough, but then MacDonald crosses the divide and now advises News International on how it handles legal claims brought by victims of this phone hacking scandal.

In some places they'd call you a turn-coat. Others might say the morals of a hyena at a food fest.

Other cosying up seems to include the pseudo Rat Pack setup with NI senior staff and politicians. David Cameron and his wife, along with Rebekah and Charlie Brooks, Mathew Freud (son of the late Clement Freud) and Elisabeth (Murchoch) along with Andy Coulson, Rupert and James Murdoch all enjoyed each others company at times, wining and dining, maybe horse riding or going for walks in the Gloucester countryside, while both Cameron and Ed Miliband attended a recent Murdoch party. Not to forget ex-PM Gordon Brown's wife organising Rebekah Brook's 40th, while it is suggested Blair had a close relationship with Rupert Murdoch.

And we, the public, expect these politicians to make decisions and judgements based on what is good for the country, free and fair?

They are quick to tell us what behaviour is constituted as acceptable. They are pretty vociferous at pointing the finger at the wrongdoers, who don't fit in with their vision of socially acceptable behaviour, yet they find it perfectly acceptable to socially meet with people who have a vested interest in increasing their own personal wealth and power. Where's the 'fair society' and 'we're all in it together' ethos now David?

Fridays press conference showed that the PM was morally and professionally bankrupt in his dealings and judgments relating to News International. When politicians cosy up to any company for favours, they should keep in mind that he who pays the piper calls the tunes.

On a final note, it was interesting to read about what James Murdoch supposedly said at the Edinburgh TV Festival a few years back in a speech entitle "The Absence of Trust" :

"The only reliable, durable and perpetual guarantor of independence is profit."

Yeah, and the only guarantor of profit is honesty and trust, one might add.

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