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July 18, 2011

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Murdoch's former CEO arrested

Police arrested Rebekah Brooks, Rupert Murdoch's former British CEO, yesterday in connection with their ongoing phone hacking and police bribery investigation.

The former News of the World editor said she was "assisting the police with their inquiries."

Brooks, 43, is being questioned on suspicion of conspiring to intercept communications - phone hacking - and on suspicion of corruption, which relates to bribing police for information.

A statement released on her' behalf said she "voluntarily attended a London police station to assist with their ongoing investigation."

"This was a prearranged appointment," said her spokesman, David Wilson - although he said Brooks was not aware she was going to be arrested.

The arrest comes just two days before Brooks, Murdoch and his son James are due to answer questions from a parliamentary committee investigating phone hacking. Yesterday's arrest throws that appearance before the Culture, Media and Sport Committee into question. Brooks would not have to answer questions that could prejudice a criminal investigation.

Brooks, one of Murdoch's most loyal lieutenants, stepped down on Friday as head of his British newspapers. She was editor of the now-defunct News of the World between 2000 and 2003, when some of the phone hacking took place, but has always said she did not know it was going on, a claim greeted with skepticism by many who worked there.

At an appearance before politicians in 2003, she admitted that News International had paid police for information. That admission of possible illegal activity went largely unchallenged and, at the time, little noticed.

Police have already arrested nine other people connected to Murdoch's British media empire over allegations the News of the World hacked into the voicemail of hundreds of celebrities, politicians, rival journalists and even murder victims. No one has yet been charged.

The arrest also piles more pressure on Prime Minister David Cameron, a friend and neighbor of Brooks, who has met her many times and invited her to stay at his official country retreat.

Cameron is already under fire for hiring Andy Coulson, who resigned as News of the World editor after two employees were jailed for corruption in 2007, as his communications chief. Coulson resigned from the Downing Street post in January after police reopened their hacking investigation. He was arrested earlier this month and questioned before being released on bail.

Brooks' arrest is the latest blow for Murdoch, who is struggling to tame a scandal that has already destroyed one major British tabloid, cost the jobs of two of his senior executives and sunk his dream of taking full control of lucrative satellite broadcaster BSkyB.

Last week, Murdoch shut down the 168-year-old News of the World after it was accused of eavesdropping on cell phones for years.

Murdoch also abandoned his BSkyB takeover bid, and two of his senior executives resigned - Brooks and Wall Street Journal publisher Les Hinton.

But his critics say that is not enough. Labour Party leader Ed Miliband said yesterday that Murdoch has "too much power" in Britain and his share of British media ownership should be reduced.

Cameron's Conservative-led government and the London police also are facing increasing questions about their close relationship with Murdoch's media empire.

Cameron has held 26 meetings with Murdoch executives since he was elected in May 2010 and invited several to his country retreat. Senior police officers also had close ties to Murdoch executives.

Records show that senior officers have had numerous meals and meetings with News International executives in the past few years. The force also hired Neil Wallis, a former News of the World executive editor arrested last week, as a part-time PR consultant for a year.

Murdoch is eager to stop the crisis from further spreading to the United States, where many of his most lucrative assets - including the Fox TV network, 20th Century Fox film studio, The Wall Street Journal and the New York Post - are based.

The FBI has already opened an inquiry into whether 9/11 victims or their families were also hacking targets of News Corp journalists.





 

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