Share

FBI probes News Corp

New York - After growing pressure from US lawmakers, the FBI launched a preliminary probe on Thursday to see if the phone-hacking firestorm at Rupert Murdoch's media empire had reached American shores.

News International, the British firm at the center of a growing scandal over the alleged phone hacking of murder victims and bribing of police officers, is a subsidiary of Murdoch's New York-based News Corporation.

US lawmakers had been calling for days for a probe after allegations emerged in the press that News Corp. employees sought to gain access to the phone records of September 11 victims.

"We are aware of the allegations and we are looking into it," a spokesperson told AFP from the FBI's offices in New York, where specialised cybercrime and white collar crime units were expected to make the inquiries.

"For allegations into the 9/11 victims, this would be done out of New York," a legal source told AFP, speaking on condition of anonymity because he was not authorised to speak about the case.

A Justice Department spokesperson said only: "The department does not comment specifically on investigations, though anytime we see evidence of wrongdoing, we take appropriate action."

House Homeland Security Committee Chairman Peter King, a Republican, had sent a letter to FBI Director Robert Mueller urging him to look into allegations of possible News Corp impropriety in the US.

"The 9/11 families have suffered egregiously, but unfortunately they remain vulnerable against such unjustifiable parasitic strains. We can spare no effort or expense in continuing our support for them," he said.

Democratic Senators Jay Rockefeller and Barbara Boxer also urged Attorney General Eric Holder and Mary Schapiro, chief of the Wall Street watchdog Securities and Exchange Commission, to see if US laws had been broken.

"The reported allegations against News Corporation are very serious, indicate a pattern of illegal activity, and involve thousands of potential victims," the lawmakers said in a letter to Holder and Schapiro.

"It is important to ensure that no United States laws were broken and no United States citizens were victimised," the senators said.

They also pointed to charges that employees of Murdoch's News Corp - a US-based firm - had bribed British police as part of the hacking scandal, saying that could violate a US law, the Foreign Corrupt Practices Act.

After decades as Britain's political kingmaker, Murdoch has seen his empire threatened by a wave of public outrage since The News of the World tabloid admitted illegally intercepting people's voice messages.

'Disgusting'

The phone-hacking row had rumbled on for months but exploded last week after it emerged that the paper had targeted the messages of Milly Dowler, a murdered 13-year-old girl, and of the families of the veterans of the wars in Afghanistan and Iraq.

Murdoch shut the 168-year-old tabloid on Sunday, and on Wednesday pulled out of the biggest media takeover bid in British history, for pay-TV giant BSkyB, before accepting to be grilled by lawmakers to try to limit the damage.

News Corp's shares have plummeted in the past week, and the Murdoch-owned Wall Street Journal reported that the media tycoon was considering selling off his remaining British newspapers, The Times, The Sunday Times and The Sun.

In the United States, Murdoch's Fox News Channel is seen by many Democrats as a tool of their Republican rivals, while the network denies any bias.

In Australia, the birthplace of Murdoch's global empire, Prime Minister Julia Gillard said on Thursday she would be open to an inquiry into media regulation and ownership after the "disgusting" scandal engulfing News Corp.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.98
-0.2%
Rand - Pound
24.14
-0.1%
Rand - Euro
20.63
-0.2%
Rand - Aus dollar
12.39
+0.2%
Rand - Yen
0.13
+0.3%
Platinum
911.84
-1.3%
Palladium
1,018.92
-4.4%
Gold
2,160.36
0.0%
Silver
25.11
+0.3%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,431
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders