Murdoch Reporters Accused of Spying

U.K. Staffers Tapped Phones, Paper Says

LONDON, July 9 -- The Guardian newspaper said yesterday that reporters at Rupert Murdoch's British news subsidiary illegally tapped the phones of politicians, sports stars and celebrities.

According to the Guardian, News International, the News Corp. subsidiary that publishes the Times, the Sunday Times, the Sun, News of the World and TheLondonPaper.com, has already paid about $1.62 million in out-of-court costs to settle claims that reporters had hired private investigators to intercept private data, including voice messages, tax records, bank statements and itemized phone bills. The paper cited unnamed police sources.

Gwyneth Paltrow, George Michael, Elle MacPherson, London Mayor Boris Johnson and former deputy prime minister John Prescott were among the "several thousand public figures" who were targeted, the Guardian reported.

Murdoch, whose U.S. company owns the Wall Street Journal, Fox Broadcasting and the New York Post, told Bloomberg News: "If that had happened I would know about it."

Prime Minister Gordon Brown jumped into the fray, saying that there were "serious questions to be answered." It is a criminal offense to tap someone's phone in Britain.

In January 2007, Clive Goodman, a royal editor at the News of the World, was jailed for hacking into the cellphones of royal staff members. The Guardian says the practice was rife at the time, and indeed, many of its allegations come from that period.

Assistant Commissioner John Yates of the London police said that the allegations had been reviewed during the Goodman case and that they would not reopen the investigation.

"Their potential targets may have run into hundreds of people, but our inquiries showed that they only used the tactic against a far smaller number of individuals," Yates said in a statement. "No additional evidence has come to light since this case has concluded. I therefore consider that no further investigation is required"

However, Keir Starmer, the director of public prosecutions, said he would reexamine the claims so as to "satisfy myself and assure the public that the appropriate actions were taken."

News International said in a statement yesterday that it was prevented by "confidentiality obligations from discussing certain allegations made in the Guardian newspaper today," but added that its journalists "fully comply" with relevant legislation and industry codes of conduct.

The allegations also raise questions about Andy Coulson, who resigned as editor of News of the World over the Goodman case, and is now the director of communications for David Cameron, leader of the Conservative Party.

Mark Stephens, an expert in media law, said that the police will have to reopen their earlier investigations if one of the victims files an official complaint.

"If the police knew [someone's phone was bugged] and failed to alert them, they would be in breach of their statutory duties," he said in an interview. "There are no laughing policeman in London tonight."