James Murdoch and the BSkyB board were warned “a number of months ago” about evidence of illegal email hacking at Sky News but did not make a public announcement because they said the police had already been informed, senior sources at the broadcaster have disclosed.
Sky News, owned and operated by BSkyB, admitted last week that a reporter had been authorised to hack emails in two cases. The channel defended its actions saying the information was “in the public interest”.
One instance involved an investigation into John Darwin, the “canoe man” who faked his death and fled to Panama in 2002. BSkyB’s admission came two days after James Murdoch stepped down as chairman, leading to accusations that the two events were linked. BSkyB said that was not the case.
Some News Corp investors are said to be concerned that the hacking contagion could spread to BSkyB from News International. One close observer said it would have been better if BSkyB had made the announcement about the hacking when the board was first told. BSkyB has launched a wider inquiry into operations at Sky News and has said it has found no evidence of wrong-doing.
John Ryley, the head of Sky News, said the actions were “editorially justified” and involved suspected crimes. In the case of Anne Darwin (John Darwin’s wife, who was convicted of fraud), emails were handed to the police.
Police are now looking into the hacked emails. The Sky News executive who gave the authorisation, Simon Cole, has now taken early retirement although BSkyB said the two matters were not connected.
Nicholas Ferguson, the new chairman of BSkyB, is likely to be in position for “a number of years” according to those close to him.
There had been speculation that his would be an interim appointment until the board found a chairman who could reassure investors he was independent of News Corp, which owns 39pc of BSkyB.
Mr Ferguson has been on the BSkyB board since 2004 and is a firm supporter of Mr Murdoch. Tom Mockridge, the CEO of News International, which is owned by News Corp, is now BSkyB’s deputy chairman.
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