I failed: Rupert Murdoch

Rupert Murdoch told a British media-ethics inquiry that he 'failed' to prevent the phone-hacking scandal that derailed News Corp. (NWSA)'s bid for British Sky Broadcasting Group Plc. (BSY)

Senior executives at News Corp. were never informed by lower- ranking officials at the UK unit about the extent to which reporters accessed voice mails for stories, the 81-year-old News Corp. chairman told the inquiry.

“I have to admit that some newspapers are closer to my heart than others,” Murdoch said on his second day of testimony today. “I also have to say that I failed,” said Murdoch.

The inquiry began last year after evidence emerged that voice-mail interceptions by the News of the World tabloid were rampant and police opened probes into bribery and computer hacking by journalists at its other UK titles. During testimony earlier this week, Murdoch’s son, News Corp. deputy chief operating officer James Murdoch, blamed his underlings for failing to contain the scandal.

“The senior executives were misinformed and shielded from anything that was going on,” Rupert Murdoch said. “Maybe even the editor, but certainly below that, someone took charge of a cover-up which we were victim to.”

The phone-hacking revelations, including the fact that the News of the World hacked the phone of a murdered school girl, ended the company’s 7.8 billion-pound ($12.6 billion) bid for BSkyB, he said.

He said he never discussed proposed takeover with the UK Cabinet members tasked with approving the deal. He said he never talked about the bid with Business Secretary Vince Cable, who was opposed to the deal, or Culture Secretary Jeremy Hunt, who took over responsibility for the government’s decision after Cable’s personal views were exposed by undercover reporters.

“I don’t remember my exact feelings then,” Murdoch said when asked about the perceived delay in approving the deal when it was under Cable’s review. “This was a very big move for our company, but I was a lot more concerned in 2011 about the unfolding hacking scandal.”

The inquiry, led by Judge Brian Leveson, began last year after evidence emerged that phone hacking at the company’s News of the World tabloid was rampant and police opened probes into bribery and computer hacking by journalists at News Corp.’s other UK titles. About 45 people have been arrested, including former News Corp. journalists, and the company closed the News of the World in July in response to public outrage over the scandal.

Murdoch told the inquiry in testimony yesterday that he had never sought favors from any prime ministers and that News Corp. doesn’t consider business needs when deciding which politicians to support in its newspapers.

Murdoch said it was a coincidence News Corp. revealed its plan to take over the UK’s biggest pay-television provider a month after Cameron was elected. Murdoch said he never discussed the bid with Cameron during their meetings, including a 2008 visit by the politician to the executive’s yacht and tea at the prime minister’s residence after he was elected.

James Murdoch gave the inquiry details Aug. 24 on the company’s interaction with lawmakers as it sought to buy the 61 percent of BSkyB it didn’t already own. The testimony led to the resignation of Adam Smith, an adviser to Hunt, who had leaked information about the government’s deliberations to News Corp.’s UK unit, News International.