guardian.co.uk,
Dan Sabbagh, Tuesday 3 April 2012
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| James Murdoch: 'I am determined that the interests of BSkyB should not be undermined by matters outside its scope.' Photograph: Miguel Villagran/Getty Images |
James
Murdoch stepped down as chairman of BSkyB six weeks after giving up a similar
role at News International, saying he "could become a lightning rod"
for criticism of the satellite broadcaster, in the wake of condemnation of his
handling of the News of the World phone-hacking scandal.
The
39-year-old felt he needed to give up a position he loved to avoid the risk of
being forced to quit should he be severely criticised by a forthcoming report
from MPs into the scandal, or if he were to trip up or be reprimanded when he
gives evidence to the Leveson inquiry into press standards this month.
Writing to
the board of BSkyB, the man seen as the heir presumptive to his father Rupert
until last summer's revelations about the hacking of Milly Dowler's phone,
said: "As attention continues to be paid to past events at News
International, I am determined that the interests of BSkyB should not be
undermined by matters outside the scope of this company."
Although
Murdoch will hang on to a non-executive directorship of BSkyB, the move caps a
retreat by James to New York where he hopes to rebuild his career as News
Corporation's number three, behind his father and Chase Carey. Without the
position at BSkyB his responsibilities at News Corp for "international
television" will be reduced to pay-TV businesses in Italy and across Asia.
Allies said that by stepping aside now, it was hoped he would retain
"options" over his future.
James
Murdoch is almost certain to be criticised by MPs on the culture, media and
sport committee for not being aware that phone hacking was more widespread at
the News of the World than originally admitted. But the committee is split on
party lines over whether to accuse him of misleading parliament over what he
actually knew. Other senior colleagues of Murdoch's, including former chief
executive Rebekah Brooks and former News of the World editor Colin Myler are
expected to be criticised in the final report.
John
Whittingdale, the chair of the committee, said Murdoch's departure would not
affect the final wording in the report due at the end of April, but added:
"I think his judgment was correct; as long as he was at Sky, the problems
affecting News International would have a read across to Sky". He also
said he was surprised Murdoch was remaining as a non-executive "because
that does not sever the link between Sky and News International".
Murdoch
appeared before the committee twice, once with his father last summer, and a
second time to answer outstanding questions about what he knew at the time he
authorised a £425,000 phone-hacking settlement to football boss Gordon Taylor
in 2008. Paul Farrelly, a Labour MP on the committee, said the resignation was
not a surprise because "there are issues that News Corporation and BSkyB
has to confront, namely was there a cover-up of what happened on James
Murdoch's watch at News International?".
By stepping
down, it will mean that no Murdoch occupies a top position at the satellite
broadcaster for the first time since 1999. James Murdoch, who had been
appointed chief executive of BSkyB in 2003, aged 31, succeeded his father
Rupert as chairman in 2007, in a business that was created in the early 1990s
when Rupert Murdoch's Sky merged with rival BSB to leave News Corp as the
largest single shareholder. James Murdoch served as BSkyB chairman at the same
time as he was executive chairman of News International, during the period when
the News of the World owner denied that it was behind widespread phone hacking
when allegations surfaced in 2009.
James
Murdoch's departure was greeted with an unprecedented joint statement from his
father Rupert and Carey, the chief operating officer. The two said: "We
are grateful for James Murdoch's successful leadership of BSkyB.
"He
has played a major role in propelling the company into the market-leading
position it enjoys today – and in the process has been instrumental in creating
substantial value for News Corporation shareholders."
The Labour
leader Ed Miliband said that the allegations surrounding Murdoch-owned
companies in the UK go "beyond one person" and News Corp needed to
conduct a "clear-out of those people that did wrong". His deputy
Harriet Harman used the latest resignation to harden up her party's position on
media owernship.
Harman
said: "Murdoch owns too many newspapers. Never again must we allow any
individual or organisation to acquire such a concentration of power when it
comes to media ownership."
James
Murdoch will be replaced as chairman by private equity boss Nicholas Ferguson
but, by remaining on the board, he continues to be a focus of a "fit and
proper" test being conducted by Ofcom in response to the News of the World
phone-hacking scandal.
Ofcom is
examining whether Murdoch and News Corporation – a 39.1% shareholder in BSkyB –
are suitable directors and owners in the wake of phone-hacking and other
allegations of corrupt payments and pay-TV hacking made in recent weeks. News
International chief executive Tom Mockridge also joined the board of BSkyB as
deputy chairman.
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