Pacific Media Watch

9 November 2011

GLOBAL Murdoch phone-hacking scandal executive receives £1.7m pay-off

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Former News International chief executive Rebekah Brooks was arrested in July this year by detectives investigating the News of the World phone-hacking scandal. Photo: NYDN
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Rebecca Camber

LONDON (Daily Mail / Pacific Media Watch): Former News of the World editor Rebekah Brooks has walked away with £1.7million and a chauffeur-driven limousine in a controversial pay-off deal.

The News International former chief executive, who was arrested in July this year by detectives investigating phone hacking and illegal bungs to police, has received a bumper severance package from the newspaper group.

The 43-year-old, who resigned at the height of the phone-hacking scandal, received £1.7million in cash, the use of a London office and a company limousine and chauffeur for two years as part of the deal.

Just days after she quit, she was arrested and is still on police bail.

But News International will continue to pay for her office in an expensive central London location for another two years, raising suspicion that she will be allowed to return to the firm.

The controversial decision to give her an office is likely to come under scrutiny on Thursday when James Murdoch, the 38-year-old son of Rupert Murdoch and chairman of News International, returns to answer questions at the Commons culture, media and sport select committee about his knowledge of phone hacking.

There have been reports that Brooks, a favourite of Rupert Murdoch, was told she would one day be able to return to the company, possibly in as little as two years. Murdoch is said to have told her to ‘travel the world’ until the scandal died down.

Records at Companies House show that she has now resigned from 23 directorships related to the firm.

Labour MP Tom Watson said today: "It is remarkably curious that such a generous package is given to Mrs Brooks when others have been cut loose.

"It is almost as if she hasn’t really left the company.

"I am sure Mr Murdoch will want to explain the decision to his shareholders."

Dave Wilson, the chairman of Bell Pottinger, the public relations group hired by Brooks to deal with the fallout from her resignation, declined to comment on the confidential details of her severance package.

News International also declined to comment.

Brooks has been bailed to return in March next year.

Subsidiaries of News Corporation used to own th Fiji Times until last year and still own the PNG Post-Courier.

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Pacific Media Watch

PMC's media monitoring service

Pacific Media Watch is compiled for the Pacific Media Centre as a regional media freedom and educational resource by a network of journalists, students, stringers and commentators. (cc) Creative Commons

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