Murdoch Points Finger Over NOTW 'Cover-Up'

Rupert Murdoch has told the Leveson Inquiry there was a phone-hacking "cover-up" at the News Of The World, which was instigated by "one or two people" at the tabloid.

The News Corporation chairman was questioned about the scandal at the now-defunct Sunday tabloid during his second day of evidence at the inquiry.

Mr Murdoch has previously said he was "shocked and appalled" by the allegations and was "determined to put things right".

At the inquiry into media standards he apologised for the failings of the News Of The World (NOTW) and accepted the buck stopped with him.

The 81-year-old said he feels responsible for the hacking scandal at the newspaper, saying it was a "serious blot" on his reputation.

Mr Murdoch also said he wished he had stepped in earlier to shut the tabloid down.

Mr Murdoch said senior executives were "misinformed" about phone hacking, and had been "shielded" from what was going on.

"I do blame one or two people for that, who perhaps I shouldn't name because for all I know, they may be arrested yet," he said.

"There is no question in my mind that, maybe even the editor, but certainly beyond that, someone took charge of a cover-up which we were victim to, and I regret."

Asked by counsel to the inquiry Robert Jay QC where the "cover-up" emanated from, Mr Murdoch replied: "I think from within the News Of The World.

"There were one or two very strong characters there who I think had been there many, many years and were friends of the journalists.

"The person I am thinking of was a friend of the journalists, drinking pal, and was a clever lawyer and forbade them... or there have been statements reporting that this person forbade people to go and report to Mrs (Rebekah) Brooks or James (Murdoch).

"That is not to excuse it on our behalf at all, I take it extremely seriously that that situation had arisen."

Mr Murdoch admitted he had not paid close enough attention to the tabloid and apologised for what happened, and to the staff who lost their jobs when he closed the newspaper.

"I have to admit that some newspapers are closer to my heart than others, but I also have to say that I failed. And I am very sorry about it."

However, he also said he wishes he had closed the NOTW "years ago" and replaced it with a Sunday edition of the Sun newspaper.

Later, he said the NOTW - which, in 1969, was the first British newspaper he bought - was "an aberration, and it's my fault".

The tabloid was closed down last July after reports that the murdered teenager Milly Dowler's voicemail had been hacked.

He said when this story surfaced, it could not be ignored, and closing the tabloid down had been a very quick decision.

"(The Dowler case) made people all over the country aware of this... You could feel the blast coming in the window almost.

"And I would say it succinctly, I panicked. But I am glad I did."

On Wednesday, Mr Murdoch described his relations with senior politicians - and sparked a row over whether Gordon Brown "declared war" on News International.

The former prime minister said the "serious allegation" was "wholly wrong", and called on Mr Murdoch to "correct his account" when he resumed giving evidence.

But at the start of proceedings on Thursday, Mr Murdoch told the inquiry: "As for the conversation, which he's denied, I said that very carefully under oath, and I stand by every word of it."

Away from the inquiry, the Culture, Media and Sport committee will finally publish its long-awaited report on phone hacking on May 1.

It was due many weeks ago and the delay reflects how MPs have struggled to come to an agreement.