Hacking scandal claims two more

LONDON – An intensifying voicemail hacking and police bribery scandal cut closer than ever to Rupert Murdoch and Scotland Yard on Sunday with the arrest of the media magnate’s former British newspaper chief and the resignation of London’s police commissioner.

Though the former executive, Rebekah Brooks, and the police chief, Paul Stephenson, have denied wrongdoing, both developments are ominous not only for Murdoch’s News Corp., but for a British power structure that nurtured a cozy relationship with his papers for years.

Brooks, the ultimate social and political insider, dined at Christmas with Prime Minister David Cameron, whose Conservative-led government is now facing increasing questions about its relationship with Murdoch’s media empire.

The arrest of the 43-year-old Brooks, often described as a surrogate daughter to the 80-year-old Murdoch, brought the British police investigations into the media baron’s inner circle for the first time. She was questioned and released on bail some 12 hours later, Scotland Yard announced early today.

Until her resignation Friday, Brooks was the defiant chief executive of News International, Murdoch’s British newspaper arm, whose News of the World tabloid stands accused of hacking into the phones of celebrities, politicians, other journalists and even murder victims. In the tumultuous past two weeks, she had kept her job even as Murdoch shut down the 168-year-old News of the World and tossed 200 other journalists out of work.

On Sunday she showed up for a prearranged meeting with London police investigating the hacking and was arrested. She was questioned on suspicion of conspiring to intercept communications – phone hacking – and on suspicion of corruption, which relates to bribing police for information.

Hours after Brooks’ arrest, Stephenson said he was resigning as commissioner of London’s force because of “speculation and accusations” about his links to Neil Wallis, a former News of the World executive editor who was arrested last week in the scandal. Wallis worked for the London police as a part-time public relations consultant for a year until September 2010.

Stephenson said he did not make the decision to hire Wallis and had no knowledge of allegations that he was linked to phone hacking, but he wanted his police force to focus on preparing for the 2012 London Olympics rather than the scandal.

“I had no knowledge of the extent of this disgraceful practice and the repugnant nature of the selection of victims that is now emerging,” Stephenson said. “I will not lose any sleep over my personal integrity.”

On Sunday, Murdoch took out full-page ads in British newspapers promising that News Corp. would make amends for the phone hacking scandal.