Posts Tagged ‘Press Gang’

PORRIDGE

February 11, 2017

corrupt_header_porridge3

BY THE late 1990s Scotland Yard had made no progress in catching the men who butchered private detective Daniel Morgan in 1987.

Then in 1998 anti-corruption detectives — worried that bent policemen were selling sensitive information to the detective agency Southern Investigations  — installed a bug in the firm’s offices.

Southern’s owners — murder suspect Jonathan Rees and retired police sergeant Sid Fillery — had no idea they were under surveillance.

REES_and_FILLERY_210

THE STORY SO FAR …
PRIVATE EYE Jonathan Rees (left) should have been a prime suspect in the murder of his partner Daniel Morgan in 1987 — the two men were love rivals and were arguing about a botched security operation arranged by Rees. But Scotland Yard detective sergeant Sid Fillery (right) kept that crucial information from the murder squad for four days. For the events leading up to the murder, the early contaminated murder inquiry, the sensational inquest which saw Rees’s book-keeper accuse him of planning the murder, see Part One — An Axe To Grind. The second part of The No 1 Corrupt Detective Agency — Rogue Journalists & Bent Coppers — reveals how Rees and his new partner Fillery became key players in the unlawful sale of confidential police information to Rupert Murdoch’s empire, especially the News of the World. Attempts by anti-corruption detectives to end this corrosive trade came to nothing.
Photos: PA

Detectives listened as Rees hatched a conspiracy with serving Scotland Yard detectives to plant drugs on an innocent woman.

The plotters were caught red-handed and Rees was gaoled for 7 years.

But the bug picked up no clues about the murder.

Pressure from Daniel Morgan’s family finally forced the Met to open a new murder inquiry in 2002.

It started with a dramatic BBC Crimewatch reconstruction.

Instantly Rees — from prison — and Fillery started a campaign to subvert this new inquiry.

They targeted the family of the detective in charge — hacked his personal records and had him followed.

Scotland Yard hit back — they raided Southern Investigations and found extreme child pornography on Sid Fillery’s computer.

He was convicted and ordered to sign the Sex Offender’s Register.

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THIS ARTICLE is the third instalment of an investigation that started more than a decade ago.
For 30 years the Daniel Morgan murder was largely ignored by the UK newspapers and broadcasters.
In part, this was because the News of the World was in a commercial relationship with Southern Investigations.
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With Rees in prison and Fillery disgraced, Southern Investigations finally came to an  end.

But the Morgan family’s battle to bring Daniel’s killers to justice ploughed on …

♦♦♦

IN 1999 detectives listening to the bug planted in the offices of Southern Investigations began to hear a plot unfold. 

A London businessman, Simon Jones, came to see if the agency could help him win a custody battle with his wife.

James asked Jonathan Rees to see if there was any evidence that his wife was involved in drugs.

It would help him get sole custody of the couple’s little boy.

Rees could find no evidence that his wife Kim was dealing in drugs.

In a bugged conversation, he hinted that he might be able to do something:

Rees  “I just wondered…  We can do things.”

James  “I’m not being funny. I’d rather you talk to me straight.”

Rees  “I just wondered if it might be worthwhile, going in and planting some gear. Now, having said that it’s done, it’s available, but it costs.”

James  “I’m not averse to doing anything.”

Rees  “What we are doing is fraught … Me and you could end up doing porridge as well, if we get caught out.”

SIMON_JAMES_200

SIMON JAMES
A POLICE surveillance photograph taken while the self-employed jeweller was plotting to gain custody of his son by planting drugs on the mother. Jonathan Rees was prepared to send an innocent woman to prison to satisfy his client …
Photo: Press Association.

James  “Yeah, I mean, you’re professionals. That’s why I have come here…”

Rees  “All right, I’ll have a chat to our people today.”

Three days later, James returned to the office with £7,500 — some of which was used to buy cocaine.

As the plot to frame the innocent woman got underway, anti-corruption officers were watching every move.

They were about to catch the plotters red-handed.

A man called Jimmy Cook, who worked for Southern Investigations, broke into Kim James’ car and planted bags of cocaine.

Undercover officers were waiting and, as soon as Cook was out of the way, removed the cocaine and replaced it with packets of harmless powder.

Another contact, a corrupt detective constable called Austin Warnes, tipped off the police that Kim James was dealing in drugs.

She was raided and a suspicious package found in her car.

She was arrested.

The police pounced on the conspirators.

They arrested Rees, Simon James and Austin Warnes.

Austin Warnes was gaoled for five years for his part in the plot.

Rees got seven years — as did the businessman Simon James.

One of those acquitted in the case was Jimmy Cook, the Southern Investigations employee who would later be charged with being the getaway driver in the Daniel Morgan murder.

AUSTIN_WARNES_200

ANOTHER BENT COPPER
CORRUPT DETECTIVE Austin Warnes. He pretended he had intelligence that Simon James’ wife was dealing in drugs …
Photo: Press Association

♦♦♦

IN 2002 detective chief superintendent Dave Cook of Scotland Yard’s murder squad was approached by anti-corruption detectives.

They wanted him to do them a favour.

They had decided to try and break the stalemate in the Daniel Morgan murder investigation.

They wanted the BBC Crimewatch programme to highlight the murder with the Metropolitan Police offering a £50,000 reward for information.

Their problem was that they didn’t want Rees and Fillery to know that it was the anti-corruption team who were in charge.

Would Cook appear on the programme to give the impression that he was heading up the inquiry?

Cook was an ideal candidate because his wife, policewoman Jacqui Hames, acted as a presenter on the porgramme.

Cook agreed.

On 26 June 2002 he appeared on the programme to appeal for witnesses to the murder.

The next day, Cook was told by anti-corruption officers that Sid Fillery had been in touch with reporter Alex Marunchak at the News of the World asking him to “sort out” the detective.

(At the time, Rees was still in prison for the Simon James conspiracy, although he was still in touch with both Fillery and Marunchak).

Shortly afterwards Cook spotted a white van outside his house.

The next day there were two.

When Cook took his young son to nursery, the vans followed.

Cook later arranged for police to stop one of the vans on the grounds that a rear light was defective.

The driver turned out to be a photojournalist working for the News of the World.

Both vans were leased by the newspaper.

Cook’s wife, Jacqui Hames, told witness protection officers that she had been photographed outside the couple’s home.

The couple were later told that the Met’s media boss Dick Fedorcio contacted the News of the World.

Fedorcio was told that the paper had been tipped off that Cook was having an affair with the Crimewatch presenter.

dave_cook_200

DAVE COOK
THE EXPERIENCED murder squad detective was disturbed when he and his wife were placed under surveillance by the News of the World as soon as he appeared on the BBC Crimewatch programme. Murder suspect Jonathan Rees had asked his friends on the paper to target the chief superintendant … 
Photo: Press Association. 

This was an incredible answer.

Cook and Hames were married, had two children and had been featured as a couple in Hello! magazine.

The surveillance ceased.

A few days later Cook was told by Surrey Police, where he worked from 1996 to 2001, that someone had rung asking for his address.

The caller said they were working for the Inland Revenue and wanted it to send Cook a tax refund.

Surrey Police refused to give it.

Later in 2002, anti-corruption officers raided the offices of Southern Investigations.

At this point, Jonathan Rees was still in prison.

On Sid Fillery’s computer officers found indecent images of young children.

In October 2003 Bow Street Magistrates gave him a three year community rehabilitation order.

District Judge Caroline Tibbs said she’d taken into account his guilty plea and what his defence claimed was his previous good behaviour.

The court was told nothing about his role in the Daniel Morgan murder case.

After the conviction, the detective agency collapsed.

Fillery went to live on the Norfolk Broads, running a pub called the Lion at Thurne.

It later became clear that Glen Mulcaire — the private eye gaoled in 2007 with News of the World royal correspondent Clive Goodman for hacking into royal mobiles — obtained Cook’s address, his internal Met payroll number and the amount he and his wife were paying on their mortgage.

Phone hacking claims

REBEKAH BROOKS
THE EDITOR of the News of the World when the paper mounted a surveillance operation against Dave Cook, Rebekah Brooks was untroubled that the paper was allowing itself to be used to pervert the course of justice …
Photo: PA 

Mulcaire also obtained the mobile number for Cook’s wife as well as the password she used.

Mulcaire was apparently acting on the instructions of Greg Miskiw, the News of the World assistant editor at the time.

On 9 January 2003 Rebekah Brooks was at Scotland Yard on a social visit when she was asked to have a word with Dave Cook “to clear the air”.

Present at the meeting was the Yard’s media boss Dick Fedorcio.

By that time, Cook was in charge of the latest Daniel Morgan murder investigation.

At first Brooks claimed to know nothing about the surveillance of Cook and his wife.

When Cook took her through the events, she insisted Marunchak was a fine reporter.

She promised to look into the matter.

We asked Dave Cook [in September 2011] to be interviewed for this article.

He declined.

The Met Commissioner at the time of Cook’s meeting with Brooks was Sir John Stevens.

He’s known to have dined regularly with Rebekah Brooks and Andy Coulson.

After he left the Met he was commissioned by Coulson to write a column for the News of the World — called “The Chief”.

♦♦♦

EVER SINCE the phone hacking scandal destroyed the reputation of the News of the World, Alastair Morgan has been thinking about the surveillance operation the paper mounted against detective superintendent Dave Cook and his then wife in 2002.

He believes it was an attempt to intimidate the detective.

Morgan believes that a similar operation was mounted against him and his family in May 1998.

The family were campaigning for a public inquiry into the events surrounding Daniel’s death.

morgan_family_400

THE MORGAN FAMILY
HIS MOTHER Isobel, sister Jane and brother Alastair have been relentless in their campaign to bring Daniel’s killers to justice.
Photo: PA

“I was living in Glasgow,” Alastair Morgan explains, “and one night I noticed two men standing openly on the corner of the street where my flat was located.”

“The next day they were there again. I was sure they were watching me — they made absolutely no attempt to conceal themselves.”

“I rang my mother Isobel who lives in Wales and told her.”

“She then told me that she’d also had a strange encounter — she was just going into her house when a woman photographer walked up behind her and took a couple of photographs.”

“She didn’t say anything — just got into a car which drove off.”

“And when I told my sister Jane, who lives in Germany, she said that she’d seen a white van parked outside her home in the countryside.”

“A man was lying in a ditch with a telephoto lens pointed at her home.”

“All of these incidents were reported to the police — in Scotland, Wales and Germany. We were all worried.”

Alastair Morgan told us:

“I have written to James Murdoch at News International to ask him to tell us if it was the News of the World who were watching us. And, if they were, what exactly was the justification for the intrusion.”

He had not received a reply by the time this article went to press.

We asked News International for a response but the press office told us:

“NI declines to comment”.

♦♦♦

THE FINAL instalment of The No 1 Corrupt Detective Agency — Getting Away With Murder — will cover the events that followed Jonathan Rees’ release from prison in 2004.

His criminal record was no barrier to his continued working for the News of the World.

But police were closing in.

In 2008 he — and four others — were arrested and charged with involvement in the murder.

By 2011 the prosecution decided to offer no evidence.

The evidence of three supergrasses — “assisting offenders” is the official term — was discredited.

And police failed to disclose some of the 750,ooo pages of documents to the defence.

But the judge, David Maddison, made it clear police “had ample grounds to justify the arrest and prosecution of the defendants.”

That has not stopped four of them bringing a civil action for malicious prosecution and malfeasance in public office.

This is on-going.

At the same time a review of the scandal headed by Baroness Nuala O’Loan is preparing its report.

Set up in 2013 by then Home Secretary Theresa May, its hearings were held in secret.

♦♦♦
Re-published: 11 February 2017
© Press Gang
♦♦♦

Notes
1.
This article is part of a series first published on the Rebecca Television website in September 2011.
Rees and Fillery were sent letters outlining the article and asking for their comments. 
Fillery never replied but Rees’ solicitor said:
“Mr Rees has not the spare time to reply to the many questions that have been raised, often on the basis of ill-informed or malicious allegations.”
“Defamation claims are being pursued … in respect of some past publications; and the police have been asked to investigate any use by journalists or others of confidential or forged material improperly released by police officers or others.” 
No legal action was taken against Rebecca Television.
2.
There are four parts to The No 1 Corrupt Detective Agency: Click on the title to read.
An Axe To Grind
Rogue Journalists & Bent Coppers
Porridge
Getting Away With Murder.
3.
The series draws on material provided by the Morgan family as well as published material by other journalists, notably Nick Davies of the Guardian. Former BBC reporter Graeme McLagan devoted a detailed chapter on the murder as early as 2003 in his book Bent Coppers: The Inside Story of Scotland Yard’s Battle Againats Police Corruption (Orion). It also featured in Laurie Flynn & Michael Gillard’s Untouchables: Dirty Cops, Bent Justice and Racism In Scotland Yard (Cutting Edge, 2004). Several books on the phone hacking scandal have highlighted the key role the murder plays in the saga: Nick Davies’ Hack Attack (Chatto & Windus, 2014) , Tom Watson MP & Martin Hickman’s Dial M For Murdoch (Allen Lane, 2012) and Peter Jukes’ The Fall Of The House Of Murdoch (Unbound, 2012). Peter Jukes has also produced a podcast series — listened to by more than 4 million people — Untold: The Daniel Morgan Murder 
4.
Press Gang editor Paddy French made several programmes on the murder while a current affairs producer at ITV Wales. 

♦♦♦

COMING
SKY FALL?
THIS YEAR will see a major battle for control of Britain’s airwaves — Rupert Murdoch’s bid to take overall control of Sky TV. The mogul scuttled an earlier attempt in 2012 because of the public outcry over the phone hacking scandal. The battle for Sky will be a key battleground in 21st century British media because of the decline in newspapers. If Murdoch gets Sky, he will move to smash the powerful broadcasting watchdog, Ofcom, and convert Sky News into a British version of his US Fox News. This is part of a plan to replace the fading populist power of the Sun with a new right-wing  TV version. All the signs are Theresa May’s government will give Rupert Murdoch what he wants. But all is not lost — the Murdochs are vulnerable to a charge that, despite claims to have cleaned up their criminal stable since the closure of the News of the World in 2012, some areas of their empire remain as corrupt as ever …

♦♦♦

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CITIZEN SMITH

September 7, 2016

 

Owen_Smith_head_citizen

ONE OF the most common criticisms of Jeremy Corbyn is that he’s unelectable.

Critics point to the poll ratings, with Labour currently trailing the Tories.

But little attention has been paid to challenger Owen Smith’s electoral record.

In the past decade he and his wife have stood in four elections — all in traditional Labour strongholds.

They’ve lost two of them.

Even when Owen Smith wins, he does so with a reduced majority.

Some voters are not impressed with his style: he was nicknamed “Oily” in one election and arrogant in another.

Is there something toxic about “brand Smith”?

♦♦♦

THREE YEARS ago Owen Smith was the driving force behind a political manifesto.

He co-edited a series of essays called One Nation: power, hope, community.

The Guardian said:

” … a group of the party’s rising stars call for it to end the lockout of local communities from power and to bury top-down statist solutions that have failed in the past.”

It was a time when Labour was searching for a way to appeal to the middle ground of British politics.

Labour Leader Ed Miliband summed it up in the preface:

“… a One Nation Labour Party is a party of the national interest, not one part of the country or any sectional interest.”

In the opening chapter Owen Smith was candid about the problems he faced in his own constituency, Pontypridd in south Wales.

“Membership and majorities are counted carefully now, when once they were weighed. Belief in our mission is dwindling.”

He was also clear about the solution:

“I believe the answer comes in two parts: we need both bottom-up participation and leadership from the top; to simultaneously cultivate our roots and command the heights.”

But he admits his attempt to regenerate Labour grass-roots in Pontypridd isn’t working:

“ … in the three years since I was elected the means to galvanise that engagement has proved elusive and frustrating.”

“This is undoubtedly partly a result of the many previous false dawns that have promised progress but failed to deliver: it’s hard to feel progressive when there seems so little sign of progress for you and yours.”

But he was still confident things could be turned around.

“Slowly but surely, Labour is re-engaging with dialogue in our communities, and developing new common objectives and solutions that will prove the real foundations for our rebuilding.”

Part of the strategy was a move to bring greater democracy to the party:

“Iain McNicol [Labour’s General Secretary] has been leading reforms in the party aimed at building a more open and inclusive movement.”

Labour leadership challenge
BACK TO THE FUTURE?  
THREE YEARS ago Owen Smith was praising Labour for “… leading reforms in the party aimed at building a more open and inclusive movement.” But it was not until Jeremy Corbyn stood for leader that membership began to rocket — from under 300,000 to more than 500,000. Ironically, the party’s National Executive Committee have now barred some 130,000 recently joined members — most of them believed to be Corbyn supporters — from voting in the leadership election.
Photo: Ben Birchall / PA

In Pontypridd Smith thought he’d found a way to galvanise the community:

“Pontypridd Citizens, which will bring together churches and parties, unions and residents, in order to determine local needs and empower local leaders, is launching this year, taking its cue and its form from similar schemes that are energising communities across Britain.”

“It will mark a new beginning in the politics of Pontypridd, and Labour will be at its heart.”

The organisation should be three years old by now.

But Press Gang could find no evidence of Pontypridd Citizens — and when we asked people in the constituency, no-one had never heard of it.

We asked Owen Smith for an explanation.

He didn’t reply.

♦♦♦

WHEN OWEN SMITH was chosen to be the Labour candidate for the 2006 Blaenau Gwent election, he had no experience of grass-roots politics. 

The seat had a troubled past but the party was expecting it to revert to being a Labour stronghold.

Owen Smith probably thought he had a safe seat for the rest of his political career.

In 2005 popular local politician Peter Law stood as an independent.

A former Labour member of the Welsh Assembly, he’d been barred from standing as a candidate for the general election because the party had imposed an all-woman short-list.

Labour nominated trade union leader Maggie Jones.

Many Labour voters deserted the official candidate and chose the independent.

But Law — already diagnosed with brain cancer — died the following year.

His agent, Dai Davies, decided to stand in the by-election that followed.

Labour strategists felt Law’s death had taken the sting out of the rebellion — and that the faithful would return to the fold.

In the early days of the campaign a poll gave Owen a massive 12 per cent lead.

Labour mounted a huge campaign to retake the seat — spending £56,000 to Davies’ £7,000.

But Smith’s organisation was cack-handed.

Telephone canvassers angered voters when they began calling within days of Law’s death.

Activists were bussed in from all over Britain but they knew nothing about Blaenau Gwent.

Smith himself acquired the nickname “Oily”.

Dai Davies was a well-known political figure who outgunned Smith on many fronts.

One of them was Nye Bevan, the political midwife of the NHS, whose old Tredegar constituency was now part of Blaenau Gwent

Smith claimed Nye Bevan as his hero.

But Dai Davies could trump that.

He was a trustee of the Bevan Foundation, a left-wing think tank formed in his memory.

Smith did not become a trustee of the Foundation until after the by-election.

The result was Dai Davies won a narrow victory — by just 2,488 just votes.

It was a bruising experience for Smith and he decided not to seek the nomination again.

Labour regained the seat in 2010.

♦♦♦

THE LIKELIHOOD is that plans were already afoot to shoehorn Owen Smith into the Pontypridd constituency.

Just before Christmas 2009 the sitting MP, Kim Howells, announced he was standing down as the MP.

Soon after, there were press reports that Owen Smith was ringing members of the constituency Labour Party to make his pitch to replace Howells.

Howells is, of course, an old friend of Owen Smith’s father, Dai Smith but Owen Smith denies that the Howells played any part in his selection.

Smith gained the nomination.

IMG_1090
NEPOTISM HOUSE?
OWEN SMITH’S home in his Pontypridd constituency has an intriguing past. Shortly after he was elected in 2010, the MP paid £285,000 for the north wing of the listed building in Llantrisant. It was previously owned by the sister of former BBC boss Menna Richards who bought the property shortly after she formed an independent production company. She won millions of pounds worth of contracts from the Corporation. It was under Menna Richards that Owen Smith made his breakthrough into television — as producer of the politics series Dragon’s Eye in 2000.
Photo: Press Gang

In Pontypridd Labour was united — but there were other problems.

The Lib Dems, led by Nick Clegg, were riding high in the polls — and they had a well-known local candidate in Mike Powell.

When Labour councillor Glynne Holmes had his picture taken with Powell as part of a campaign to save the Post Office in Llantrisant, he found himself the subject of a disciplinary hearing.

He was cleared but it was a sign of how anxious Labour officials were.

In the end, Smith won by just 2,791 votes.

The Western Mail noted:

“There were relieved faces as Labour held on to the Pontypridd seat.”

Smith polled 14,200 votes — a drop of more than 6,000 on Howells’ figure in 2005.

In the 2015 election, when Lib Dem support collapsed, Smith was able to clawback less than 1,400 of the lost votes.

In the ten years from 2005 to 2015, Labour has lost a quarter of its support in Pontypridd.

♦♦♦

EARLY THIS year Owen Smith’s wife, primary school teacher Liz, decided to stand for election to the Llantrisant town council.

There was a vacancy in the Llantrisant ward where she and Owen Smith had lived for five years.

The Labour Party ticket plus the fact that her husband was the MP were expected to secure her election.

But there was another candidate who was far more active in the town.

Louisa Mills, an independent, had started a local charity and was campaigning for a community garden.

She beat Liz Smith by 320 votes to 273.

Owen Smith may not have been as asset in the poll.

Some residents find him arrogant.

One said:

“He’s risen quickly … due to his PR skills and actually believes his own hype.”

“In my view he cares more about power than he does about using that power to help people.

All of this means Owen Smith and his wife have now contested four elections between them.

They’ve lost two.

In the two elections Owen Smith has won, he has presided over a decline in the Labour vote.

What will happen when the right-wing press goes to work on him?

♦♦♦
Published: 7 September 2016
© Press Gang
♦♦♦

Notes
1
The statistics for Owen Smith’s Pontypridd constituency make disturbing reading for Labour. These are are the number of votes cast for Owen Smith’s predecessor Kim Howells and the share of the poll:
1989   20,500   53%
1992   29,700   61%
1997   29,290   64%
2001   23,000   60%
2005   20,900   53%
From a peak of 64% of the vote in 1997 — the landslide year when Tony Blair became Prime Minister — it was down to 53% by 2005.
Owen Smith hasn’t arrested the decline. The result for the two elections he’s fought are:
2010   14,200   39%
2015   15,600   41%
In the face of a Lib Dem resurgence in 2010 he was lucky to hold on to the seat. And even with the collapse of the Lib Dems in 2015 he was able to retrieve only a small proportion of the Labour vote he’d lost in 2010.
2
This the fourth instalment of this investigation. The other articles are:
Owen Smith: Forged By Patronage and Nepotism?
Owen Smith: A Man For All Seasons
BBC Forced To Correct Owen Smith Profile.
Click on a title to read it.
3
Press Gang editor Paddy French declares personal interests in this story:
— in the 1980s he was the editor of Rebecca magazine which was in competition for a substantial Welsh Arts Council grant. One of the competitors was Arcade magazine and Dai Smith, Owen Smith’s father, was one of its supporters. The council’s literature committee chose Rebecca but the full council overturned the decision — and gave the grant to Arcade
— French is one of the thousands of traditional Labour voters who have joined the party following Jeremy Corbyn’s election as Leader. He will be voting for Corbyn in the Leadership election.
4
The Rebecca investigation into nepotism and patronage at BBC Wales is explored in the articles:
The Son Of The Man From Uncle
In The Name Of The Father?
5
The cover block pic is by Gareth Fuller / PA.

♦♦♦

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EXCLUSIVE — OWEN SMITH: A MAN FOR ALL SEASONS

August 8, 2016

 Owen_Smith_head_seasons

THE BATTLE for the Labour leadership is in full swing.

But so far the personal integrity of Owen Smith has not been an issue in the campaign.

The mainstream media have accepted his own sanitized version of his career.

The result is that it has largely been left to Press Gang to ask the searching questions about Owen Smith.

He still declines to provide the detailed CV we’ve asked for.

But, after some delay, he’s finally started to answer some of our questions.

He denies that nepotism and patronage in South Wales played any part in his rise to become a possible future Prime Minister.

But some of his answers are unconvincing.

And more questions are emerging …

♦♦♦

SEVEN HOURS after Press Gang published the article “Owen Smith: Forged by Patronage and Nepotism?” the Labour leadership candidate finally answered some of our questions.

His press team told us on Wednesday:

“The suggestion that Owen received any of his roles through patronage are (sic) completely false.”

A spokesperson said Owen Smith had forwarded our questions to Nick Evans, the senior BBC Wales radio producer who first hired him.

Nick Evans then sent us two emails.

Labour leadership challenge
LEFT — AND LEFT AGAIN?
JEREMY CORBYN and Owen Smith at the first public hustings of the leadership campaign in Cardiff on Thursday night. The British media have concentrated most of its forensic firepower on Jeremy Corbyn and have largely taken the challenger at face value. Press Gang is one of the few investigative outlets examining Owen Smith’s career in detail.
Photo: PA

In the first, Evans said it was Owen Smith who first approached him for work.

In his second, he gave a different version: Owen Smith had come into BBC Wales with his father and it was Evans who offered him work.

We asked Owen Smith about this contradiction.

His press team replied:

“Owen’s appointment followed casual work he had gained at BBC Wales, after contacting Nick directly, … without any input from his father.”

The press team also forwarded our questions to the man who was BBC Wales’ head of human relations at the time, Keith Rawlings, adding:

” … he would be able to confirm all of your allegations are completely false.”

“Keith sat on the interview panel alongside Nick [Evans] when Owen was originally interviewed.”

Press Gang rang Keith Rawlings.

He told us he wasn’t on the interview panel when Owen Smith was originally appointed.

He said the first he knew of Owen Smith was much later, after Dai Smith had been appointed Editor, Radio Wales.

In other words, Rawlings knew nothing about how Owen Smith was first introduced to Radio Wales …

♦♦♦

HAVE THE BBC been complicit in Owen Smith’s attempts to avoid questions about nepotism and patronage?

Two days after Owen Smith became the sole challenger to Jeremy Corbyn, the BBC political reporter Brian Wheeler posted a profile of the candidate headed “The Owen Smith story”.

This article set the tone for much of the general media treatment of Owen Smith’s early BBC career.

It contained this paragraph:

“After studying history and French at the University of Sussex, he joined BBC Wales as a radio producer. His father, Dai, was appointed editor of BBC Wales and head of programmes in the same year.”

By focusing on the actual appointments of Owen Smith to a post on Radio Wales and Dai Smith as Editor of Radio Wales, it gave the impression that Owen was already at the BBC when his father was picked to be the next Editor of Radio Wales.

It failed to say that Dai Smith had already introduced Owen before either appointment took place.

DaiSmith_35
DAI SMITH
OWEN SMITH’S father has been an important figure in Welsh public life for decades. He was the second most powerful man at BBC in the late 1990s and close to the clique that controlled broadcasting at that time. As one of the main historians of the south Wales miners, he’s also close to some of the key political figures in Welsh Labour. Owen Smith insists his father played no part in his career …
Photo: Parthian Books 

Given that the information in this article could only have come from one of two places — the BBC itself or Owen Smith — it raises the question of bias.

On Thursday Press Gang editor Paddy French wrote to BBC Director General Lord (Tony) Hall.

The email said there were several errors in the paragraph’s second sentence:

“His father, Dai, was appointed editor of BBC Wales and head of programmes in the same year.”

French noted:

” — there has never been an Editor of BBC Wales. The post being referred to here is Editor, Radio Wales.”

” — there is an issue about the date of [Dai’s] appointment: former BBC Wales contacts tell me this was actually 1993, not 1992.”

” — Dai Smith was not appointed head of programmes in the same year: that actually happened, as I understand it, in 1994.”

The Press Gang editor added:

“I am also concerned at the possibility that this paragraph was a deliberate red herring, designed to deflect attention away from the question about how Owen Smith was introduced to BBC Wales in the first place.”

“Given the sensitivity that surrounds the Corbyn-Smith contest for the Labour leadership, this article also raises questions about BBC impartiality.”

A spokeswoman for Tony Hall acknowledged receipt of the email but, at the time this article went to press, there was no reply.

♦♦♦

OTHER SERIOUS challenges to Owen Smith’s reputation for honesty are beginning to emerge.

In 2002 he left BBC Wales and took a post as special adviser to Labour Cabinet Minister Paul Murphy, the MP for the Welsh constituency of Torfaen.

Owen Smith insists his family connections played no part in this appointment.

His press team told us:

“With regards to Owen’s appointment with Paul Murphy — again Dai [Smith] had absolutely no involvement.”

“Dai did not even know Paul Murphy at all, until after Owen began working for him.”

Paul Murphy also denied that Dai was involved in the appointment but wouldn’t explain how Owen Smith came to be selected.

Murphy told us:

“He came from BBC Wales, although I knew his father through Welsh Labour history circles.”

In 2005 Owen Smith joined the controversial US pharmaceutical company Pfizer.

His exact role is not clear — one press report said he was Head of Policy and Government Relations.

We asked Pfizer for more information.

The company told us:

“We are unable to discuss the details of individuals’ roles; however, we can confirm that Owen Smith was employed by Pfizer UK in our Corporate Affairs Department between January 2005 and September 2008.”

The job involved a substantial increase in salary.

Owen Smith moved his family from London down to a £489,000 house in the Surrey village of Westcott near Dorking.

In 2006 Pfizer allowed him time off work to contest the Blaenau Gwent by-election.

Owen Smith said the company had been “extremely supportive” of his aspirations to public office.

But the fact that Labour had selected a lobbyist for the pharmaceutical giant was not popular in a seat which included Nye Bevan’s old powerbase.

Labour party annual conference 2015
“DRUG PUSHER”
WHEN OWEN SMITH was selected as the candidate for the by-election in Blaenau Gwent in 2006, there was concern that he was a lobbyist for a pharmaceutical company — Labour MP Paul Flynn called him a “drug pusher”.  In the general election of 2005 local politician Peter Law had left the party in protest at the imposition of an all-woman shortlist and captured the seat as an independent. He died of a brain tumour a year later and Labour, dropping its all-woman shortlist, selected Owen Smith. The party confidently expected to regain the seat and spent more than £56,000 on the campaign, including holiday accommodation outside the constituency for party activists drawn in from all over Britain. Dai Davies, Law’s agent, spent less than £7,000 on his campaign but still managed to beat Smith with a majority of 2,484 votes.
Photo: PA 

Newport Labour MP Paul Flynn said:

“I wasn’t too pleased that we had a drug pusher as a candidate.

He added:

“The lobbyists are a curse, a cancer in the system. It’s insidious. One of my main interests in politics is areas in which lobbyists used their wicked wiles to get access to government. One example is the pharmaceutical industry, who are the most greedy and deceitful organisations we have to deal with.”

♦♦♦ 

OWEN SMITH’S time as a lobbyist with Pfizer haunts his political career.

In June 2014, when Owen Smith was shadow Welsh Secretary, there was a major controversy involving Pfizer.

The American company made a £69 billion bid for AstraZeneca, the Anglo-Swedish company, which would have made Pfizer the world’s largest drug business.

It was opposed by then Labour Leader Ed Miliband who didn’t want a flagship UK company falling into US hands.

The fact that Labour were attacking a company when one of its own shadow Cabinet members had worked for the company as a lobbyist attracted media attention.

Owen Smith told the Sunday Telegraph:

“… obviously having worked there I’m probably a little more understanding than some of those other members …”

The paper added:

“Mr Smith said he was paid £80,000 a year to lobby for Pfizer.”

Pfizer eventually dropped the bid.

There have been suspicions that Owen Smith was paid far more than £80,000, so Press Gang did some digging.

Back in 2006, when he was working for Pfizer and contesting the 2006 Blaenau Gwent by-election, The Times sent two reporters to the constituency.

Their report contained the following statement:

“The Labour Party’s candidate for Westminster, Owen Smith, a … £200,000-a-year lobbyist for Pfizer ….””

We asked Owen Smith which was true: the £80,000 a year he told the Sunday Telegraph or The Times which said it was £200,000?

At the time we went to press, he had not replied.

♦♦♦

OWEN SMITH left Pfizer in 2008 and went to work in a similar role for the pharmaceutical company Amgen.

In 2010 he was selected as the Labour candidate for the safe Pontypridd constituency.

Again, he insists that his family and friends played no part in his selection.

One of these friends is Kim Howells, the MP who held the seat for Labour and had decided to step down at the 2010 election.

Howells is an old friend of Dai Smith and knows his son well.

Kim Howells MP
KIM HOWELLS
THE LABOUR politician held the safe Labour seat of Pontypridd for 21 years. Although he’s a friend of Dai Smith, and knows his son well, Owen Smith insists Howells played no part in his selection for one of the safest Labour seats in the UK.
Photo: PA

Owen Smith’s press team told us:

“The suggestion Kim helped Owen in his selection as the candidate for Pontypridd is also entirely false.”

“Whilst it is correct that Kim knew Dai, at no stage did Kim support or endorse Owen’s candidature.”

Once again Press Gang went back to the newspaper cuttings.

In a Western Mail report on Owen Smith’s selection in March 2010, the paper reported that he’d been selected after a second round of voting, winning by 104 votes to 74.

The article then states:

“Mr Smith … was supported by Kim Howells …”

Press Gang asked Owen Smith to clear up the contradiction.

There had been no reply by the time this article was published.

When Owen Smith was elected Labour MP for Pontypridd, he sold his Surrey home for £745,000.

♦♦♦ 

THE PROBLEM with Owen Smith is no-one knows what he really stands for.

In 2006 The Independent called him a “dyed-in-the-wool” New Labourite.

Now he’s the man to carry out the old Labour policies Jeremy Corbyn has revived.

Which of these two Owen Smiths is the real one?

Or is he just a political chameleon?

The manner in which he and his team have dealt with his past career is disturbing.

Take his political commitment.

“I grew up in South Wales during the miners’ strike, he says, “That’s when I came alive politically.”

He adds that he then joined the Labour Party in 1986.

Yet between 1986 and his selection as Labour candidate in the 2006 Blaenau Gwent by-election — two entire decades — there’s no evidence at all of any involvement in labour Party politics.

He doesn’t seem to have served a political apprenticeship at all.

Jeremy Corbyn, in contrast, was active in politics while at school, became a trade union official at 21 and a London councillor at 24.

In fact, Owen Smith’s career is much closer to David Cameron’s — a spell as a special adviser and years working in the corporate affairs of a major company.

When Smith says —

“I want to be a force for good in the world. Therefore, you need to achieve power. Nye Bevan, my great hero, said it’s all about achieving and exercising power. I’ve devoted my life to that.”

 — it’s the last sentence that rings false.

He’s been an active politician for just six years.

His attempt to push back from suggestions that his father helped his career is unconvincing.

He seems to believe any hint of nepotism and patronage is toxic to his reputation.

He doesn’t seem to understand that it’s not so much the fact that his father helped him — it’s the fact that he seeks to deny it.

He doesn’t seem to understand that it’s not so much what his salary was at Pfizer —  a huge salary is inevitable when working for a global combine — it’s the fact that he seeks to minimise it.

It’s a question of personal integrity.

If he can’t be trusted to give a true account of his own career, how can he be trusted to be the custodian of the values which Jeremy Corbyn has brought back into mainstream politics?

♦♦♦

THIS INVESTIGATION continues.

A crowdfunding project has been launched on the By-line site here.

♦♦♦
Published: 8 August 2016
© Press Gang
♦♦♦

Notes
1. The first part of this investigation was published on August 3 — Owen Smith: Forged By Patronage and Nepotism? Click on the title to read it.
2. Press Gang editor Paddy French declares personal interests in this story.
— in the 1980s he was the editor of Rebecca magazine which was in competition for a substantial Welsh Arts Council grant. One of the competitors was Arcade magazine and Dai Smith was one of its supporters. The council’s literature committee chose Rebecca but the full council overturned the decision — and gave the grant to Arcade.
— he’s one of the thousands of traditional Labour voters who have joined the party following Jeremy Corbyn’s election as Leader. He will be voting for Corbyn in the Leadership election.
3. The Rebecca investigation into nepotism and patronage at BBC Wales is explored in the articles The Son Of The Man From Uncle and In The Name Of The Father?
4. The cover block pic is by Gareth Fuller / PA.

♦♦♦

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THE PEOPLE v. MURDOCH: ENGAGEMENT

January 19, 2016

MURDOCH v THE PEOPLE- 2

LAST WEEK there were two major announcements about Rupert Murdoch.

On Tuesday the Times revealed he was engaged to fellow American citizen Jerry Hall.
 
They’re planning a marriage.
 
On the same day Press Gang asked Ofcom to hold an inquiry into the media mogul’s fitness to hold the Sky TV licence.
 
We’re planning a divorce.
 
If Ofcom declares Murdoch “unfit”, his forthcoming bid to take overall control of the broadcaster will fail.
 
He tried before — an attempt in 2011 was wrecked by the phone hacking scandal. 
 
If he’s found “unfit”, Murdoch will also be forced to sell his remaining 39 per cent stake in the broadcaster.
 
It will be the end of his TV empire in the UK.
 
Ofcom has acknowledged receipt of our request but has not formally responded.
 
This article spells out why this could be an important battlefield …

 ♦♦♦

IN JANUARY 1999 the Sun ran a World Exclusive.

The paper had discovered Jerry Hall had decided to end her marriage with Mick Jagger.

“Jagger divorce” was the front page headline on January 15.

The paper reported:

“The Texan model finally buckled yesterday as she ordered lawyers to start proceedings at the High Court in London.”

It was a famous scoop.

But how did the Sun get it?

The finger points to a young reporter who joined the paper in the late 1990s.

He’d discovered a new way of obtaining stories: hacking phones.

Andy Coulson — associate editor at the Sun at the time — was impressed.

It was later claimed he said of the reporter:

“He’s a one trick pony. But what a trick!”

It’s alleged the journalist was listening in to the voicemail messages of Jagger’s PR man Bernard Doherty. 

RUPERT MURDOCH Rupert Murdoch announced his engagement to Jerry Hall last week. The media have missed the allegation that personal information about Jerry Hall’s divorce from Mick Jagger was illegally obtained by the Sun. The story is told in Nick Davies’ book Hack Attack. Davies claimed a Sun reporter listened to the voicemail messages of one of Jagger’s team. This would given the paper the phone numbers of Jagger — and Jerry Hall … Photo: PA

ENGAGED
THE BILLIONAIRE announced his engagement to Jerry Hall last week. The media have missed the allegation that personal information about Jerry Hall’s “divorce” from Mick Jagger was illegally obtained by the Sun. The story is told in Nick Davies’ book Hack Attack. Davies claimed a Sun reporter — he gave him the codename “Sand” — listened to the voicemail messages of one of Jagger’s team. This would have given the paper the phone numbers of Jagger — and Jerry Hall …
Photo: PA

Coulson and the paper had been following the Jagger-Hall “marriage” — it was later ruled invalid — closely.

In November 1998, for example, the Sun discovered a lawyer acting for Jerry Hall was secretly meeting Jagger’s mistress in New York.

The lawyer was hoping the woman would provide ammunition in the event of divorce proceedings.

A Sun reporter was waiting for the couple when they left a restaurant.

The reaction of Jagger’s girlfriend was: “Oh my God, how did you find me?”

The lawyer asked the reporter: “How DID you know we were here?”

(The emphasis is in the original Sun article.)

Articles like these helped to build Coulson’s reputation.

In 2000 he joined News of the World editor Rebekah Brooks as her deputy.

He was already her lover.

Coulson was married, she was in the middle of a long relationship with EastEnders actor Ross Kemp.

In 2003, when Brooks was promoted to Sun editor, he took the reins of the News of the World.

In 2007 the paper’s royal editor Clive Goodman was gaoled for hacking phones — and Coulson resigned.

He later lied to a House of Commons select committee:

“… if a rogue reporter decides to behave in that fashion I am not sure that there is an awful lot more I could have done.”

The Goodman case would have been the end of most people’s career — but not Coulson’s.

Just four months later Opposition Leader David Cameron made him the Tories’ Director of Communications.

One of his champions was shadow Chancellor George Osborne.

Osborne owed Coulson.

Coulson had been kind to the shadow Chancellor. 

In October 2005 the Sunday Mirror published a photograph suggesting Osborne had been a cocaine user.

Taken when he was 22, the snap showed him with his arm around a dominatrix known as Madam Pain.

She was the partner of a friend.

In the background was a line of white powder Madam Pain claimed was cocaine.

The paper’s headline: “Vice Girl: I Snorted Cocaine With Top Tory Boy”.

A CRIMINAL AT NO 10 ANDY COULSON was David Cameron’s communications boss from 2007 until 2011. Critics warned Cameron’s team there were indications Coulson might be involved in the phone hacking scandal. Cameron, who denied ever hearing the warninss, described Coulson as a “friend”. Photo: PA

A CRIMINAL AT NO 10
ANDY COULSON was David Cameron’s communications chief from 2007 to 2011. Critics told Cameron’s team there were indications Coulson might be involved in the phone hacking scandal. Cameron, who denied ever hearing the warnings, described Coulson as a “friend”.
Photo: PA

Coulson also published the picture but the News of the World was unusually sympathetic.

“It was a stark lesson,” Osborne said, “of the destruction which drugs bring to so many people’s lives.”

He denied using cocaine.

When David Cameron became Prime Minister, Coulson joined him at No 10.

When the phone hacking scandal broke in 2011, Coulson resigned.

The rest is history: in July 2014 he was gaoled for 18 months for phone hacking.

There’s nothing new in the rise and fall of Andy Coulson — but it underlines the seriousness of the wrong-doing at Murdoch’s newspapers.

It forms part of our case that, by allowing Coulson to run a criminal enterprise at the News of the World, Rupert Murdoch is “unfit” to run Sky … 

♦♦♦

INCREDIBLY MURDOCH is now poised to make a new bid for Sky.

Like the film Back To The Future  — where a time traveller changes the past — it’s as if the criminal enterprise that thrived at the Sun and News of the World had never happened.

In 2011 David Cameron wouldn’t touch Murdoch with a barge pole.

Now they’re best friends again.

The once disgraced Rebekah Brooks is back as chief executive of Murdoch’s British newspapers. 

The scene is set for Murdoch to make another bid for the 61 per cent of the company his 21st Century Fox business doesn’t already own.

He’s been quietly preparing the ground — the company recently changed its name from BSkyB to Sky plc.

And it also bought Murdoch’s German and Italian satellite interests. 

AND THE BAND PLAYED ON DAVID CAMERON has performed a complete U-turn in his dealings with Rupert Murdoch. In 2011, agreeing that politicians had become too close to media tycoons, he promised: “It’s on my watch that the music has stopped.” Just before Christmas, he and his wife attended a party at Rupert Murdoch’s central London apartment. Photo: PA.

AND THE BAND PLAYED ON …
DAVID CAMERON has performed a complete U-turn in his dealings with Rupert Murdoch. In 2011, agreeing that politicians had become too close to media tycoons, he promised: “It’s on my watch that the music has stopped.” In December he and his wife attended a party at Rupert Murdoch’s central London apartment …
Photo: PA.

There are concerns the move will increase Murdoch’s share of the British market — bringing him closer to the stranglehold Silvio Berlusconi wields in Italy. 

When he tried to buy Sky in 2011, he was also opposed by an unlikely alliance of newspaper groups and other broadcasters.

The BBC and BT joined the Guardian, Telegraph, Mirror and Daily Mail groups in calling for the bid to be blocked.

But the real anxiety is over Sky News.

There are fears Murdoch will try and turn it into a version of his Fox News in the USA.

Fox has earned a reputation as an extreme right wing channel: its journalism the TV equivalent of the Sun.

This isn’t a problem for the Tories — but it is for those for oppose Murdoch.

Commercial broadcasting is tightly regulated in the UK, demnding high editorial standards and political impartiality.

Murdoch plans to deal with these concerns by hiving Sky News into a separate company, guaranteeing its editorial independence in the articles of association.

This solution satisfied Ofcom at the time of the 2011 bid.

Some critics are reassured: the watchdog is a formidable regulator, thwarting Sky’s ambitions on several occasions.

In 2006 Sky had bought an 18 per cent stake in ITV to prevent it merging with another company and creating a competitor to Sky.

An Ofcom inquiry decided the stake gave Sky too much influence in the UK and, eventually, Sky was forced to sell the stake at a loss.

Ofcom has also ordered Sky to reduce the price it charged rivals for the use of its material.

In 2009 Murdoch’s son, James, attacked the watchdog for imposing “astonishing” burdens on broadcasters. 

His solution was brutal:

“There is an inescapable conclusion that we must reach if we are to have a better society.”

“The only reliable, durable and perpetual guarantor of independence is profit.”  

The danger here is that David Cameron and George Osborne also have Ofcom in their sights. 

In July 2009 David Cameron said that he wanted to restrict Ofcom to its “narrow technical and enforcement roles” rather than issues of public policy.

“Ofcom, as we know it, will cease to exist,” he said.

The Tories were unable to carry out the pledge because they were in coalition with the Liberal Democrats until 2015.

Critics fear the Tories will now move to cripple Ofcom — and then quietly relax the restrictions on Sky News … 

♦♦♦

THE PRESS GANG campaign The People v. Murdochis designed to force Murdoch’s withdrawal from the UK TV scene.

A week has passed since we asked Ofcom to launch an inquiry into the “fitness” of Rupert Murdoch and his family to be involved in British television.

Under the 1996 Broadcasting Act Ofcom is charged with making sure licence holders are “fit and proper” persons to hold the licence.

Ofcom has already held an inquiry, in 2012.

Although it criticised James Murdoch for his handling of the phone hacking crisis, it decided there wasn’t enough evidence to take the licence away from the Murdochs.

But since then a vast amount of damaging material has emerged — see the previous article, Fightback, for more details. 

Alongside the campaign is a petition on the 38degrees website, here.

And a small crowd-funding project has been launched to pay the initial expenses of the campaign, here.

You can also follow the campaign on Twitter — @pguk10

♦♦♦

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THE PEOPLE v. MURDOCH

January 12, 2016

Murdoch_series_head_1

AT THE beginning of 2016 Rupert Murdoch once again dominates British media.

David Cameron is back on side.

Juries have refused to convict Sun journalists of bribing corrupt police officers.

The threat of a tough new media regulator has all but vanished.

In September Murdoch felt strong enough to rehabilitate his beloved Rebekah Brooks.

In December the most dangerous threat — the possibility of corporate charges — was lifted.

Today, the billionaire is more powerful than ever.

But all is not lost.

There are millions of people on three continents who oppose him.

Today Press Gang launches a new campaign — The People versus Murdoch.

We’ve found an important chink in the media mogul’s armour …

♦♦♦

THIS MORNING Press Gang sent a four page letter to the broadcasting regulator Ofcom.

We asked chief executive Sharon White to launch an inquiry into whether Rupert Murdoch and his family are “fit and proper” people to be involved in the satellite television company BSkyB.

Ofcom has this duty under the Broadcasting Acts of 1990 and 1996.

The watchdog looked at the issue back in September 2012 when the phone hacking scandal was at its height.

(Its report can be read here.)

Ofcom criticised Murdoch’s son James, who was in charge of the News of the World, for his handling of the crisis.

It found his actions:

” … fell short of the exercise of responsibility to be expected of the chief executive officer …”

But there wasn’t enough evidence to declare him unfit.

PRIME CONCERNS FOUR DAYS before Christmas the Prime Minister and several Cabinet members attended a private party at the London home of Rupert Murdoch. In 2011, at the height of the hacking scandal, Cameron told Parliament: "The truth is, we have all been in this together. The press, the politicians and the leaders of all parties — and, yes, that includes me ... Throughout all this, all the warnings, all the concern, the government at the time did nothing." The party — reported only by the Guardian — shows Cameron and Murdoch are now comfortably back in harness, "in this together"... Photo: PA

PRIME CONCERNS
FOUR DAYS before Christmas the Prime Minister and several Cabinet members attended a private party at the London home of Rupert Murdoch. In 2011, at the height of the hacking scandal, Cameron told Parliament: “The truth is, we have all been in this together. The press, the politicians and the leaders of all parties — and, yes, that includes me … Throughout all this, all the warnings, all the concern, the government at the time did nothing.” The party — reported only by the Guardian — shows Cameron and Murdoch are now comfortably back in harness, “in this together”…
Photo: PA

Of Rupert Murdoch it said there was no evidence he’d behaved inappropriately.

But Ofcom also made it clear that it was working “on the evidence available to date”.

It added:

“As Ofcom’s duty to be satisfied that licensees remain fit and proper is ongoing, should further material evidence become available, Ofcom would need to consider that evidence in light of its duty.”

Since that statement an enormous amount of new material has come into the public domain.

Ofcom has confirmed it has not considered this evidence.

Press Gang has now asked it to do so …

♦♦♦

FOUR MONTHS after Ofcom published its findings, Lord Justice Leveson produced his report.

He was much more critical of the Murdoch family than Ofcom.

On the response of senior management to the phone hacking scandal, he noted:

” … the evidence … points to a serious failure of governance within the NoTW [News of the World], NI [News International] and News Corporation.”

The key point here is that Lord Leveson’s criticisms extended all the way to the top of the empire.

Leveson said:

“If News Corporation management, and in particular Rupert Murdoch, were aware of the allegations, it is obvious that action should have been taken to investigate them.”

“If News Corporation were not aware of the allegations which, as Rupert Murdoch has said, have cost the corporation many hundreds of millions of pounds, then there would appear to have been a significant failure in corporate governance …”

A SERIOUS FAILURE OF GOVERNANCE LORD JUSTICE LEVESON took a long, hard look at the Murdoch empire — and wasn't impressed by what he saw. But his report is just half of the exercise — when David Cameron announced the inquiry back in July 2011 he said it would take place in two parts. The second part, to be held after all the criminal trials are over, "will examine the extent of unlawful or improper conduct at the News of the World and other newspapers, and the way in which management failures may have allowed it to happen." Although almost all cases have now been heard, Cameron is using the fact that a few are still in the pipeline to delay making an announcement. Rupert Murdoch is desperate to make sure it does not happen ... Photo: PA

A SERIOUS FAILURE OF GOVERNANCE
LORD JUSTICE LEVESON took a long, hard look at the Murdoch empire — and didn’t like what he saw. But his report is just half of the exercise — when David Cameron announced the inquiry back in July 2011 he said it would take place in two parts. The second part, to be held after all the criminal trials are over, “will examine the extent of unlawful or improper conduct at the News of the World and other newspapers, and the way in which management failures may have allowed it to happen.” Although almost all cases have now been heard, Cameron is using the fact that a few are still in the pipeline to delay making an announcement. Rupert Murdoch is desperate to make sure it does not happen …
Photo: PA

Leveson examined one of the key issues of the phone hacking saga.

This was the meeting in June 2008 where James Murdoch met with News International’s legal manager Tom Crone to discuss legal action taken by hacking victim Gordon Taylor, chief executive of the Professional Footballers Association.

Taylor’s lawyers had obtained a devastating document — the celebrated “for Neville” email — which contained transcripts of 35 voicemail messages.

Tom Crone took this email to the meeting — and told James Murdoch it shattered the company’s public insistence that phone hacking was restricted to just one “rogue reporter”.

James Murdoch denied Crone told him this.

Murdoch agreed to settle the case for the colossal sum of £425,000 providing Taylor agreed to keep it confidential.

When Ofcom examined this issue, it concluded Crone’s evidence was not:

” … sufficient to demonstrate that James Murdoch was made fully aware of the implications of the evidence disclosed in the Taylor litigation at the time he authorised the payment.”

Lord Justice Leveson took a different view.

On the conflict between James Murdoch and Tom Crone he said:

“I … conclude that Mr Crone’s version of events as to what occurred on 10 June 2008 should be preferred to that of James Murdoch.”

This is just one dramatic part of the Leveson Inquiry that Ofcom should consider.

♦♦♦

WHEN OFCOM examined the fitness of Rupert Murdoch and his family back in 2012, its emphasis was on the phone hacking saga at the News of the World.

It wasn’t able to examine the corruption scandal which erupted in 2011 when News International handed over emails implicating scores of Sun journalists.

The result was Operation Elveden — the Metropolitan Police investigation into the bribing of public officials.

Many Sun journalists had been arrested but the sub judice rules prevented Ofcom from considering the issue in 2012.

In the years that followed, Elveden saw many public employees — including police officers and prison warders — convicted.

Almost all of the Sun journalists were cleared by juries.

SCARLET WOMAN AFTER FOUR years in the wilderness, Rebekah Brooks is back in charge of Rupert Murdoch's British newspapers. Back in 2011 — a week after it was revealed the News of the World had hacked the phone of the murdered teenager Milly Dowler — Rupert Murdoch was asked what his priority was. "This one", he said, pointing to Brooks. She was later arrested and charged but was cleared by a jury at the Old Bailey in 2014. During the trial, it was revealed that during her marriage to the actor Ross Kemp, she'd had a secret affair with Andy Coulson ... Photo: PA

SCARLET WOMAN
AFTER FOUR years in the wilderness, Rebekah Brooks is back in charge of Rupert Murdoch’s British newspapers. Back in 2011 — a week after it was revealed the News of the World had hacked the phone of the murdered teenager Milly Dowler — Rupert Murdoch was asked what his priority was. “This one”, he said, pointing to Brooks. She was later arrested and charged but was cleared by a jury at the Old Bailey in 2014. During the trial, it was revealed that during her marriage to the actor Ross Kemp, she’d had a secret affair with Andy Coulson …
Photo: PA

Operation Elveden points to the Murdoch family tolerating a culture of paying corrupt public officials at both the News of the World and the Sun.

This culture was long-standing.

The practice was extensive — four public employees alone were paid a total of £146,000.

In 2004, press reports show the Sun paid sources £362,000 — an unspecified but clearly significant amount going to corrupt public employees.

Rebekah Brooks, Sun editor from 2003 to 2009, admitted at a Culture Media and Sport select committee hearing in 2003 that she had paid police officers for information.

Sitting at her side, News of the World editor Andy Coulson broke in to say they only did so “within the law”.

Chris Bryant MP told them paying police was unlawful.

Despite this clear warning, the Sun went on paying corrupt police officers for another eight years.

One of these was Surrey police detective Simon Quinn.

He’d been on the paper’s books since 2000 — and had supplied confidential information about the Milly Dowler case in 2002.

Quinn was later gaoled for 18 months after admitting taking £7,000 from the paper over a ten year period.

Press Gang has asked Ofcom to examine the implications of this scandal.

♦♦♦

IN ITS 2012 report, Ofcom considered Rupert Murdoch’s role in the “dark arts” saga.

“We do not consider that the evidence currently available to Ofcom provides a reasonable basis on which to conclude that Rupert Murdoch acted in a way that was inappropriate in relation to phone hacking, concealment or corruption by employees of … News International.”

Again, new evidence has since emerged which undermines that conclusion.

Two days after the hacking scandal erupted, in July 2011, Rupert Murdoch made a statement:

“Recent allegations of phone hacking and making payments to police with respect to the News of the World are deplorable and unacceptable.”

This was his public, penitent face.

DEPLORABLE AND UNACCEPTABLE THOSE WERE the words Rupert Murdoch used when the news hacking scandal broke in 2011. But the media mogul has a habit of saying one thing in public — and another in private. In 2013 he was recorded telling a private meeting of Sun journalists that, well, after all, paying cops was part of the general culture of Fleet Street ... Photo: PA

DEPLORABLE AND UNACCEPTABLE
THOSE WERE the words Rupert Murdoch used when the news hacking scandal broke in 2011. But the media mogul has a habit of saying one thing in public — and another in private. In 2013 he was recorded telling a private meeting of Sun journalists that, well, after all, paying police was just part of the general culture of Fleet Street …
Photo: PA

But he also knew News Corporation — worried about corporate charges that might destroy the business — had just handed over a huge cache of emails incriminating Sun journalists.

There was no mention of this in his statement.

In March 2013 he agreed to meet Sun journalists.

Morale at the paper was at rock bottom: many journalists felt colleagues had been thrown to the wolves.

The meeting was recorded by one of the reporters.

In a discussion about the possibility of Sun journalists being charged for paying public officials, Murdoch said:

” … I don’t know of anybody, or anything, that did anything that wasn’t being done across Fleet Street and wasn’t the culture.”

Another journalist said:

“You referred to, you used the phrase, things were done at the Sun for over 40 years. I personally have been here for less than ten. But I’m pretty confident that the working practices I’ve seen here were ones that I’ve inherited, rather than instigated.”

He asked:

“Would you recognise that all this pre-dates many of our involvement here?”

Murdoch’s reply couldn’t have been clearer:

“We’re talking about payments for news tips from cops: that’s been going on a hundred years.”

“You didn’t instigate it.”

Rupert Murdoch not only knew police officers were being paid by his journalists.

He approved of it.

♦♦♦

IF OFCOM launches an inquiry, it will be a major blow to Rupert Murdoch’s plans.

Any investigation will take months, if not years.

It will be impossible for Murdoch to launch a bid to buy the remaining 61 per cent of Sky he does not own while it’s taking place.

How can David Cameron’s government agree to his complete takeover if Ofcom is considering whether Murdoch is a “fit and proper” person to be involved in the broadcaster at all?

Press Gang has promised to submit a full statement to Ofcom.

This will include all of the material which has emerged since Ofcom’s report in 2012.

It will also seek to widen the scope of any Ofcom investigation to the Sunday Times where there have also been allegations of illegal news-gathering.

It will also include new criticisms of Murdoch’s own internal watchdog — the Management and Standards Committee (MSC).

In 2012 Press Gang warned the committee that serious problems still existed in the company.

The MSC ignored the warning.

♦♦♦

If you want to support The People v Murdoch campaign, click on the donate button below to make a contribution to Press Gang.

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♦♦♦

NEXT The People v Murdoch examines the possibility of a private prosecution against Rupert Murdoch.

♦♦♦

CORRECTIONS Please let us know if there are any mistakes in this article — they’ll be corrected as soon as possible.

RIGHT OF REPLY If you have been mentioned in this article and disagree with it, please let us have your comments. Provided your response is not defamatory we’ll add it to the article.

A SLICKER FULL OF LIES

November 4, 2015

PIERS_MORGAN_part_5-1

THE CLOSEST Piers Morgan has come to standing in the dock was in 2000.

He was editor of the Daily Mirror.

The government launched an investigation after he made huge profits from shares tipped by the paper.

Two of his journalists were sacked and later convicted of manipulating the stock market.

One of them went to gaol.

Piers Morgan was not charged.

An internal inquiry by Mirror owners Trinity Mirror cleared him of any “impropriety or wrong-doing”.

The Press Complaints Commission “severely censured” Morgan.

But Mirror directors suppressed key material.

This corporate cover-up continues to this day.

It involves the paper instructing lawyers to deliberately mislead the Leveson Inquiry.

This is the first time the full story has been told … 

♦♦♦

FOR PIERS MORGAN the nightmare began one evening in February 2000. 

It was Tuesday, February 1.

That day he’d had a secret meeting with Arsenal Football Club about becoming the club’s managing director.

“But they couldn’t afford me,” he said.

This was followed by management meetings. 

He arrived back at his 22nd floor office in Canary Wharf at 7pm.

His secretary Kerrie Buckley told him the Daily Telegraph had left a message.

Business reporter Suzy Jagger had a question for Morgan:

“Did you buy shares in Viglen Technology through Kyte Securities on 17 January?”

In his 2005 memoirs, The Insider, Morgan remembers: 

“I froze to the spot”. 

He had indeed bought shares in Viglen — a company owned by Amstrad boss Alan Sugar — on that day.

It was also the day the Daily Mirror business column, City Slickers, were preparing an exclusive story about Viglen starting an internet business. 

The article made the company its tip of the day: 

“We expect the price, which closed last night at 180p, to double in a very short time,” it said.

“Get in quick for the pay-day of a lifetime.” 

The next day, 18 January 2000, the shares doubled in value — from 180 pence to 366 pence. 

TIPPING POINT THE INFAMOUS column of 17 January 2000 sparked a scandal for the Daily Mirror that remains a toxic legacy of Piers Morgan’s editorship. City Slickers was the brainchild of Piers Morgan and former Sun editor Kelvin MacKenzie who was a Mirror executive. Launched in May 1998 with a “ cheeky irreverent style”, it was soon riding the dotcom boom of the late 1990s. The share price of the column’s top ten tips for 1999 rose by 142 per cent.

TIPPING POINT
THE INFAMOUS column of 17 January 2000 sparked a scandal for the Daily Mirror that remains a toxic legacy of Piers Morgan’s editorship. City Slickers was the brainchild of Piers Morgan and Mirror executive — and former Sun editor — Kelvin MacKenzie. Launched in May 1998 with a “ cheeky irreverent style”, it was soon riding the dotcom boom of the late 1990s. The share price of the column’s top ten tips for 1999 rose by 142 per cent.

His secretary asked if he was OK.

“Well, I’m not sure, to be honest,” Morgan told her. 

“I bought some bloody shares a few weeks ago, and I think it’s about to crash around my ears.”

Morgan rang Jagger back and admitted he’d bought some shares. 

“Better to be open and up front in situations like these,” he wrote.

He also “called the Mirror lawyers and talked them through it all.” 

At 11pm that evening he saw the first editions of the Daily Telegraph which carried his admission that he’d bought £20,000 worth of Viglen shares.

Morgan was relieved: 

“… there was just a small, balanced story on a left-hand inside page.”

“I wasn’t too worried when I saw it: if they’d really thought I’d done something awful, it would have been on the front.”

But the Sun also saw the Telegraph piece.

It changed its later editions, putting the story on the front page  — and carried an editorial calling for Morgan’s resignation.

The next day directors of Trinity Mirror, owners of the Daily Mirror, were getting involved.

They called Morgan down to the executive offices on the 20th floor of the Canary Wharf tower block. 

He told John Allwod, deputy chief executive, he had no idea the City Slickers were going to tip the company.

Morgan said he’d only bought a small number of shares tipped by the City Slickers.

In all, he’d only bought shares on about twenty occasions: 

“ … and made hardly any money on anything”. 

The law firm Lovells were brought in to help the board with its investigation. 

Emails between Piers Morgan, his broker and the City Slickers were examined. 

Anil Bhoyrul and James Hipwell, the two journalists who wrote the City Slickers column, were questioned.

They said Piers Morgan didn’t know about the Viglen article. 

The investigation took just two days.

On February 4 Trinity Mirror issued a statement to the Stock Exchange saying that an internal investigation had taken place.

“The findings of this inquiry … supported by the group’s solicitors Lovells … show there are no grounds for any accusations of any impropriety or wrong-doing by Piers Morgan.” 

Morgan sold his shares and donated the profits to charity. 

♦♦♦

BUT THE crisis wouldn’t go away.

The Department of Trade & Industry announced an investigation and the Press Complaints Commission launched an inquiry.

On February 17, a month after the Viglen article was published, the City Slickers Anil Bhoyrul and James Hipwell were sacked for gross misconduct.

“A decision I was not allowed to take any part in,” Morgan later wrote, “but everyone will think I did to save my own scrawny neck”.

“I can sense a certain frostiness among some of the staff, and there are even rumours that some senior journalists are planning a vote of no confidence in me”.

MORGAN THE SLICKER PIERS MORGAN was a greedy editor. On one occasion he emailed Bhoyrul to congratulate him on a piece about a major City figure getting involved in Formula One motor racing. “

MORGAN THE SLICKER
PIERS MORGAN was an avid follower of the City Slickers. On one occasion he emailed Anil Bhoyrul to say “I need some ideas for my general Pep, which is bursting with profit from NXT [a share tipped by the column]. Got any good longer term suggestions for this year?” He also emailed Bhoyrul to congratulate him on a piece about a major City figure getting involved in Formula One motor racing. “”Great story. Does this mean free tickets to the grand prix all round?” Bhoyrul replied: “I already have free tickets to all grand prix.” Morgan replied: “You did, Anil, you did .”
Photo: PA

There was no rebellion.

But the strain was affecting Morgan.

At the Press Gazette awards in March 2000 he got drunk and lost his temper with the team from the Sun.

“Then one of the Sun lot, quite understandably, threw a punch at me, which missed, and all hell broke out — with journalists from the Mirror and the Sun trading shoves, slaps, kicks and abuse.”

The Press Complaints Commission (PCC) completed its investigation in May 2000.

Unusually, its rules about financial reporting are more stringent than the criminal law.

Clause 14 of its Editors’ Code of Practice was clear:

“ … although it may not be illegal for journalists to buy shares about which they have recently written or are about to write, such purchases are forbidden by the Code.”

It heard from the senior of the two City Slickers, Anil Bhoyrul.

Bhoyrul had originally told the Trinity Mirror inquiry he had not informed Piers Morgan that the column was about to tip Viglen on January 17.

Now he changed his version of events.

He claimed he’d informed Morgan of the piece on the morning of January 17— and said Morgan later told him he’d purchased shares in the company.

Bhoyrul also confirmed he’d bought shares on at least six occasions which the column had tipped.

James Hipwell admitting 25 such purchases.

Morgan insisted his purchase of the Viglen shares was coincidental — he bought them several hours before the article tipping the company was written.

He didn’t tell the City Slickers he’d bought them.

There was, he said, a general buzz about the company and it was one of the City Slickers’ top ten tips for 2000.

There had been job adverts which indicated that an internet division was being planned.

A relative — a wealthy and apparently successful private investor — thought it a good company.

In an attempt to distance himself from the column, Morgan also claimed he’d had concerns about journalist James Hipwell.

He said he’d been tipped off that the journalist was “being investigated in respect of share dealings”.

Morgan claimed he discussed this with Bhoyrul in June 1999 and personally warned Hipwell not to buy shares in companies the column was tipping.

Bhoyrul and Hipwell denied Morgan had talked to them about this.

No evidence has ever emerged to back up Morgan’s assertion.

In May 2000 the Press Complaints Commission announced its findings.

It issued a “critical adjudication” which “severely censured” Piers Morgan and the City Slickers.

This was the most serious judgment it could make.

(It was the second time Piers Morgan had been censured — the first was in 1995 when he was editor of the News of the World.

See the Press Gang article Whodunnit? for more details.)

The Commission found Morgan had breached Clause 14.

He had bought shares in Viglen and another company.

The PCC did not consider it necessary to decide if he had known the Viglen shares were going to be tipped.

As editor, Morgan had also allowed the City Slickers to engage in “flagrant, multiple breaches of the code over a sustained period of time.”

Morgan had therefore “fallen short of the high professional standards demanded by the code”.

PCC chairman, Lord Wakeham, said there was a “clear climate of slack” at the paper.

The watchdog referred the matter to Philip Graf, Trinity Mirror’s chief executive, “in view of the unsatisfactory state of affairs revealed by this episode.”

According to the PCC, Trinity Mirror issued a “severe reprimand” to Morgan and a “written warning” about his management of the paper.

The PCC congratulated itself:

“This is an example of where the provisions of a tough industry Code are more onerous than the law and an example of the strength of effective self-regulation.”

There were no financial penalties, however.

Naturally, the Sun made the most of the ruling — its editorial verdict on Morgan:

“A lying spiv.”

♦♦♦

SIX MONTHS after the Commission’s ruling, the scandal erupted again. 

On 12 November 2000 the newspaper Sunday Business (it closed in 2006) published emails exchanged between Morgan and Bhoyrul.

The emails — also highlighted in other papers — had been deleted.

But inspectors from the Department of Trade & Industry were able to recover them from Trinity Mirror’s central servers.

One was sent by Morgan to Bhoyrul at 4.33pm on the afternoon of 17 January 2000 — the day he bought the Viglen shares.

KILLER EMAIL THE EXPLOSIVE Sunday Business article which gave the lie to Morgan’s claim that he had not told the City Slickers he’d bought shares in Viglen. The paper obtained an email from a source in the Department of Trade and Industry which was investigating Morgan. It showed Morgan discussing Viglen with one of the City Slickers before the paper went to press — and suggested he had also talked about the company before he bought shares …

KILLER EMAIL
THE EXPLOSIVE Sunday Business front page article which gave the lie to Morgan’s claim that he had not told the City Slickers he’d bought shares in Viglen. The paper obtained an email from a source in the Department of Trade and Industry which was investigating Morgan. It suggested Morgan discussed Viglen with one of the City Slickers before the article went to press …

Earlier that day, Bhoyrul claimed he’d urged Morgan to sell shares he held in a company called Pace Micro Technology — and invest the proceeds in Viglen.

He said Morgan told him he would buy into Viglen but keep the Pace shares.

After seeing the Pace shares rise, Bhoyrul said he e-mailed Morgan congratulating him on his decision to keep his stake.

Morgan sent a message back — at 4.33pm on the day he bought the shares — saying that he’d sold the Pace shares after all.

This crucial 10 word message reads:

“I sold them this morning for bloody Viglen. Congratulations halfwit.”

Bhoyrul told Sunday Business:

“I said I had an e-mail from Piers about Viglen that day, but it disappeared when I tried to recover it after I was sacked.”

“If it’s turned up, that’s very serious as the Mirror accused me of lying about it.”

Bhoyrul added:

“The Press Complaints Commission may have to look at this again.”

PCC director Guy Black played down the possibility of any new inquiry on the basis of the emails.

He said the Press Complaints Commission had never needed to consider the e-mails between Morgan and Bhoyrul as it was already clear the code had been breached.

“We haven’t been given any of this new evidence yet but a breach of the code is a breach of the code,” he said.

“The Commission found him guilty in the first place.”

“The existence of e-mails may add icing to the cake but it unlikely to change our decision.”

A Trinity Mirror spokesman claimed that the company had known about the e-mails for some time.

“We had a full investigation and nothing new has come to light that leads us to change our minds,” he said.

The PCC did not re-open the investigation.

At the time Morgan declined to comment.

When one reporter rang him, Morgan said “goodbye, mate” and hung up.

By the end of the 2000, it was clear Morgan had weathered the storm.

In April 2001 he signed a new contract — and became editor in chief of the Sunday Mirror as well as the Daily Mirror.

♦♦♦

IT TOOK the Department of Trade & Industry (DTI) four years to complete its investigation.

It investigated Morgan because it suspected insider trading.

Insider trading is when employees of companies leak confidential information to outsiders so that shares can be bought before the price goes up.

Viglen was one of the companies investigated.

The shares had doubled as soon as the City Slickers tipped them.

It would later emerge that the Financial Services Authority had — secretly — censured Viglen for not declaring its intention to launch an internet “without delay”.

The rules of the Stock Exchange say price sensitive information should be announced via its own news service.

DTI inspectors interviewed Piers Morgan on several occasions but, in the end, could find no evidence of insider trading either in Viglen or any of the other shares he had bought.

It decided not to prosecute.

City Slickers Anil Bhoyrul and James Hipwell were charged along with a private investor with another offence — market manipulation under the Financial Services Act.

They had

“conspired to create a misleading impression as to the value of investments for the purpose of creating the impression and thereby inducing other persons to acquire those investments, by using the City Slickers column in the Daily Mirror to tip those investments.”

The prosecution case was that they operated a “first buy, then tip, then sell” policy.

Many of the shares they made a killing on subsequently dropped in value — thus cheating ordinary investors who’d followed the tips.

Ironically, the Viglen investments were not part of the prosecution.

Bhoyrul pleaded guilty — but Hipwell and the investor decided to fight the case.

JAMES HIPWELL THE CITY SLICKER'S decision to plead not guilty led to most of the story finally seeing the light of day. By the time he was sentenced to six months in gaol, he’d had a kidney transplant. Photo: PA

JAMES HIPWELL
THE CITY SLICKER’S decision to plead not guilty led to most of the story finally seeing the light of day. By the time he was sentenced to six months in gaol, he’d had a kidney transplant.
Photo: PA

It was this decision that, finally, brought a fuller version of the scandal into the open.

The trial started at Southwark Crown Court in London in October 2005.

(By then Piers Morgan was no longer Mirror editor.

He’d been sacked in May 2004 after he published photos of British soldiers abusing prisoners in Iraq which turned out to be fakes.)

The prosecution said Hipwell made a profit of £41,000 buying and selling shares that were tipped between August 1999 and February 2000.

Bhoyrul made £15,000 in the same period.

Hipwell said he made no secret of his trading and bought shares in his own name.

In the witness box, he said Piers Morgan told him:

“ … if we were in the business of tipping shares he was happy for us to trade and even used the analogy along the lines of you would not learn to drive a car from somebody who had never been in a car.”

To back up his version of events, the defence was to make a series of sensational revelations.

The thrust of these was that there had been a deliberate cover-up by Morgan and directors of Trinity Mirror.

♦♦♦

THE FIRST bombshell was that Morgan and Trinity Mirror had not been telling the truth about the extent of Morgan’s dealing in Viglen shares. 

For nearly five years it was believed Morgan had only bought £20,000 worth of shares.

In fact, the figure was more than three times greater — £67,000.

Morgan had said that he bought the shares on a whim.

In fact, he spent a considerable amount of time and effort in acquiring the shares on 17 January 2000.

Hipwell’s barrister spelt it out:

12.33pm
Morgan arranges for the purchase of 6,884 Viglen shares worth £12,805 through his then wife Marion’s tax-free private equity plan (PEP).

12.45pm
Twelve minutes later, Morgan uses his own PEP to buy a further 19,632 shares worth £36,074.

3.28pm
Morgan rings his broker Antony Laiker at stockbrokers Kyte Securities and buys a final block of 10,000 shares worth £18,275.

This is nine minutes after the Mirror’s editorial computer records Anil Bhoyrul filing the Viglen piece — at 3.19pm.

Morgan’s final purchase is made through a nominee account, a legal device which hides the identity of the purchaser.

It is this last purchase which generates the original tip-off — probably from someone inside Kyte Securities — that Morgan had bought £20,000 worth of shares in the company.

Reporters in court were shocked by this revelation.

It was quickly followed by another.

It was revealed that other journalists had also bought shares in Viglen on the same day: business editor Clinton Manning, news editor David Leigh and reporter Ian Miller.

And other senior figures had bought other shares later tipped by the City Slickers.

They included deputy editor Tina Weaver and the paper’s lawyer Martin Cruddace.

Cruddace is a close friend of Piers Morgan.

In 2010, Morgan wrote of Cruddace:

“A finer, more loyal, trusted colleague and friend it would be impossible to find.”

GAMBLING MAN MARTIN CRUDDACE, the Daily Mirror’s legal manager during the City Slickers scandal, is one of Piers Morgan’s closest friends. In 1999 he organised a syndicate with Piers Morgan and James Hipwell to buy stakes in a racehorse called Ledham. When Morgan was kicked out by his wife in 2000 — after he started an affair with Sun journalist Marina Hyde — Cruddace put him up in his London flat. Cruddace left the Mirror in 2002 and has worked in the gambling industry ever since. Photo: Betfair

GAMBLING MAN
MARTIN CRUDDACE, the Daily Mirror legal manager during the City Slickers scandal, is one of Piers Morgan’s best friends. In 1999 he organised a syndicate with Piers Morgan and James Hipwell to buy a racehorse called Ledham. When Morgan was kicked out by his wife in 2000 — after he started an affair with Sun journalist Marina Hyde — Cruddace put him up in his London flat. Cruddace left the Mirror in 2002 and has worked in the gambling industry ever since.
Photo: Betfair

It was the lawyer’s job to advise Morgan about libel and the Press Complaints Commission’s Editors’ Code.

He also took a close interest in the City Slickers column after the industrialist Victor Kiam sued the Mirror in 1999.

Kiam was later awarded more than £100,000 in damages.

Cruddace also invested £6,500 in several companies — but not Viglen — before they were tipped by the City Slickers.

His mother, his girlfriend and her father also bought shares in some of these firms.

Cruddace told the jury he “regretted” the purchases but insisted it was a “coincidence” they were later tipped by the Slickers.

In his evidence Hipwell claimed he’d asked Cruddace if the column should carry a warning that the City Slickers held shares in some of the companies they were tipping.

He says Cruddace told him it wasn’t appropriate.

Cruddace said he couldn’t remember the conversation but accepted it might have taken place.

At the trial Hipwell also alleged that Cruddace — and deputy editor Tina Weaver — put pressure on him to protect Morgan.

Both denied this allegation.

The jury also heard the transcript of a phone call between Anil Bhoyrul and his broker Richard Grossman of stockbrokers Redmayne Bentley.

Grossman also acted for Hipwell.

Bhoyrul was concerned about buying shares that he and Hipwell were tipping.

“We have been sort of been asking our people at the Mirror …”, he said, “When we tip something, if we have shares in something, is it a problem?”

Grossman replied:

“It’s all to do with something called morality …”

“As far as the law is concerned, I am very surprised your company doesn’t have rules on it.”

Grossman admitted he and other Redmayne Bentley employees also bought shares tipped by the City Slickers but denied the purchases were influenced by the column.

Once again, it was just coincidence …

♦♦♦

THERE WAS another dramatic development when a statement from public relations man Nick Hewer was read out.

Hewer — later to become famous as one of Alan Sugar’s advisers on the television programme The Apprentice — represented Viglen in 2000.

Hewer said that on the day Morgan bought his shares Bhoyrul rang him for a quote for the Viglen story.

After the storm broke in February, he rang him again.

Hewer said Bhoyrul:

“explained that Piers was in trouble and that we needed to help him.”

Hewer was asked to tell the law firm Lovells, who were helping Trinity Mirror executives with their investigation, that the call from Bhoyrul on January 17 came much later than it actually had.

This would show that Bhoyrul wrote the Viglen article late on January 17 — long after Morgan bought his last batch of shares in the company.

“I explained I was unable to help as all the facts were locked in a letter to the Stock Exchange from Viglen,” Hewer wrote.

“This suggestion placed me in a difficult position …”

“My living was to deal with these people and I again explained I could not be pressured into saying anything.”

The statement also revealed that Hewer subsequently spoke personally to Piers Morgan.

They discussed the timing of Bhoyrul’s phone call and Morgan suggested it would be “helpful if the time of the clearance quote could be pushed back from the time it was actually made.”

Hewer told Morgan he was not prepared to lie — but agreed to say the call was made “late in the afternoon”.

(Morgan denies this allegation.

He told Press Gazette after the trial that it was “absolutely cock and bull rubbish”.

“I never asked Nick Hewer to lie.”)

Solicitor Graham Livingston, who carried out the Lovells inquiry into the scandal on behalf of Trinity Mirror, was questioned about Hewer’s testimony when he gave evidence.

He was asked if he would have cleared Morgan of “impropriety or wrong-doing” if he’d known that Hewer had been asked to lie.

Livingston said he would not.

TWO FACED? PIERS MORGAN says Nick Hewer — now the presenter of Channel 4’s Countdown programme — is lying when he claims the former Mirror editor asked him to lie on his behalf ... Photo: PA

TWO FACED?
PIERS MORGAN says Nick Hewer — now the presenter of Channel 4’s Countdown programme — is lying when he claims the former Mirror editor asked him to lie on his behalf …
Photo: PA

It was during the trial that the fact that the Financial Services Authority had censured Viglen for not declaring its decision to launch an internet site “without delay” was revealed.

The criticism had never been made public.

Hipwell’s defence was that he was open about his share dealing — and only did so because Piers Morgan and other senior reporters and executives were also doing it.

The jury wasn’t impressed — and he and the private investor were convicted.

He was sentenced to six months in prison.

Mr Justice Beatson said the sentence would have been longer had Hipwell not been suffering from kidney failure.

And he added:

“There was no guidance from your superiors or from in-house lawyers, and there was evidence of a culture of advance information about tips — and share dealing in the office.”

“I also take into account the fact there was no formal code of conduct for journalists at the Daily Mirror.”

The private investor was gaoled for three months.

Anil Bhoyrul, who admitted the offence, was ordered to serve 180 hours of community service.

♦♦♦

THE TRIAL was an eye-opener for Roy Greenslade, former Mirror editor turned media commentator.

He felt the Press Complaints Commission had been conned by Piers Morgan and Trinity Mirror back in 2000 into believing he’d only purchased £20,000 worth of Viglen shares.

Greenslade believed several Trinity Mirror executives had conspired to give false evidence to the Commission.

Morgan, he thought, would have found it difficult to survive as Mirror editor if the true scale of his dealings in Viglen had been known.

He asked the Commission to reinvestigate.

ROY GREENSLADE THE MEDIA commentator — and a former Daily Mirror editor — was shocked by the revelations which emerged during the City Slickers trial in 2005. He believed Piers Morgan and the Mirror had deliberately deceived the Press Complaints Commission back in 2000. Photo: Roy Greenslade

ROY GREENSLADE
THE MEDIA commentator — and former Daily Mirror editor — was shocked by the revelations which emerged during the City Slickers trial in 2005. He believed Piers Morgan and Mirror directors had deliberately deceived the Press Complaints Commission back in 2000.
Photo: Roy Greenslade

The PCC asked Trinity Mirror to explain why it had suppressed the full value of Morgan’s Viglen purchases.

The PCC reported that the company

“told the Commission it almost became a touchstone of the veracity of Messrs Bhoyrul and Hipwell as to whether they could show independent knowledge of the total of £67,000.”

Directors decided to hold back the total amount involved.

As a result, it had sent the Commission an edited version of the report prepared by the law firm Lovells.

The Commission “considered the logic” behind the company’s strategy “weak”:

“… it was a matter of regret” that the company had “for whatever reason — submitted a partial account of Mr Morgan’s share dealings to the Commission which had the effect of misleading it.”

The Commission also criticised the company for not issuing a statement after the trial explaining why it had suppressed the true amount of Morgan’s Viglen holdings.

But it had “not found evidence to suggest that directors … had conspired to present untruthful evidence to … protect Mr Morgan and to minimise the Commission’s criticisms.”

Roy Greenslade told Press Gang he was convinced the Commission — had it known the full facts — would have issued “an even harsher judgment than it did”:

“In the PCC’s previous verdict against Morgan, over a breach of the Code when he was editor of the News of the World, the chairman had prevailed on the paper’s owner, Rupert Murdoch, to admonish him in public.”

“The PCC could have done that over the Viglen affair too and that would have placed the Trinity Mirror board under pressure to fire him.”

He was certain Trinity Mirror management had been

“… complicit in allowing Morgan to escape the appropriate PCC censure.”

One key fact was left out of the Commission’s consideration — the “killer email” Morgan sent to Bhoyrul at 4.33pm on the day he bought his shares.

♦♦♦

IT TOOK five years before the inside story of the City Slickers scandal finally saw the light of day.

But Trinity Mirror continues to deny key elements of it to this day.

David Seymour — political editor of the Mirror newspapers from 1993 to 2007 — made a statement to the Leveson Inquiry in 2012.

He said he had openly expressed concern about the City Slickers long before the scandal broke.

Of the Viglen affair he wrote:

“There was, in my view, a ‘killer email’ showing conclusively that the editor knew what was going on.”

This is a reference to the 4.33pm email Piers Morgan sent Anil Bhoyrul on 17 January 2000.

Trinity Mirror instructed the law firm Herbert Smith to contest this allegation.

In a letter to the Inquiry, Herbert Smith stated:

“Mr Seymour’s allegation … that there was a ’killer email showing conclusively’ that former editor of the Daily Mirror Piers Morgan ’knew what was going on’ in respect of the City Slickers matter, is wrong.”

KILLER EMAIL v URBAN MYTH THIS IS the email David Seymour believed proved Piers Morgan knew the City Slickers were going to tip the Viglen shares. It was published in the Sunday Business in November 2000. Trinity Mirror say it's an

KILLER EMAIL v URBAN MYTH
THE EMAIL former Mirror political editor David Seymour believes proved Piers Morgan knew the City Slickers were going to tip the Viglen shares was reproduced in the Sunday Business in November 2000. Trinity Mirror told the Leveson Inquiry the email was an “urban myth” …

“Trinity Mirror informs us that the existence of such an email was an ’urban myth’ during the City Slickers saga.”

“No such email was ever found despite a thorough investigation by the DTI — which included … the seizure of a number of personal computer hard drives including those of Messrs Morgan, Hipwell and Bhoyrul.”

This article has already shown that this ‘killer email’ — the 4.33pm  email Morgan sent to Anil Bhoyrul on the day of his Viglen share purchases — had been revealed in November 2000.

When Seymour wrote to the Inquiry to give further evidence about the email, he was told that there wasn’t time to add new material…

We asked Trinity Mirror for a comment.

Company secretary Jeremy Rhodes said:

“The contents of your email are noted.”

♦♦♦ 

ONE INTRIGUING question emerges out of this Press Gang investigation.

In 2000 Piers Morgan said he had sold his shares in Viglen — and donated the profits to charity.

MORALLY DEFUNCT AFTER THE trial of the City Slickers in 2005, Piers Morgan told the Independent on Sunday: “I fully accept that I’m a morally defunct human being.” At the height of the scandal, in 2000, he told actress Kate Winslet “ … you don’t get to be the editor of the Daily Mirror without being a fairly despicable human being.” Photo: PA

MORALLY DEFUNCT
AFTER THE trial of the City Slickers in 2005, Piers Morgan told the Independent on Sunday: “I fully accept that I’m a morally defunct human being.” At the height of the scandal, in 2000, he also told actress Kate Winslet — in a conversation about her unlisted telephone number — “ … you don’t get to be the editor of the Daily Mirror without being a fairly despicable human being.”
Photo: PA

At that time, he was only admitting to owning £20,000 worth of shares.

But he and his wife actually owned £67,000 worth.

So did he donate just the profits from the £20,000 block — or did it also include the proceeds of the entire £67,000 investment?

We put this to Piers Morgan this morning.

There was no answer by the time this piece was published.

♦♦♦

NOTE
This is the fifth instalment of the series A Pretty Despicable Man.
Already published are
Dial M For Morgan
Down In The Gutter
Assault On The Bank Of England
Whodunnit?
Click on a title to read the article.

♦♦♦
© Press Gang
Published: 4 November 2015
♦♦♦

COMING UP 
THE MIRROR: CRACK’D FROM SIDE TO SIDE
WHEN THE Daily Mirror started recruiting former Murdoch journalists — like Piers Morgan — it committed itself to the use of the “dark arts” as a way of competing with the Sun. The full extent of the moral corruption of one of Britain’s greatest newspapers is only just beginning to emerge. And yet an ostrich-like management continues to deny the full extent of the catastrophe. Part Six of A Pretty Despicable Man says it’s time the company cleaned out the stables once and for all … 

 ♦♦♦

JOIN THE GANGBUSTERS …
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CORRECTIONS Please let us know if there are any mistakes in this article — they’ll be corrected as soon as possible.

RIGHT OF REPLY If you have been mentioned in this article and disagree with it, please let us have your comments. Provided your response is not defamatory we’ll add it to the article.

TORY MP CONCEALED LINK TO MILIBAND TORMENTOR

May 6, 2015
.
 

TORY MP Andrew Jones failed to declare an interest in a company owned by controversial Leeds businesswoman Catherine Shuttleworth.

Shuttleworth hit the headlines in last week’s BBC Question Time when she attacked Labour leader Ed Miliband.

Andrew Jones, MP for Harrogate and Knaresborough in the last Parliament, helped Shuttleworth set up her marketing business in May 2006.

ANDREW JONES THE MP worked with Catherine Shuttleworth in the late 1990s and was company secretary of her marketing business until 2010. But he didn't tell Parliament about their links ... Photo:

NOT SAVVY
THE MP worked with Catherine Shuttleworth in the late 1990s and was company secretary of her Get Savvy Marketing company until 2010. But he didn’t tell Parliament about the appointment — he says he took no payment from the company after he was elected. 

He was company secretary for more than four years.

He should have declared his interest when he was elected an MP in the May 2010 General Election.

He didn’t do so.

Press Gang investigates the links between an MP and a marketing executive …

♦♦♦

IT WAS the Daily Mail which prompted this inquiry.

The paper lionised Catherine Shuttleworth after she savaged Ed Miliband on Question Time last Thursday over the economy.

She volunteered to be a member of the Question Time audience as an “undecided” voter but declared she was going to vote Conservative during her exchange with the Labour leader.

The Daily Mail hailed her as “the woman who shredded Red Ed”.

It continued:

“How marketing company boss used laser-like precision to lead audience attack on Labour leader.”

However, Twitter comments began revealing that she had signed a letter from 5,025 small businesses to the Daily Telegraph backing the Tories just four days before the programme.

SCAMP Catherine Shuttleworth started her company in 2006 under the name Scamp Marketing. In 2011 she told the Yorkshire Post the company had a turnover of £6.5 million and 70 staff. In December 2013 the company had cash in the bank of £382,000. Photo: BBC

SCAMP
Catherine Shuttleworth started her company in 2006 under the name Scamp Marketing. In 2011 she told the Yorkshire Post Get Savvy Marketing had a turnover of £6.5 million and 70 staff. In December 2013 the company had cash in the bank of £382,000.
Photo: BBC

The letter was clear:

“We would like to see David Cameron and George Osborne given the chance to finish what they have started.”

Other tweets also revealed she’d started her Leeds-based marketing company with Andrew Jones MP.

The Daily Mail allowed Shuttleworth to answer these criticisms in an Exclusive interview on May 1.

The paper asked her if she was a Tory.

“Oh God no,” she replied.

“I’ve never been a member of any political party and I do not intend to be.”

“I’m not a Tory at all. It’s absolute nonsense. Absolutely not, categorically no.”

She signed the Telegraph letter from small businesses:

” … because I agreed with it. I have never done anything like that before.”

She explained how Andrew Jones — Tory MP for Harrogate and Knaresborough and a candidate in tomorrow’s General Election — came to be involved in her business Get Savvy Marketing.

She told the paper:

“Fifteen years ago I worked with Andrew in another business.”

“When I set my business up nine years ago a number of people helped me to do different things and Andrew helped me do some of that.”

“That was long before his political career started.”

“There is no connection, he literally set some stuff up.”

The Daily Mail article was so uncritical of Shuttleworth that Press Gang decided to investigate.

We found most of her comments do not stand up to serious examination …

♦♦♦

WHEN CATHERINE Shuttleworth was an 18-year-old student, she was super-confident.
 
“Never in my whole life have I thought I couldn’t do something,” she told the Yorkshire Post in 2011. 
 
Her “back-up plan”, she told her interviewer, was to be Prime Minister.
 

She didn’t say which party she would be leading …

QUESTIONABLE TIME  DAVID DIMBLEBY should have been sharper during the exchange between the allegedly

QUESTIONABLE TIME
DAVID DIMBLEBY might have been sharper during the exchange between the allegedly “undecided” Shuttleworth and Ed Miliband. When she attacked the Labour leader — over the note Chief Secretary to the Treasury Liam Byrne left for his successor in 2010 saying: “I’m afraid there is no money” — Dimbleby could have reminded viewers that the Tories have also made similar jokes. In 1964 Tory Chancellor Reginald Maudling left a note to his successor James Callaghan which said: “Good luck, old cock … Sorry to leave it in such a mess.”
Photo: BBC

Shuttleworth went to school in Sheffield and studied retail marketing at Manchester Polytechnic.After working at Allied Carpets and Dixons, she came back to Yorkshire in 1994 when her partner Neal Austin got a job with supermarket group ASDA.

Shuttleworth went to run a marketing company which did work for ASDA.

By 2003, she and her husband were moving up in the world.

They bought a detached house in Weeton Avenue, Leeds for £535,000.

In 2006, her husband left ASDA to become a senior executive at rival Morrisons. 

In the same year, Shuttleworth set up Get Savvy Marketing after winning a big contract from ASDA.

The company secretary was Andrew Jones — the man who would later become Tory MP for Harrogate and Knaresborough.

Jones had spent 25 years in sales and marketing with firms like B&Q, Superdrug, Going Places and Taylors of Harrogate. 

The pair had already worked together.

Jones was never a shareholder in Get Savvy Marketing and Shuttleworth, who began with three-quarters of the shares, soon owned them all. 

But when she told the Daily Mail —

“When I set my business up nine years ago a number of people helped me to do different things and Andrew helped me do some of that.”

“That was long before his political career started.” 

— she wasn’t telling the truth.

Andrew Jones joined the Conservative Party in 1987.

A decade later he was already a well-known figure in Conservative circles and chaired the influential think-tank, the Bow Group, in 1999-2000.

In 2001 he unsuccessfully contested the Harrogate and Knaresbrough constituency. In 2003 he was elected a Tory councillor on Harrogate Borough Council — and rose to become Cabinet Member for Finance and Resources.

He was still company secretary of Get Savvy Marketing when he became an MP …

♦♦♦

WHEN NEW MPs are elected to Parliament, they are expected to declare their financial interests.When Andrew Jones entered the House in 2010, the relevant Code of Conduct stated that its purpose was

” … providing the openness and accountability necessary to reinforce public confidence … ”

“Members are required to complete a registration form and submit it … within one month of their election to the House … ”

Any change must be registered within 28 days.

NON-DECLARATION ANDREW JONES' entry in the 2010 Register of Members' Financial Interests. There is no declaration of  his role in Catherine Shuttleworth's company. All he admits to is receiving £872 as a Harrogate Borough councillor in his first two months as an MP.

NON-DECLARATION
ANDREW JONES’ entry in the 2010 Register of Members’ Financial Interests. There is no declaration of his role in Catherine Shuttleworth’s company. All he admits to is receiving £872 as a Harrogate Borough councillor in his first two months as an MP.

The first register of the 2010-2015 Parliament was published on 25 October 2010.

The only entry under Category 2 —  “Remunerated employment, office, profession, etc …” — is Jones’ payments as a Harrogate councillor.

He did not resign from Get Savvy Marketing until the following month.

A spokeswoman for the Parliamentary Commissioner for Standards, Kathryn Hudson, told Press Gang:

“During dissolution (i.e. until after the General Election) the Commissioner cannot look at any allegations of breaches of the rules.”

Press Gang will lodge a complaint once the election is over.

We asked Andrew Jones for a comment.

There was no reply by the time this piece was posted in the early hours of Wednesday morning.

However, later that morning he emailed the following statement:

“MPs are required to declare outside earnings in the Register of Members’

Financial Interests, to detail who employed them, how much money was earned, how many hours worked and the nature of the work.From the date I was elected onwards I did no work for the Company, so
therefore received no remuneration. To be clear, while the paperwork and
administrative arrangements were made for terminating my role as Company Secretary and putting in place new arrangements for the Company I did no work and therefore received no payments or benefits of any kind.Had I done so my understanding is that a declaration would have been
required and I would have made such a declaration. There was nothing to
declare, so the Register of Members’ Financial Interests is complete and
correct.”

Press Gang also asked Harrogate Borough Council for the last declaration Andrew Jones made when he was a councillor.We were interested to see if he’d declared his role in Get Savvy Marketing.

After seven hours Giles Latham — the authority’s Communication and Marketing Manager (Organisational Development and Improvement) — came back to say the council couldn’t find it.

We then asked for copies of all Andrew Jones’ declarations during the years he served.

Latham came back to say that this — and other questions — would be considered under the Freedom of Information rules.

This gives the authority up to four working weeks to reply …

♦♦♦

PRESS GANG also emailed Catherine Shuttleworth.

We asked about her false comment to the Daily Mail that Andrew Jones’ involvement in Get Savvy Marketing took place long before he became a politician.

There was no reply by the time this article was posted. 

♦♦♦

Published: 6 May 2015
© Press Gang 

♦♦♦ 

NEXT
DOWN IN THE GUTTER
A FORENSIC examination of Piers Morgan’s celebrated appearance on Desert Island Discs in 2009. He told presenter Kirsty Young phone hacking was one of the “down in the gutter” tactics used on the Daily Mirror.

What he didn’t tell her was that she, too, had been a target of the paper’s “gutter” tactics. In 1998 the paper mounted a surveillance operation to prove she was having an affair with a married man.
The story is also pregnant with the possibility it was based on phone hacking …

 ♦♦♦

JOIN THE GANGBUSTERS …
THERE’S A need for a trustworthy website to expose rogue reporters. Press Gang is that outlet — fearless and fair. Join us by becoming a gangbuster and help pay some of our expenses. Just hit the button …

Donate Button with Credit Cards

CORRECTIONS
Please let us know if there are any mistakes in this article — they’ll be corrected as soon as possible.

RIGHT OF REPLY
If you have been mentioned in this article and disagree with it, please let us have your comments. Provided your response is not defamatory we’ll add it to the article.

ASSAULT ON THE BANK OF ENGLAND

April 27, 2015

PM - ASSAULT

THE DAILY MIRROR broke the law on an industrial scale throughout Piers Morgan’s editorship.

And police have had the evidence for more than a decade.

Already —in Whodunnit?Press Gang has shown the paper used a private eye to carry out illegal news-gathering in the early 2000s.

This included evidence that former Daily Mirror reporter Tom Newton Dunn — now political editor of the Sun — allegedly ordered a criminal record check on a sitting MP.

Piers Morgan claims he was ignorant of all of this.

He told the Leveson Inquiry he “had no specific recollection of any stories which depended on the work of private investigators …”

He insisted he was “not aware” of any private investigators “having been found to have engaged in any criminal activity … or of any Daily Mirror employee having any involvement in such law-breaking.” 

Press Gang presents new evidence that further undermines this testimony.

The Daily Mirror was routinely using a controversial private eye in the late 1990s to illegally access confidential information about the rich and powerful.

One of the most dramatic examples — the paper’s decision to break into the bank and building society accounts of a powerful Bank of England committee … 

♦♦♦

IT’S A WEDNESDAY morning at the Daily Mirror offices in Canary Wharf.

On the 22nd floor of the big skyscraper — One Canada Square —  the morning conference is under way.

The meeting is taking place in editor Piers Morgan’s corner office.

The next day’s paper — Thursday, 8 October 1998 — is being planned.

One of the items on the agenda: how the paper will cover tomorrow’s lunchtime announcement from the Bank of England on interest rates.

It’s important because a fall in the rate — currently 7.5 per cent — is widely expected.

It will be the first for many years.

The decision — to be made by the nine members of the Bank’s monetary policy committee — could affect the pockets of many Daily Mirror readers.

TARGETS THE NINE members of the Bank of England's monetary committee in 1998. All were the subject of an illegal

TARGETS
MEMBERS OF the Bank of England’s monetary committee in 1998. Many of them were the subject of an illegal “dark arts” operation organised by Piers Morgan’s Daily Mirror. Although the attack has been mentioned by other journalists — including Nick Davies (Guardian) and Robert Peston (BBC) — this is the first time the full story has ever been told.
Photo: PA

For Thursday’s paper, it’s already been decided the Mirror will find out about the mortgages of the nine committee members.

But there’s an elephant in the room.

Few in the conference will acknowledge it.

But some know collecting the information will involve breaking the law.

None of the members of the monetary committee will volunteer information about their mortgages. 

So the paper will have to resort to illegal techniques to obtain them.

These methods — later they’ll include phone hacking — are known as the “dark arts”. 

The task’s been handed to the paper’s resident “dark arts” master — senior news reporter Gary Jones. 

He served his apprenticeship on the News of the World.

He was the paper’s crime reporter when Piers Morgan was News of the World editor in 1994 and 1995. 

Jones followed Morgan to the Daily Mirror in 1996. 

Jones knows exactly who to contact to find out about the mortgages of the Bank of England committee members.

This is the private eye Jonathan Rees. 

Rees is a partner in Southern Investigations, a London firm specialising in acquiring illegal information. 

BENT PRIVATE EYE IN JONATHAN REES, the Daily Mirror is choosing a controversial character to do its dirty work. He's a long-standing suspect in the 1987 murder of his business partner Daniel Morgan. In 2009 he will stand trial for the murder only for the case to collapse in 2011. By then he will have served a seven year prison sentence for conspiring to plant cocaine on an innocent woman. See The No 1 Corrupt Detective Agency for more details. Photo: PA

BENT PRIVATE EYE
IN JONATHAN REES, the Daily Mirror is choosing a controversial character to do its dirty work. He’s a long-standing suspect in the 1987 murder of his business partner Daniel Morgan. In 2009 he will stand trial for the murder only for the case to collapse in 2011. By then he will have served a seven year prison sentence for conspiring to plant cocaine on an innocent woman. See The No 1 Corrupt Detective Agency for more details.
Photo: PA

By lunchtime on Wednesday, 7 October Rees has come up with the goods. 

Gary Jones and reporter Oonagh Blackman get together to write the story …

♦♦♦

THE NEXT day’s Daily Mirror carries an exclusive investigation.

Under the by-lines of Oonagh Blackman and Gary Jones, the story states:

“As millions sweat on a home loans cut, we reveal it’s
ALL RATE FOR SOME
Homeowners will have their mortgage rate fixed today by financiers so wealthy that they won’t be affected if it rises or falls.”

The piece reveals five members have no mortgage at all.

UNLAWFUL THE MIRROR'S exclusive report by Gary Jones and Oonagh Blackman is based on information obtained by

UNLAWFUL
THE MIRROR’S exclusive report by Gary Jones and Oonagh Blackman is based on information obtained by “blagging” — ringing banks and building societies and pretending to represent committee members. Blagging is a criminal offence under the Data Protection Act.

Some of this information could have come from legitimate sources — such as the government-owned Land Registry. 

But details of mortgages held by three members could only have been obtained unlawfully.

The piece says deputy Governor Mervyn King — who will later become Governor — has a £48,000 mortgage.

His apartment in Notting Hill costs him £400 a month in interest payments.

The Cobham, Surrey home of ex-CIA analyst and businesswoman DeAnne Julius costs £2,500 a month. 

She has a £200,000 mortgage. 

Dutch economist Professor Willem Buiter is paying £685 a month. 

He has an £80,000 mortgage on his cottage in the Bedfordshire village of Great Gransden. 

The paper goes to extraordinary lengths to find out about properties owned by the nine. 

There is some doubt about the extent of committee member Ian Plenderleith’s property near Petworth in West Sussex.

So Jonathan Rees sends an “agent” down to Petworth to make a sketch plan of the grounds.

Shortly after the article appears, the committee cut the interest rate from 7.5 per cent to 7.25 per cent.

SILENCE THERE'S NO mention of the illegal assault on the Bank of England in Piers Morgan's 2005 book, The Insider. His diary entry for 7 October 1998 — the day the attack was being prepared — concentrates on a refusal by the columnist Victor Lewis-Smith to come to lunch ... Photo: PA

SILENCE
THERE’S NO mention of the illegal assault on the Bank of England in Piers Morgan’s 2005 book, The Insider. His diary entry for 7 October 1998 — the day the attack was being prepared — concentrates on a refusal by the columnist Victor Lewis-Smith to come to lunch …
Photo: PA

♦♦♦

FOUR DAYS after the exclusive, Jonathan Rees sends three invoices to the Daily Mirror accounts department.

The total is £1,936.

There is little detail — all relate to “undertaking confidential enquiries”.

But a separate statement is sent to Gary Jones personally.

It’s marked

FOR YOUR INFORMATION ONLY  

This is more revealing.

It shows £361 of the bill is for legitimate purposes.

But it also makes clear that much of the remaining £1,575 is unlawful.

This amount is for nine separate searches of the committee members:

” … identifying their mortgage details as directed.”

The invoice even shows that Rees gave the paper a discount.

Instead of the normal rate of £275 a search, Rees had reduced the price to £175! 

Rees deliberately sends vague invoices to the Mirror accounts department because he knows he’s breaking the law.

So does Gary Jones.

In the Mirror newsroom is a copy of the reporters’ legal bible — McNae’s Essential Law For Journalists.

DARK ARTS MASTER GARY JONES is one of the key figures in the Daily Mirror's involvement with illegal news-gathering. In the first part of

DARK ARTS MASTER
GARY JONES is one of the key figures in the Daily Mirror’s involvement with illegal news-gathering. In the first part of A Pretty Despicable Man, Press Gang outlined his extensive use of the private eye Steve Whittamore in the early 2000s. Jones — now executive editor of the Sunday Mirror — has never replied to any of our questions …

It includes a chapter on the Data Protection Act (DPA).

The DPA had been amended by the Criminal Justice and Public Order Act of 1994 to create three new criminal offences:

“— procuring the disclosure of data covered by the … Act

— knowing or believing this to contravene the Act

— or offering to sell the data or information extracted from it.”

The Mirror has already published two separate articles about police officers charged with offences under the Data Protection Act.

A year before the assault on the Bank of England, the paper carries the conviction of a masonic police constable from Wiltshire.

He’d checked the Police National Computer to find out the identity of a fellow mason’s lover.

More evidence that Rees and Jones knew they were breaking the law was to emerge in 1999.

Scotland Yard detectives secretly bugged Rees’ office in south London.

Police listened as Rees and Jones argued about the amount of detail going into invoices to the paper.

The Mirror accounts department want more information.

Rees is adamant he isn’t going to give it:

” … because what we are doing is illegal, innit?”

“I don’t want people coming in and nicking us for criminal offences …”

All of the information in this account comes from documents held by Scotland Yard.

There’s no evidence detectives ever considered prosecuting Jonathan Rees and Gary Jones.

♦♦♦

TWO MONTHS after the operation against the bank of England, the Daily Mirror has another bank in its sights.

This time it’s Coutts & Co — bankers to the Royal Family.

The target is the Queen’s cousin, Prince Michael of Kent.

His commercial activities are handled by a private company — Cantium Ltd — which banks at Coutts HQ in the Strand.

Once again, the private eye involved is Jonathan Rees.

And his contact at the paper is Gary Jones.

Rees has already written to Jones giving numbers of three of the company’s Coutts accounts.

ROYAL BANKERS THE HEADQUARTERS of Coutts & Co in the Strand, London. The Daily Mirror's blagger had no trouble getting the details of three accounts belonging to the Queen's cousin, Prince Michael of Kent. Photo: Rebecca Television

ROYAL BANKERS
THE HEADQUARTERS of Coutts & Co in the Strand, London. The Daily Mirror blagger had no trouble getting the details of three accounts belonging to Prince Michael of Kent, the Queen’s cousin.
Photo: Rebecca Television

Now Rees asks John Gunning — of his team of “blaggers” — to ring the bank pretending to represent Prince Michael.

(Gunning will later be caught trying to blag confidential information out of BT.

In 2006 he’ll be convicted and fined £600.)

The next day — 26 January 1999 —  Prince Michael of Kent is on the front page of the paper with the headline:

PRINCE’S BANK CRISIS

The story says the company’s bank accounts are overdrawn to the tune of £220,000. 

It claims the overdraft is unauthorised — and that Coutts has frozen the accounts.

The operation against the Prince costs the Mirror £546.37.

In April 1999 the Scotland Yard bug in Jonathan Rees’ office picks up a phone call about this story.

The police note says Rees has been told Prince Michael is suing the Daily Mirror.

“The legal people wanted [Rees] to verify the information and state how he obtained it.”

Rees refuses.

In June 1999 — unable to prove its allegations without revealing the information is illegally obtained — the Mirror is forced to climb down.

The paper says

“… none of the accounts of Prince Michael … have been frozen or suspended and there have never been any unauthorised overdraft balances on any of those accounts.”

The Mirror adds:

“We accept that our original allegations were untrue …”

On this occasion, Scotland Yard did consider the case to see if any criminal offences had been committed.

A report seen by Press Gang states:

“The relevant evidence shows that Rees obtained personal data — the account numbers of Cantium — and then sold that information to Gary Jones.”

“The relevant offence … is covered by Section 55 [4] Data Protection Act … — Selling Personal Data.”

“This offence may be capable of proof.”

No further action is ever taken by the Metropolitan Police.

♦♦♦

IN JANUARY 1999 Prince Michael of Kent isn’t the only Royal in the Mirror’s frame.

Earlier the same month, it’s the Queen’s third son — Prince Edward.

He’s just become engaged to Sophie Rhys-Jones.

The Mirror orders “financial / company information on” the Prince and his new fiancée.

The Prince’s television production company —  Ardent Productions — has its accounts at Coutts. 

On January 5 Rees sends Gary Jones a bill for £339.57 for obtaining Ardent Productions’ “bankers details”. 

On January 12 Jones gets another bill — for £446.49.

This is for providing “financial / company information” on “R-JH PR, Ardent Productions”.

On this occasion, the blagger is John Gunning.

He targets Coutts and Lloyds Bank.   

At the time, Sophie Rhys-Jones is running a PR firm with the publicist Murray Harkin.

The business banks with Lloyds in the City of London. 

BLAGGED SOPHIE RHYS-JONES and Murray Harkin were partners in the public relations business RJH PR. Harkin remembers getting a call from Lloyds Bank during this period.

BLAGGED
SOPHIE RHYS-JONES and Murray Harkin were partners in the public relations business RJH PR. Harkin confirmed getting a call from Lloyds Bank during this period. “I was told they knew someone had successfully — after many attempts, perhaps as many as 26 — guessed my password and obtained confidential information.”
Photo: PA

John Gunning invoices Jonathan Rees.

His bill contains details of Lloyds Bank account number 121131 — the account of RJH PR — and its credit balance: £9,761.34.

Gunning even manages to obtain details of a personal account of Sophie Rhys-Jones’ at the same branch.

This account has a zero balance.  

None of this information ever appears in the Mirror.

It’s a fishing expedition.

But the Scotland Yard assessment of the case — seen by Press Gang — is clear criminal offences have been committed:  

” … the detail of Rhys-Jones’ bank account — both business and personal — prove evidence of procuring the disclosure to another of personal data.”

Rees “… also commits the offence of selling the information …”

There is no mention of Gary Jones — the man who commissions the criminal activity.

The report concludes:

“It is obvious that additional enquiries would have to be made to confirm details but the basic points to prove are present.”

Scotland Yard takes no further action. 

A spokeswoman for Prince Edward and Sophie, Countess of Wessex declined to comment. 

Murray Harkin told Press Gang he will be instructing solicitors to ask the Metropolitan Police to release the documents it holds.

He added:

“if a criminal offence has been undertaken then I believe that the people responsible should be accountable.”

The Daily Mirror’s long-standing comment on the use of Jonathan Rees is that “many years ago some of our journalists used Southern Investigations.”

“They were last used in 1999.”

“Trinity Mirror’s position is clear. Our journalists work within the criminal law and the PCC code of conduct.”

SCOTLAND YARD THE DOCUMENTS on which this article is based come from the Met's Operation Two Bridges which targeted Jonathan Rees in 1998-1999. They were first leaked in 2002 by senior figures in the Met to the former BBC reporter Graeme McLagan after Rees was gaoled for conspiring to plant drugs on an innocent woman. Since then many reporters have also obtained copies of the material. Photo: Rebecca Television

SCOTLAND YARD
THE MET have been sitting on the documents used in this article ever since 1999.  They come from Operation Two Bridges which targeted Jonathan Rees in 1998-1999. Some of them were first given by senior figures in the Met to the then BBC Home Affairs correspondent Graeme McLagan in 2002 after Rees was gaoled for conspiring to plant drugs on an innocent woman. 
Photo: Rebecca Television

♦♦♦

THE MIRROR’S relationship with Jonathan Rees was shattered on 29 September 1999.

On that day, detectives arrested Rees in connection with a conspiracy to deprive an innocent woman of her child.

Police had bugged Rees’ office in Thornton Heath, south London and heard the plot unfold.

A client of Rees was involved in a custody battle with his estranged wife.

Rees suggested arranging with a corrupt police detective to plant cocaine in her car.

Police were watching as the drugs were planted and the woman arrested.

Then they pounced.

In raids across London, detectives gathered the evidence on which this article is based.

Rees was gaoled for six years for his part in the cocaine conspiracy.

When he appealed against the length of his sentence, it was increased it to seven.

Scotland Yard also wanted to charge Sunday Mirror reporter Doug Kempster for paying a police officer for confidential information.

Piers Morgan had no connection with the Sunday Mirror.

The CPS decided not to prosecute.

Despite this scare, the Daily Mirror’s addiction to the “dark arts” continued.

PIERS MORGAN THE FORMER Daily Mirror editor in happier times with his old friends Andy Coulson (gaoled) and Rebekah Brooks (acquitted). Six days ago — on April 21 — Morgan was interviewed by Scotland Yard detectives from Operation Golding about phone hacking while he was Mirror editor. This followed an earlier interview at the end of 2013. He was not arrested on either occasion. As well as his ITV programme Life Stories, Morgan is also US

PIERS MORGAN
THE FORMER Daily Mirror editor in happier times with his old friends Andy Coulson (ex-editor News of the World: gaoled) and Rebekah Brooks (ex-editor The Sun: acquitted). Six days ago — on April 21 — Morgan was interviewed under caution by Scotland Yard detectives from Operation Golding investigating phone hacking while he was Mirror editor. This followed an earlier interview at the end of 2013. He was not arrested on either occasion. As well as his ITV programme Life Stories, Morgan is currently US “editor-at-large” for the Daily Mail online website. He does not comment on Press Gang articles …
Photo: Richard Young / Rex

The paper simply turned to another private eye — Steve Whittamore.

Illegal news-gathering continued for a further three years until Whittamore was arrested in 2003.

For more on this, see the Press Gang article Whodunnit? 

♦♦♦

Published: 27 April 2015
© Press Gang 

♦♦♦ 

NEXT
DOWN IN THE GUTTER
A FORENSIC examination of Piers Morgan’s celebrated appearance on Desert Island Discs in 2009. He told presenter Kirsty Young phone hacking was one of the “down in the gutter” tactics used on the Daily Mirror.

What he didn’t tell her was that she, too, had been a target of the paper’s “gutter” tactics. In 1998 the paper mounted a surveillance operation to prove she was having an affair with a married man.
The story is also pregnant with the possibility it was based on phone hacking …

 ♦♦♦

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ROGUE JOURNALISTS & BENT COPPERS

February 19, 2015

corrupt_header_02

IN JULY last year, Home Secretary Theresa May set up an independent panel to investigate the unsolved murder of Daniel Morgan.

She appointed Baroness Nuala O’Loan, former Northern Ireland Police Ombudsman from 2000 to 2007, to head the inquiry.

The Home Secretary said:

“The remit of the Panel is to shine a light on the circumstances of Daniel Morgan’s murder, its background and the handling of the case over the period since 1987.”

“Serious allegations of police corruption have surrounded the investigations into the murder of Daniel Morgan.”

THE STORY SO FAR ... JONATHAN REES (left) the partner of the murdered Daniel Morgan — found with an axe buried in his face in a pub car park in 1987 —has long been a suspect in the case. The previous article, An Axe To Grind, told of the dispute between the two men over Rees' claim that he had been mugged of £18,000. One of the first police officers on the murder investigation was detective sergeant Sid Fillery (right) who did not tell his superiors he was a personal friend of Rees. At the inquest, a witness sensationally claimed Rees told him he was looking for someone to murder his partner. It was also revealed that Sid Fillery had retired from Scotland Yard — and stepped into the dead Daniel Morgan's shoes as Rees' new partner. In 2008 Rees and three other men were charged with the murder and Fillery with perverting the course of justice but the case never reached a jury, finally collapsing in March 2011. Although the judge, Mr Justice Maddison, noted that police had "ample grounds to justify the arrest and prosecution of the accused", all five defendants have launched a £4 million compensation case against the Metropolitan Police Service. Photos: PA

THE STORY SO FAR …
JONATHAN REES (left) the partner of the murdered Daniel Morgan — found with an axe buried in his face in a pub car park in 1987 — has long been a suspect in the case. The previous article, An Axe To Grind, told of the dispute between the two men over Rees’ claim that he had been mugged of £18,000. One of the first police officers on the murder investigation was detective sergeant Sid Fillery (right) who did not tell his superiors he was a personal friend of Rees. At the inquest, a witness sensationally claimed Rees told him he was looking for someone to murder his partner. It was also revealed that Sid Fillery had retired from Scotland Yard — and stepped into the dead Daniel Morgan’s shoes as Rees’ new partner. In 2008 Rees and three other men were charged with the murder and Fillery with perverting the course of justice but the case never reached a jury, finally collapsing in March 2011. Although the judge, Mr Justice Maddison, noted that police had “ample grounds to justify the arrest and prosecution of the accused”, all five defendants have since launched a £4 million compensation case against the Metropolitan Police Service.
Photos: PA

“I have made it clear that the Independent Panel should leave no stone unturned in its pursuit of the truth.”

This was, in fact, Theresa May’s second attempt to get the process under way.

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THIS 3,800 word article is the second instalment of an investigation that started more than a decade ago.
For 30 years the Daniel Morgan murder was largely ignored by the UK newspapers and broadcasters.
In part, this was because the News of the World was in a commercial relationship with Southern Investigations.
Press Gang is independent and does not carry advertising. It runs at a loss and the only source of income is donations.
If you feel articles like Rogue Journalists & Bent Coppers should see the light of day, you can make either a one-off gift or make a commitment to a small monthly donation.

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She’d originally set up the inquiry in May 2013 but the judge she chose to head it — Sir Stanley Burnton — controversially stepped down six months later for what were described as “personal reasons”.

In fact, he lost the confidence of some of his fellow panel members because he took decisions without consulting them.

One of the areas Baroness O’Loan will be examining is the relationship between tabloid journalists and police detectives.

In this second part of The No 1 Corrupt Detective Agency, Press Gang charts the rise of Southern Investigations as one of the market leaders in the illegal sale of valuable confidential Scotland Yard information.

Some of this story is already in the public domain.

But Press Gang has also obtained dramatic new material from police sources.

These contacts received no payment.

♦♦

AFTER THE sensational events surrounding Daniel Morgan’s murder died away, Southern Investigations began to expand a profitable part of the business.

The dead man’s former partner Jonathan Rees and retired police detective sergeant Sid Fillery became one of the major clearing houses of confidential information provided by corrupt police officers.

They sold the information to Britain’s tabloid press, especially the News of the World.

DANIEL MORGAN THE UNSOLVED murder of Daniel Morgan has cast a long shadow on the reputation of Scotland Yard. As Tory MP Tracey Crouch has said: "There is something about the Daniel Morgan murder that makes the Establishment very nervous ... it is important we find out what it is and get justice for Daniel and his family." Photo: Morgan Family

DANIEL MORGAN
THE UNSOLVED murder of Daniel Morgan casts a dark shadow on the reputation of Scotland Yard. As Tory MP Tracey Crouch has said: “There is something about the Daniel Morgan murder that makes the Establishment very nervous … it is important we find out what it is and get justice for Daniel and his family.”
Photo: Morgan Family

Guardian reporter Nick Davies, in his book Hack Attack, stated:

“In a single year, 1996-97, the News of the World paid Southern a total of more than £160,000.”

Fillery later gave a revealing interview about the agency’s activities for the 2004 book Untouchables.

“Sid Fillery,” wrote authors Michael Gillard and Laurie Flynn, “is a big jovial, Toby jug of a man.”

“With sad spaniel’s eyes and a laugh as large as the London Palladium, he seems on first impressions as if he could have stepped out of an episode of Dixon of Dock Green.”

Fillery said one of the agency’s key contacts was News of the World reporter Alex Marunchak.

In 1989, two years after the murder of Daniel Morgan, Marunchak came to the Victory pub in Thornton Heath to talk to the partners about doing business with the paper.

Rees and Fillery quickly built up a profitable business selling information to News of the World reporters.

They were even involved with the paper’s now-disgraced investigative reporter Mahzer Mahmood.

On one occasion, Fillery dressed up as an English private secretary while Mahmood played his role of the ‘fake sheik’.

They were also involved in the story about Paddy Ashdown’s affair with a House of Commons secretary.

Documents stolen from the office of the Liberal politician’s solicitor were being touted around Fleet Street.

Southern Investigations were asked by Alex Marunchak to meet the man who was trying to sell them.

But a corrupt Scotland Yard detective, Duncan Hanrahan, who was in the Southern Investigations office at the time, sabotaged the meeting.

Hanrahan had been one of the detectives who “investigated” the robbery of Jonathan Rees back in 1986 when muggers allegedly took £18,000 off him.

(See Part One: An Axe To Grind for more on this.)

CORRUPT COPPER DUNCAN HANRAHAN came to grief when he was caught red-handed trying to corrupt a member of Scotland Yard's anti-corruption team. In 1999 he was gaoled for eight years and four months after pleading guilty to 11 offences, including conspiracy to pervert the course of justice. Photo: PA

CORRUPT COPPER
DUNCAN HANRAHAN came to grief when he was caught red-handed trying to corrupt a member of Scotland Yard’s anti-corruption team. In 1999 he was gaoled for eight years and four months after pleading guilty to 11 offences, including conspiracy to pervert the course of justice.
Photo: PA

Authors Gillard and Flynn say Hanrahan told them he had a grudge against Marunchak after he gave him information which turned up in another newspaper.

Hanrahan believed Marunchak, instead of using the story in the News of the World and paying him, had given the information to a rival newspaper and pocketed the proceeds himself.

In retaliation, Hanrahan tipped off the City of London police who got to the rendezvous with the man selling the Ashdown documents before Southern Investigation’s man could get there.

♦♦♦

IN THE 1990s, Southern Investigations were asked to investigate allegations that some Murdoch journalists were moonlighting and selling information to rivals.

At the same time, the News of the World had spies on its main tabloid rivals.

In 1994, for example, Piers Morgan was News of the World editor.

In his book The Insider, Morgan wrote:

“… we have one of the Sunday Mirror’s journalists on our pay roll, bunging him £250 a week for a rundown of their stories, and more if he gives us a big one.”

“It’s a disgrace, of course, and totally unethical.”

“But very handy.”

“To make it even more amusing, he’s their crime correspondent.”

“We also, unbelievably, have a similar source on the Sunday People, a secretary who does the same for a bit less money.”

“So for under £500 a week we always know what our competitors are doing.”

In November 1995, when Piers Morgan became editor of the Daily Mirror, he moved against the spies.

“The Sunday Mirror journalist and the Sunday People secretary have been fired.”

“I’d given them a month to stop and incredibly they had just carried on.”

“So I fired them.”

TABLOID SPIES PIERS MORGAN was editor of the News of the World when the paper was paying spies on rival Mirror group papers.  Photo: PA

TABLOID SPIES
PIERS MORGAN was editor of the News of the World when the paper was spying on rival Mirror group papers.
Photo: PA

As the 1990s progressed, the links between the News of the World reporters and Southern Investigations deepened.

In 1996, Alex Marunchak and Greg Miskiw, another News of the World reporter, became directors of an import / export company called Abbeycover.

Abbeycover, which apparently imported alcohol from eastern Europe, had its registered address at Southern Investigations’ Thornton Heath offices.

(In July 2014 Greg Miskiw was given a six months prison sentence after pleading guilty to phone hacking in the same trial that saw the conviction of Andy Coulson.)

And the money wasn’t just flowing from the News of the World — Southern Investigations were also paying Marunchak for what it called “consultancy services”.

In 1998, for example, the News of the World reporter was allegedly paid hundreds of pounds.

No-one is prepared to say what the reporter did in return for these “consultancy services”.

There have also been allegations that his children’s school fees were occasionally paid by the agency and that his credit card was cleared by Rees and Fillery.

Marunchak denies all these allegations (see note 4).

♦♦♦

IN THE late 1990s Scotland Yard made a determined bid to stop tabloid reporters corrupting serving officers to get their hands on confidential police information.

Its secret anti-corruption team, CIB3, targeted Southern Investigations in Operation Two Bridges (originally called Operation Nigeria).

There was evidence that a group of corrupt serving and retired police officers were passing valuable information from inside Scotland Yard to the agency.

BUGGED JONATHAN REES caught by secret police cameras outside the offices of Southern Investigations. The premises had also been broken into and bugs planted ...  Photo: PA

BUGGED
JONATHAN REES caught by secret police cameras outside the offices of Southern Investigations. The premises had also been broken into and bugged …
Photo: PA

At the same time, the murder of Daniel Morgan remained unsolved and the family’s campaign against the Metropolitan Police was embarrassing the force.

“I find it incredible that it took ten years for the Met to install a bug in their offices — why wasn’t it done years earlier?” asks Alastair Morgan.

In his book, Bent Coppers, former BBC reporter Graeme McLagan noted:

“Southern [Investigations] were also starting to try and undermine the Yard’s crackdown on corruption by spreading stories and rumours about some of those involved with it…”

In June 1999 CIB3, the Met’s anti-corruption unit, launched Operation Two Bridges.

They installed a bug in the offices of Southern Investigations in the south London suburb of Thornton Heath.

Documents written by anti-corruption detectives were later leaked to McLagan.

One of these stated:

“For a considerable period of time, there has been much spoken about DS Sid Fillery and his business partner … Rees being involved in corrupt activities involving serving police officers.”

Another stated:

” … the intelligence indicates that Fillery and Rees are corrupters of police officers and participants in organised crime.”

Rees and Fillery, the report went on:

“… are alert, cunning and devious individuals who have current knowledge of investigative methods and techniques which may be used against them.”

“They use some of the techniques in their own daily activities.”

Between June and September 1999, anti-corruption detectives monitored the day-to-day business of the detective agency.

Officers listened as Southern Investigations obtained information about the royal family from police officers to sell to newspapers.

Transcripts revealed that News of the World reporter Alex Marunchak was one of the agency’s major clients.

In one phone conversation, in July, Rees said the paper owed Southern Investigations £7,555.

In this period the agency sent 66 invoices to the News of the World — worth £13,000 — all but one of them addressed to Alex Marunchak.

ALEX MARUNCHAK A KEY News of the World executive for several decades, Marunchak was an important customer for Southern Investigations.  Photo: BBC

ALEX MARUNCHAK
A KEY News of the World executive for several decades, Marunchak was an important customer for Southern Investigations. Marunchak comes from a Ukrainian family and for many years acted as an interpreter for Scotland Yard.
Photo: BBC

In September 2002, Graeme McLagan wrote an article for the Guardian.

He revealed that Rees had sold information to News of the World reporter Alex Marunchak about the criminal Kenneth Noye, convicted of the M25 road rage murder.

When McLagan asked Marunchak if he disputed that he had bought information from Rees, Marunchak said:

“You haven’t heard me admit it.”

♦♦♦

ONE OF the corrupt police officers who was bugged talking to Southern Investigations was a detective constable called Tom Kingston.

He was later gaoled for three and a half years for stealing and selling amphetamines.

The bugs revealed Kingston had a police contact who was prepared to sell information.

“It took anti-corruption detectives little effort,” wrote McLagan in his book Bent Coppers, “to work out that Kingston’s contact was one of his best friends, and that he was passing, through the suspended detective, sensitive information from a confidential police publication called the Police Gazette.”

“Kingston was then selling it to a reporter with a Sunday tabloid newspaper, a regular visitor to Southern Investigations.”

McLagan did not name this journalist but Press Gang has established it was Doug Kempster, then a reporter on the Mirror-owned Sunday Mirror.

Before joining the Mirror stable in 1996, Kempster had worked for the News of the World.

McLagan did not name the police officer but Press Gang understands it was Paul Valentine, at the time attached to the Special Escort Group based in Barnes.

In 2002 McLagan asked Kempster, who was working as a government press officer by then, about his links with Southern.

Kempster told him:

“It’s something we just don’t comment on.”

Some of the information obtained by Kempster also found its way to another journalist, Gary Jones on the Daily Mirror.

Jones also bought information directly from the agency.

(Jones will be familiar to Press Gang readers from the Whodunnit? article in the series about Piers Morgan, A Pretty Despicable Man.

Jones was the News of the World crime reporter whose contacts gave him access to a confidential Scotland Yard report in 1994.

This sensationally revealed that Princess Diana had been making anonymous phone calls to London art dealer Oliver Hoare.

GARY JONES A FORMER News of the World crime reporter, Jones followed Piers Morgan to the Daily Mirror. Today, he's a senior executive editor at the Mirror Group. He's always declined to talk to Press Gang.  Photo: Rebecca Television

GARY JONES
A FORMER News of the World crime reporter, Jones followed Piers Morgan to the Daily Mirror. He was one of the most important customers of Southern Investigations. Currently a senior executive editor at the Mirror Group, he’s always declined to talk to Press Gang
Photo: Rebecca Television

It is not known if Southern Investigations were involved in this tale.)

In July 1999 Rees and Kingston were overheard discussing an officer in the diplomatic protection squad whose firearms certificate was withdrawn because he was taking steroids.

The information led to an article written by Gary Jones.

In March 2011 the BBC Panorama programme uncovered another extract from the transcripts generated in the bugging operation at Southern Investigations.

The programme revealed that, in July 1999, there was an angry exchange between Rees and Gary Jones of the Daily Mirror.

The reporter was under pressure from his accounts department to give more details about the payments he was authorising to Southern Investigations.

Rees insisted that he wasn’t going to provide any more details:

“What we’re doing is illegal, isn’t it?” he said.

“You know I don’t want people coming in and nicking us for criminal offences.”

♦♦♦

JONATHAN REES was given the codename “Avon” during the bugging operation of Southern Investigations.

The transcripts show the relationship between Alex Marunchak of the News of the World and the agency was deep but troubled.

On one occasion, in 1999, Marunchak demanded to know what information the agency were selling to his rival, Doug Kempster of the Sunday Mirror.

In a conversation with Sid Fillery, Rees said he told the News of the World reporter it was none of his business.

When Marunchak hinted that if Southern were engaged in illegal activity, the firm risked being raided by the police, Rees took this as a threat.

He told Fillery that, if Southern or any of its contacts were raided by the police, he would tell the News of the World the names of its reporters who were taking backhanders from Southern Investigations:

“I’ll say your fucking paper will get fucking tipped off about who gets backhanders.”

♦♦♦

AS OPERATION Two Bridges unfolded, anti-corruption detectives felt a successful prosecution against Rees and some of his sources would send a powerful shot across the bows of the tabloids.

One report noted:

“It is likely that journalists and private investigators who actively corrupt serving officers would receive a long custodial sentence if convicted.”

“There will be a high level of media interest in this particular investigation, especially when involving journalists.”

“The Metropolitan Police will undoubtedly benefit if a journalist is convicted of corrupting serving police officers.”

“This will send a clear message to members of the media to consider their own ethical and illegal involvement with employees of the Met in the future.”

Operation Two Bridges came to a dramatic but early close because detectives were forced to deal with Jonathan Rees’ attempts to plant drugs on an innocent woman. 

Even so, detectives still felt they had enough to question four suspects about the illegal sale of confidential Scotland Yard information.

Doug Kempster was arrested at his parents’ home, where a page from the Police Gazette was found.

During the later search of Kempster’s own home:

” … the postman delivered a letter in a large brown envelope addressed to Douglas Kempster … containing a short letter from JR [Jonathan Rees] … also containing an original issue of the copy of the Police Gazette …”

Kempster’s response to all questions put to him was:

“No comment”.

Rees was arrested.

RAIDS ANTI-CORRUPTION DETECTIVES from the Met arrested two serving police officers  suspected of selling confidential information to Jonathan Rees and Mirror group journalist Doug Kempster. Photo: Rebecca Television

RAIDS
ANTI-CORRUPTION DETECTIVES from the Met arrested two serving police officers suspected of selling confidential information to Jonathan Rees and Mirror group journalist Doug Kempster.
Photo: Rebecca Television

Rees claimed that the bug in Southern Investigations violated his human rights.

Kingston was arrested at his home.

He later read out a prepared statement denying his involvement in any illegal activity.

The Met officer, Paul Valentine from the Special Escort Group, was also arrested.

He had no comment to make when he was questioned about the corruption allegations.

♦♦♦

IN 2000, the anti-corruption team submitted an advice file to the Crown Prosecution Service.

The report sought advice about whether there was enough evidence to charge the four men — Jonathan Rees, Doug Kempster and serving police officers Tom Kingston and Paul Valentine — with offences under the Prevention of Corruption Act.

The evidence was based mainly on the bugs installed in Southern Investigations in 1999 as part of Operation Two bridges.

In the transcripts, all four suspects were given codenames based on rivers:

Rees is “Avon”

Kempster: “Dart”

Kingston: “Ganges” 

Valentine: “Severn”.

One of the incidents highlighted was the loss of a copy of the Police Gazette in July 1999.

Southern Investigations had given it to Doug Kempster who then gave it to a senior executive on the paper who’d taken it home to read.

Kempster rang Rees to say:

"AVON" CALLING JONATHAN REES: when police searched his his home and office, they found copies of a confidential internal police magazine ... Rees claimed his human rights had been violated. Photo: PA

“AVON” CALLING
JONATHAN REES: when police searched his home and office, they found copies of a confidential internal police magazine. Rees claimed the search violated his human rights …
Photo: PA

“I can’t believe it— he’s fucking thrown it out — the fucking wanker — why did he take it home?”

For legal reasons Press Gang can’t name this executive.

Detective constable Tom Kingston, who was in the office, told Rees that Kempster had to get it back:

” … or else he won’t get any more.”

A couple of hours later, Kempster himself arrived at Southern Investigations.

He agreed to pay £200 to make up for the lost edition of the Police Gazette.

Rees and Kingston then moved on to discuss an identity parade where the M25 road rage murderer Kenneth Noye was due to appear.

They had given this information to Kempster who had published an article in the Sunday Mirror about it.

The price for the information, allegedly, was £400 split £100 for an unnamed police officer with the remaining £300 to be shared between Kingston and Rees.

Other transcripts indicate that the police officer Paul Valentine may have been receiving a monthly retainer of £150 from Southern Investigations.

On another occasion, Kempster visited Southern Investigations and he and Rees discussed the contents of an edition of Police Gazette.

Kempster responds to one article by saying:

“Asians look a lot better dead” and he and Rees joke about a “one-legged nigger.”

The report from the anti-corruption team concludes:

“sensitive police documents have been obtained without authority and passed to journalists for a financial consideration by Rees and Kingston.”

The Crown Prosecution Service decided not to prosecute.

♦♦♦
Published: 19 February 2015
© Press Gang
♦♦♦

 

NOTES
1
There have been recent developments in this affair — see Daniel Morgan page here 
for more details.
2
This article is part two of a series first published on the Rebecca Television website in September 2011.
To view part one, click on An Axe To Grind.
Back in 2011, Rees and Fillery were sent letters outlining the article and asking for their comments. 

Fillery never replied but Rees’ solicitor said:
“Mr Rees has not the spare time to reply to the many questions that have been raised, often on the basis of ill-informed or malicious allegations.”
“Defamation claims are being pursued … in respect of some past publications; and the police have been asked to investigate any use by journalists or others of confidential or forged material improperly released by police officers or other.”
No legal action was taken.
Jonathan Rees’ position has been explored in a Mail on Sunday article which can be read here.
3

This article draws on material provided by the Morgan family as well as by other journalists, including Nick Davies of the Guardian. Former BBC journalist Graeme McLagan devoted a detailed chapter on the murder as early as 2003 in his book Bent Coppers.  It also featured in Laurie Flynn & Michael Gillard’s Untouchables. Several books on the phone hacking scandal have highlighted the key role the murder plays in the saga: Nick Davies’ Hack Attack, Tom Watson MP & Martin Hickman’s Dial M For Murdoch and Peter Jukes’ The Fall Of The House Of Murdoch.
4
Alex Marunchak gave a detailed rebuttal of the allegations made against him in an interview with the Press Gazette website. Read it here.
5
The current Daniel Morgan Independent Panel comprises Baroness Nuala O’Loan (chair), Professor Rodney Morgan (ex HM Chief Inspector of Probation for England and Wales) and Samuel Pollock OBE (chief executive of the Northern Ireland Policing Board).
6

Press Gang editor Paddy French made several programmes on the murder while a current affairs producer at ITV Wales. 

 ♦♦♦

NEXT
THE NO 1 Corrupt Detective Agency continues with Porridge. Jonathan Rees was acquitted of murder and Sid Fillery of attempting to pervert the course of justice. But the Daniel Morgan murder investigation brought them to book for other crimes — Rees for conspiring to plant cocaine on an innocent mother and Fillery of making indecent images of children being sexually abused.

♦♦♦

JOIN THE GANGBUSTERS …
THERE’S A need for a trustworthy website to expose rogue hacks. Press Gang is that outlet — fearless and fair. Join us by becoming a gangbuster and help pay some of our expenses. Just hit the button …

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CORRECTIONS  Please let us know if there are any mistakes in this article — they’ll be corrected as soon as possible.

RIGHT OF REPLY  If you have been mentioned in this article and disagree with it, please let us have your comments. Provided your response is not defamatory we’ll add it to the article.

AN AXE TO GRIND

January 27, 2015

corrupt_header

IN MAY 2013 Home Secretary Theresa May announced a judge-led inquiry into the murder of private detective Daniel Morgan.

Her decision came two years after the prosecution of five suspects collapsed at the Old Bailey.

Five separate police investigations had failed to bring the killers to book.

The Home Secretary said:

“The horrific murder of Daniel Morgan and subsequent investigations were dogged by serious allegations of police corruption.”

This article — the first in The No 1 Corrupt Detective Agency series — lays bare the extraordinary sequence of events that lies behind that statement.

It reads like pulp fiction.

Except it’s true …

♦♦♦

THE STORY starts in the car-park of a pub in south London in 1987.

Private detective Daniel Morgan leaves the Golden Lion in Sydenham and is walking to his car.

It’s just after nine o’clock in the evening.

DANIEL MORGAN Scotland Yard's failure to bring his killer to justice became an enduring stain on its reputation.  Yard. Photo: courtesy of the Morgan family.  Photo: PA

DANIEL MORGAN
SCOTLAND YARD’S  failure to bring the killer of the 34-year-old to justice remains an enduring stain on its reputation..
Photo: PA

He’s carrying crisps for his young children.

A meeting with Jonathan Rees — his partner in the private detective agency Southern Investigations — has just ended.

In the weeks before this meeting, the two men have been arguing about a security operation that went wrong.

Rees arranged to handle the security for a car auction business only to be robbed of more than £18,000 in cash.

The owners of the car auction are not satisfied with Rees’ explanation — that he was mugged — and start legal proceedings to recover their money.

Southern Investigations does not have insurance to carry cash.

Morgan, who didn’t want anything to do with the job, is unhappy that he should have to pay half the bill.

Rees leaves the pub before Morgan.

PRIME SUSPECT  Jonathan Rees has been the prime suspect in the case. He's always denied any involvement and is now suing the police. Press Gang has discovered he's been taken to court by a firm of solicitors over an unpaid legal bill. Photo: PA

JONATHAN REES
ONE OF the prime suspects in the case, Rees has always denied any involvement and is now suing the police. He enjoyed the company of police detectives — some of them later convicted of corruption …
Photo: PA

He’s parked at the front of the building.

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THIS ARICLE is the first instalment of an investigation that started more than a decade ago.
For 30 years the Daniel Morgan murder was largely ignored by the UK newspapers and broadcasters.
In part, this was because the News of the World was in a commercial relationship with Southern Investigations.
Press Gang is independent and does not carry advertising. It runs at a loss and the only source of income is donations.
If you feel articles like An Axe To Grind should see the light of day, you can make either a one-off gift or make a commitment to a small monthly donation.

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When Morgan walks to the car-park, a man attacks the father of two with an axe.

The attack is so ferocious that the axe is buried deep in the dead man’s face.

More than two decades later five men will be charged in connection with the murder.

The prosecution case is that the man who wields the axe is Glenn Vian.

The man who acts as look-out is Gary Vian.

The Vians are Rees brothers-in-law.

He uses them as part-time security guards.

Private detective Jonathan Rees is the bait to get Morgan to the pub.

The man who drives the getaway car is Jimmy Cook, an occasional employee of Southern Investigations.

Retired Scotland Yard detective sergeant Sid Fillery is the last of the defendants.

He will be accused of perverting the course of justice …

♦♦♦

SID FILLERY is one of the key players in the Daniel Morgan scandal.

Fillery is a friend of Rees — and one of the first detectives on the case.

SID FILLERY  Sid Fillery: for four days in 1987 he was a key officer in the Morgan murder investigation. He claimed he left the investigation when it became clear that there was a conflict of interest. His boss, however, said that he ordered him off the inquiry when he discovered he was linked to Rees. Fillery was arrested shortly afterwards but released without charge. In 2002 he was convicted of fifteen counts of making indecent images of children. Photo: PA

SID FILLERY
FOR FOUR days in 1987 the detective sergeant was a key officer in the Morgan murder investigation. He claimed he withdrew when it became clear there was a conflict of interest. His boss, however, said he ordered him off the inquiry when he discovered he was linked to Rees. Fillery was arrested shortly afterwards but released without charge. In 2002 he was convicted of fifteen counts of making indecent images of children.
Photo: PA

He’s based at Catford Police Station — its patch includes the Golden Lion.

For several days he will not tell his bosses that Rees and the dead man were arguing about the car auction robbery.

Fillery does not tell his superiors that he and officers from Catford have been moonlighting as security guards for Rees.

Or that it was Fillery himself who brought the car auction business and Rees together.

Shortly after the murder, Fillery will retire from the police and step into the dead man’s shoes as Jonathan Rees’ new partner.

In 2008 all five men will be arrested in connection with the murder.

But the case never goes to trial — a series of pre-trial hearings results in the court refusing to admit the evidence of prosecution witnesses.

The case finally collapses in March 2011.

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DANIEL MORGAN set up Southern Investigations in 1984.

He’d learnt the business working for the Croydon detective agency Madagans. 

Later he was joined by another private detective, Jonathan Rees.

FLOWERS FOR DANIEL  DANIEL'S OLDER brother Alastair and his mother Isobel lay a wreath at the place where he died. Photo: PA

FLOWERS FOR DANIEL
DANIEL’S OLDER brother Alastair and his mother Isobel lay a wreath at the place where he died.
Photo: PA

But the two men were chalk and cheese. 

Morgan was a hard-working loner with a reputation as a womaniser. 

Rees was sociable and liked to spend time in the pub with his mates — many of them policemen.

Tensions built up between the two. 

Daniel saw himself as a grafter and complained he was doing the lion’s share of the work. 

He talked to his older brother Alastair about these tensions:

“I remember him saying to me once — I drove 40,000 miles last year and that guy hangs around in a bar drinking with his CID mates”.

“He was upset about it”.

Rees liked the company of police detectives — one of his closest friends was Sid Fillery.

The two men were freemasons.

They often attended an unofficial lunch club at the Croydon Masonic Hall for serving and retired police officers and their friends.

It was called “Brothers in Law”.

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THE YEAR before the murder Rees took a job organising the security for a local firm called Belmont Car Auctions in Charlton.

The firm had recently been robbed of £17,000 and wanted better protection at the site.

One of the directors was related to a local policeman who introduced him to Fillery.

Fillery suggested he get in touch with Rees.

Rees recruited police officer friends, including Sid Fillery, to help out during the auctions.

He also employed his brothers-in-law Glenn and Gary Vian.

GLENN VIAN ONE OF the security guards on the Belmont job was Rees' brother-in-law Glenn Vian. He would later be accused of axing Daniel Morgan to death ...  Photo: PA

GLENN VIAN
ONE OF the security guards on the Belmont job was Rees’ brother-in-law Glenn Vian. He would later be accused of axing Daniel Morgan to death …
Photo: PA

One night in March 1986 Rees took £18,000 in takings which he intended to deposit in a Midland Bank nightsafe. 

He said the nightsafe had been superglued shut and decided to take the money home.

He claimed that after he parked his car, he was attacked by two men.

Liquid was sprayed in his eyes and the money stolen. 

He was taken to hospital for treatment.

One of the detectives who investigated the alleged robbery was detective constable Duncan Hanrahan.

Hanrahan — another freemason who attended the “Brothers in Law” club and knew Rees and Fillery — would later be gaoled for corruption.

Hanrahan’s report of the robbery noted: 

“To attack somebody outside his house and get £18,000 … you would have to be the luckiest mugger in the world.” 

DUNCAN HANRAHAN THE DETECTIVE who investigated the mugging reported by Rees. He was later gaoled for corruption. Photo: PA

LUCKY MUGGER
THE DETECTIVE who investigated the robbery said the criminal responsible was the “luckiest mugger in the world”. Duncan Hanrahan was later gaoled on corruption charges unrelated to Rees or Fillery.
Photo: PA

But police inquiries were superficial and the investigation went nowhere. 

No-one was ever charged for the alleged robbery.

Belmont Car Auctions didn’t believe Jonathan Rees’ story — and started legal proceedings to recover its money.

Morgan was furious.

He felt Rees should pay the money rather than Southern Investigations.

The night before the murder, Morgan, Rees and Fillery met at the Golden Lion to discuss the issue.

Off-duty police officers later joined them for a drink.

The next night, after meeting former lover and estate agent Margaret Harrison, Daniel again met Rees at the Golden Lion.

Rees, who had parked in front of the pub, left first.

When Daniel left, he was murdered.

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TWO DAYS after the murder Alastair Morgan went to Catford Police Station.

He wanted to tell them he was convinced the events surrounding the Belmont Car Auction affair were the key to solving the case.

The detective he talked to was detective sergeant Sid Fillery.

Alastair Morgan had no idea that the police officer was a close friend of Rees.

“I remember explaining to him that I thought Daniel may have found out something about that robbery and had been murdered as a result of that.”

GOLDEN LION THE PUB in Sydenham where the murder took place. The night before the murder, Daniel Morgan had met with Rees and Fillery.  Photo: PA

GOLDEN LION
THE PUB in Sydenham where the murder took place. The night before the murder, Daniel Morgan had met with Rees and Fillery.
Photo: PA

“And he said to me — what robbery was that then?”

Fillery has always denied this conversation ever took place.

In fact, Fillery was the first person to interview Jonathan Rees — he also asked Rees to identify the dead man.

Fillery did not tell his superiors that he not only knew about the Belmont Car Auction affair but that he and other officers had been moonlighting for Southern Investigations.

Fillery also visited the offices of Southern Investigations as part of his inquiries.

Later, it became clear that several files, including the one on Belmont Car Auctions, were missing.

Fillery was on the investigation for four days.

The man leading the inquiry, detective superintendent Douglas Campbell, was furious when he discovered Fillery’s connection with Rees.

He arrested Fillery and police constables Peter Foley and Alan Purvis who he believed had also moonlighted on the Belmont Car Auctions security operation.

He also arrested Jonathan Rees and the Vian brothers.

All were later released without charge.

The Metropolitan Police later paid compensation to PCs Foley and Purvis for wrongful arrest.

By the time the inquest took place a year later, Sid Fillery had retired on medical grounds.

He quietly stepped into Daniel Morgan’s shoes as Jonathan Rees’ new partner …

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THE INQUEST was to be one of the most explosive in British history. 

Kevin Lennon, the book-keeper for Southern Investigations, gave sensational evidence.

He said Jonathan Rees told him he wanted Daniel Morgan dead.

KEVIN LENNON THE BOOK-KEEPER at Southern Investigations testified that Jonathan Rees made it clear he wanted Daniel Morgan dead. Photo: ITV

KEVIN LENNON
THE BOOK-KEEPER at Southern Investigations testified at the inquest that Jonathan Rees made it clear he wanted Daniel Morgan dead. A Mail on Sunday article in August 2014 claimed that Lennon later told Rees he’d been pressurised by police — he’d been charged with fraud. However, when ITV Wales talked to Lennon in 2004, he was sticking to his original story … 
Photo: ITV

Lennon told the coroner that Rees “asked me to find someone to kill Morgan.” 

“He asked me this on at least two occasions.” 

“He was of the impression that I knew people who could or would be willing to kill Morgan.”

“On each occasion I attempted to dissuade Rees from considering such a course of action.”

“He was adamant that he wanted Morgan killed.”

In a later conversation at the Victory pub in Thornton Heath he alleged Jonathan Rees told him he’d solved the problem.

“He said words to the effect, ‘Forget about arranging his death, I’ve got it fixed … ‘.”

“He explained that police officers who were friends of his based at Catford were capable and willing to organise it.”

He also said Rees later told him, again in the Victory pub, he had a new partner in mind once Morgan was dead:

Sid Fillery.

“ … Fillery was to take Morgan’s place after his death.”

“He was to get an ill-health pension or medical discharge.”

“He and Fillery were, according to Rees, very close and that nothing would be better to Rees than for Fillery to join in the company.”

It was Lennon who first revealed the fact that Fillery was now working with Rees.

Lennon said that Rees had discussed the murder with his wife Sharon Rees — the sister of the Vian brothers.

She sent the coroner a note to say she wasn’t mentally fit to give evidence. 

The next day she was photographed out shopping by the Daily Mirror.

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THE MAN in charge of the murder investigation also gave evidence.

Detective superintendent Douglas Campbell accepted Fillery’s actions in the days after the murder had seriously undermined the inquiry.

He also told the inquest that Daniel had been talking about blowing the whistle on police corruption in south London.

Campbell added:

“I could find no evidence at all.”

“It was a suggestion that he had a story to sell to a newspaper.”

“I spoke to the other persons concerned.” 

“I even went to the newspaper but if I told you what he was offered you would see it was quite ludicrous.” 

“He was alleged to have been offered £250,000 per story.”

Campbell didn’t reveal the name of the newspaper that Morgan went to. 

Now retired, he’s always declined to be interviewed about the murder investigation.

In fact, the evidence now points to the fact that Daniel Morgan may have approached several papers.

A former private eye who knew the murdered man says he told him he was going to see a reporter on the News of the World.

That reporter was Alex Marunchak and that the story was about police corruption. 

The figure discussed was £40,000 — an enormous sum of money in those days.

ALEX MARANCHAK A KEY editorial figure on the News of the World, the Ukrainian-born crime reporter had strong links with the Met. At the time of the inquest he was also working as a part-time translator for Scotland Yard.  Photo: BBC

ALEX MARUNCHAK
A KEY editorial figure on the News of the World, the Ukrainian-born crime reporter had strong links with the Met. At the time of the inquest he was also working as a part-time translator for Scotland Yard.
Photo: BBC

Marunchak insists he never met the murdered man.

The inquest also heard from Margaret Harrison –  the woman Daniel Morgan met the night of the murder.

She had received more than 60 phone calls from Jonathan Rees in the months leading up to the killing. 

She denied she was having an affair with Rees at the time Daniel Morgan was killed.

Later she and Rees shared a house in south London.

They are still together, co-owners of a property in Weybridge, Surrey.

The inquest jury returned a verdict of unlawful killing.

Alastair Morgan and his family were stunned when the police took no action after the inquest.

They began a long campaign to bring Daniel’s murderers to book.

It’s a campaign that was to drag the Murdoch-owned News of the World into the mystery… 

♦♦♦

NOTES
1
There have been recent developments in this affair — see
http://wp.me/P3kXx7-8K for more details.
2
This article is part of a series first published on the Rebecca Television website in September 2011.
Rees and Fillery were sent letters outlining the article and asking for their comments. 
Fillery never replied but Rees’ solicitor said:
“Mr Rees has not the spare time to reply to the many questions that have been raised, often on the basis of ill-informed or malicious allegations.”
“Defamation claims are being pursued … in respect of some past publications; and the police have been asked to investigate any use by journalists or others of confidential or forged material improperly released by police officers or other.” 
No legal action was taken against Rebecca Television.
3
This article draws on material provided by the Morgan family as well as by other journalists, especially Nick Davies of the Guardian. Former BBC journalist Graeme McLagan devoted a detailed chapter on the murder as early as 2003 in his book Bent Coppers.  It also featured in Laurie Flynn & Michael Gillard’s The Untouchables. Several books on the phone hacking scandal have highlighted the key role the murder plays in the saga: Nick Davies’ Hack Attack, Tom Watson MP & Martin Hickman’s Dial M For Murdoch and Peter Jukes’ The Fall Of The House Of Murdoch
4
Press Gang editor Paddy French made several programmes on the murder while a current affairs producer at ITV Wales. 

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Published: 27 January 2015
© Press Gang
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COMING UP
THE NO 1 Corrupt Detective Agency continues with Rogue Journalists and Bent Coppers. Southern Investigations became the heart of a web of illegal news-gathering with Rupert Murdoch’s News of the World one of its most valuable clients. 

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