News Corp on back foot after new claims of phone-hacking knowledge

News International, the British newspaper arm of News Corp, is on the back foot after new claims from its former royal family reporter that phone hacking occurred with the “full knowledge and support” of key members of the now defunct News of the World tabloid.

In a letter published by the Guardian written by News International’s then royal family reporter Clive Goodman in 2007, Goodman says hacking was “carried out with the full knowledge and support” of key members of the paper. The paper says names were blocked from the letter because of an ongoing police investigation.

“The practice was widely discussed in the daily editorial conference, until explicit reference to it was banned by the editor,” the letter to NOTW managing editor Stuart Kuttner and News International executive chairman Les Hinton says. The editor at the time was Andy Coulson, who was then hired as David Cameron’s director of communications. Hinton has since resigned from News Corp.

Goodman, who pleaded guilty to conspiracy to intercept the voicemail messages of three employees of the royal family and was jailed for four months, says members of the paper continued to employ him despite being aware that he would plead guilty to the charge. He has been described by the company as a “rogue reporter”.

The letter adds: “Tom Crane and the editor promised on many occasions that I could come back to a job at the newspaper if I did not implicate the paper or any of its staff in my mitigation plea. I did not, and I expect the paper to honour its promise to me.”

In response, News International has said it recognises the seriousness of materials disclosed to the police and Parliament, and are “committed to working in a constructive and open way with the relevant authorities.”

The release of the letter follows evidence by News Corp chief and chairman Rupert Murdoch, and his son James, at a Parliamentary inquiry into phone-hacking following revelations its victims included the teen murder victim Milly Dowler.

James Murdoch, who runs News’ European division, is now tipped to face further questioning following comments at the hearing that he was unaware of evidence of widespread hacking. Afterwards, two former NOTW executives, Crone and Colin Myer, said they had informed him in 2008 that an email existed which suggested other reporters were implicated.

The letter comes as 2011 fiscal year accounts show Rupert Murdoch’s daughter Elisabeth Murdoch received $US214 million in cash for the purchase of her TV production company Shine from News Corp.

Last week Elisabeth had decided not to join the board as she believed it was not appropriate.