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| Ofcom says Sky 'fit and proper' but raps James Murdoch | |
| (35 minutes later) | |
| UK media regulator Ofcom has concluded that Sky is a "fit and proper" company to hold a broadcasting licence. | |
| Ofcom was investigating the broadcaster in the wake of the phone hacking scandal that engulfed Rupert Murdoch's media empire, which owns 39% of Sky. | |
| However, Ofcom has criticised former Sky chairman James Murdoch, Rupert's son, for his role in the scandal. | |
| Ofcom said his actions "repeatedly fell short of the conduct" expected of a chief executive officer and chairman". | |
| Under the Broadcasting Act 1990, Ofcom has to ensure holders of broadcasting licences are "fit and proper". | |
| Amid allegations that senior executives at News International, Rupert Murdoch's newspaper arm, knew the extent of the phone hacking, Ofcom decided to investigate if the affair had any bearing on Sky. | |
| In a statement on Thursday, Ofcom said: "In July 2011, in light of the public debate about phone hacking and other allegations, Ofcom confirmed that it had a duty to consider whether Sky was fit and proper to continue to hold its broadcast licences. | |
| "Ofcom considers that, on the evidence currently available and having taken into account all the relevant factors, Sky is fit and proper to hold its broadcast licences." | "Ofcom considers that, on the evidence currently available and having taken into account all the relevant factors, Sky is fit and proper to hold its broadcast licences." |
| Ofcom said, however, that "should further evidence become available", it would look at the issue further. | |
| Sky welcomed the decision, saying: "Ofcom is right to conclude that Sky is a fit and proper broadcaster. As a company, we are committed to high standards of governance and we take our regulatory obligations extremely seriously." | |
| 'Difficult to comprehend' | |
| However, the conduct of James Murdoch, who resigned from Sky in April and has since relinquished his role at the UK newspaper group, was questionable, Ofcom concluded. | |
| The regulator said: "Ofcom considers on the basis of the evidence available to date... James Murdoch's conduct in relation to events at NGN [the newspaper group] repeatedly fell short of the conduct to be expected of him as a chief executive officer and chairman. | |
| "However, Ofcom considers that the evidence available to date does not provide a reasonable basis to conclude that James Murdoch deliberately engaged in any wrongdoing." | |
| Nevertheless, Ofcom says: "We consider James Murdoch's conduct, including his failure to initiate action on his own account on a number of occasions, to be both difficult to comprehend and ill-judged. | |
| "We consider that the events... raise questions regarding James Murdoch's competence in the handling of these matters, and his attitude towards the possibility of wrongdoing in the companies for which he was responsible." | |
| Last May, the Commons media committee concluded that Rupert Murdoch was "not a fit person" to run a major international business. However, four of the 10 committee members disagreed, as the MPs split on party lines. | Last May, the Commons media committee concluded that Rupert Murdoch was "not a fit person" to run a major international business. However, four of the 10 committee members disagreed, as the MPs split on party lines. |