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Wall Street Journal blames Beijing troublemaking for US bribery probe Wall Street Journal blames Beijing troublemaking for US bribery probe
(about 4 hours later)
The Wall Street Journal has been investigated by the US government over allegations that its Chinese bureau bribed officials with lavish gifts in return for information, it was reported Sunday. US authorities have investigated the Wall Street Journal over allegations that its bureau in China had bribed government officials with lavish gifts in return for information it could use in articles, the paper reported on Sunday.
An article carried on the newspaper's website said the graft claim was presented to the Journal by the Justice Department as part of a wider probe into alleged phone hacking at UK titles owned by parent firm News Corp. An article carried on the newspaper's website said the accusations were presented to the Journal by the Justice Department as part of a wider inquiry into its parent company, News Corporation, under the Foreign Corrupt Practices Act (FCPA). That inquiry stemmed from the allegations of phone hacking and other illegal activities at the British newspapers owned by News Corp.
That investigation is thought to be winding up, with US authorities preparing the way for settlement talks with Rupert Murdoch's media giant, the paper reported. Meanwhile, the allegation of bribing corrupt officials in China has seemingly been dismissed by News Corp officials as trouble-making by Beijing in retaliation for unfavourable reporting on China. In a statement to the Guardian, a representative of Dow Jones – which publishes the Journal – expressed regret that an "unknown source" had sought to "taint" the newspaper's journalism. The paper reported that US authorities have almost completed their investigations under the FCPA, and were preparing to open talks over a settlement with News Corp over any charges that may result.
Sunday's report by the Wall Street Journal is based largely on the testimony of unnamed News Corp and US government officials. But given that it was published by the website of the newspaper at the centre of the alleged scandal, it can be assumed that the authors' sources were well placed figures. Meanwhile, the owners of the Wall Street Journal appear to believe that the allegations of bribery in China were the result of trouble-making by Beijing in retaliation for unfavourable reporting. In a statement to the Guardian, a representative of Dow Jones – which publishes the Journal – expressed regret that an "unknown source" had sought to "taint" the newspaper's journalism.
The article suggests that those at News Corp believe that the apparent informant who tipped off authorities to alleged bribery was in fact an agent of the Chinese government. Sunday's report by the Wall Street Journal is based largely on the testimony of unnamed News Corp and US government officials. But given that it was published by the website of the newspaper at the centre of the alleged scandal, it carried particular weight.
Nonetheless they carried out an internal investigation that found no evidence of wrong-doing. The article suggests that senior figures at News Corp believe the apparent informant who tipped off authorities to allegations of bribery was in fact an agent of the Chinese government. An internal investigation was launched, which the company said found no evidence of wrong-doing.
The Justice Department informed newspaper bosses of the claim in early 2012. It is not known if US officials are now satisfied with the Journal's explanation regarding the bribery claim or if they have closed that part of the wider probe into activities by News Corp journalists. The Justice Department informed the Wall Street Journal of the claim in early 2012. It is not known if US officials are satisfied with the Journal's explanation regarding the bribery claim. Sunday's article suggests that the newspaper's management is confident about its position.
But Sunday's article suggests that at the newspaper itself, the matter is not thought to be a concern.
In a statement to the Guardian, Paula Keve, spokeswoman for Dow Jones, said: "After a thorough review of our operations in China conducted by outside lawyers and authors, we have not found any evidence of impropriety at Dow Jones. Nor has anyone taken issue with our findings."In a statement to the Guardian, Paula Keve, spokeswoman for Dow Jones, said: "After a thorough review of our operations in China conducted by outside lawyers and authors, we have not found any evidence of impropriety at Dow Jones. Nor has anyone taken issue with our findings."
She added that the newspaper remained "extremely proud" of its "important and impactful coverage out of China and regret that some unknown source has sought to taint that work".She added that the newspaper remained "extremely proud" of its "important and impactful coverage out of China and regret that some unknown source has sought to taint that work".
The newspaper believes the bribery allegation came in relation to the Journal's reporting of events in Chongqing, the province in which disgraced Chinese official Bo Xilai once had a power base.The newspaper believes the bribery allegation came in relation to the Journal's reporting of events in Chongqing, the province in which disgraced Chinese official Bo Xilai once had a power base.
Bo was being tipped as a rising star in the Chinese Communist Party until a scandal focusing on the poisoning death of British businessman Neil Heywood. Bo was being tipped as a rising star in the Chinese Communist Party until a scandal focusing on the poisoning death of British businessman Neil Heywood. Bo's wife, Gu Kailai, was convicted of Heywood's murder in August. The scandal derailed Bo's political career.
Bo's wife Gu Kailai was convicted of Heywood's murder in August. The scandal also scupper any hopes that Bo had of a further ascent in the state apparatus. In its article, the Journal noted that the apparent bribery whistle-blower came to US authorities at around the same time that it was publishing articles about the wealth and corruption of key officials and the ensuing power struggles within the party, as well as the Bo Xilai articles.
The journal sources noted that the apparent bribery whistle-blower came to US authorities at around the same time as their reporters chronicled not only that story, but also published articles on the wealth and corruption of key officials and the ensuing power struggles within the party. The report also comes in the wake of claims that China has hacked into the systems of US newspapers – allegations that are denied by Beijing.
The allegations also come amid claim and counter claim between US newspapers and Beijing regarding the hacking of reporters computers.
The Journal, the Washington Post and the New York Times have all claimed to have been the victims of sophisticated cyberattacks, thought to have been coordinated from Beijing.The Journal, the Washington Post and the New York Times have all claimed to have been the victims of sophisticated cyberattacks, thought to have been coordinated from Beijing.
On Sunday, newly installed Chinese premier Li Keqiang hit back at the claims, stating that his country had been targeted too by hackers and that Beijing did not condone any cyberattack.On Sunday, newly installed Chinese premier Li Keqiang hit back at the claims, stating that his country had been targeted too by hackers and that Beijing did not condone any cyberattack.
"I think we should not make groundless accusations against each other, and spend more time doing practical things that will contribute to cyber-security," he said in remarks at the close of China's annual meeting of parliament."I think we should not make groundless accusations against each other, and spend more time doing practical things that will contribute to cyber-security," he said in remarks at the close of China's annual meeting of parliament.
The Chinese bribery claim came amid a wider investigation by US authorities into activities of News Corp's UK newspapers. According to the Journal, the wider inquiry under the Foreign Corrupt Practices Act, which makes it illegal for firms with a large presence in the US from bribing officials overseas, is expected to conclude soon. The Journal reported that both sides expect that a financial settlement would form part of any agreement.
Allegations of phone hacking and bribing police by tabloid journalists in the UK could potentially violate the US Foreign Corrupt Practices Act. The legislation makes it illegal for firms with a large presence in America from bribing officials overseas.
That Department of Justice probe is expected to conclude soon. The Journal reported Sunday that both sides expect that a financial settlement would form part of any agreement.