Andy Coulson 43, former News of the World editor (NoW), and former aide to the Prime Minister David Cameron, was released on bail after being arrested in a Scotland Yard police officer bribery case and nine hours of interrogation.
Coulson was arrested by detectives of Operation Weeting, set up to investigate phone hacking and spying on the private lives and Voicemails of thousands of people.
Operation Weeting detectives are contacting all those whose personal details were found in documents connected with the NoW seized in 2006 in Operation Elveden that was investigating alleged police corruption and alleged payments to corrupt Scotland Yard police officers.
Rebekah BrooksRebekah Brooks who was ironically in charge of the NoW's own inquiry into the scandal has been replaced by Joel Klein a senior executive of News Corporation.
Mr David Cameron is trying to save face over employing Coulson said that new inquiries were going on into the scandal as to "why did the first police investigation fail so abysmally; what exactly was going on at the News of the World and what was going on at other newspapers" when the answer to this question is obvious. Corrupt police officers in 2006 wanted to avoid unearthing evidence of their own corruption!
Talking about his employment of Coulson as his personal aide the Prime Minister said: "I decided to give him a second chance but the second chance didn't work. The decision to hire him was mine and mine alone."
Labour leader Ed Miliband replying to the Prime Minister's excuse said: "His wholly unconvincing answers of what he knew and when he knew it about Mr Coulson's activities undermine his ability to lead the change that Britain needs."
Ofcom the broadcasting regulator has questioned the proposed takeover of satellite broadcaster BSkyB by Rupert MurdochRupert Murdoch's News Corporation, publisher of the NoW in a statement to the chairman of the Commons Culture Committee asking whether Murdoch is a "fit and proper" person to hold a broadcasting licence.
In America the coverage of the British phone hacking scandal is gathering momentum and Brett Pulley, media correspondent for the Bloomberg news agency in New York, said: “If the fall out were to continue, my goodness, if it were to impact, then we start to talk about it impacting News Corp’s succession plan, so that affects the company globally.”
As the scandal reverberated around the US, BSkyB’s share price dropped to 750p yesterday, down 7.6 per cent at a five-month low and wiping £1 billion off the value of the company.
So it is quite a possibility now that if the bankers get nervous then it may not only be the demise of the 168 year old NoW but Murdoch himself!
Despite Murdoch's plan to destroy the NoW and start a clone, Renault, which spent £266,000 advertising in the News of the World from January to May this year said that a ban on advertising with Murdoch will stay in place "until further notice" and other big advertisers are pulling out too...
Meanwhile in the UK there is a rumour emanating from Scotland Yard that Rupert Murdoch himself maybe arrested and charged.