Rupert Murdoch is escorted out of a hotel where he met the familly of murdered teenager Milly Dowler Photograph: Paul Hackett/ReutersRebekah Brooks finally resigned as chief executive of News International as the phone-hacking scandal engulfing News Corporation led Rupert Murdoch to issue an abject apology for what he described as "serious wrongdoing".
Less than 24 hours after insisting the company had made only "minor mistakes" in handling the crisis, a contrite Murdoch arranged a private meeting with the family of Milly Dowler and issued a full-page apology in every national newspaper for his company's behaviour.
The dramatic turn of events came 10 days after the Guardian first revealed that private investigators working for the News of the World had hacked into the phone of the murdered girl during a police investigation into her disappearance. The subsequent outrage and other evidence of wrongdoing has led to the closure of the 168-year-old newspaper, the scrapping of the Murdoch bid for BSkyB and the arrest of several former NoW executives.
Downing Street admitted that David Cameron hosted Andy Coulson at Chequers in March two months after his resignation as the Downing Street director of communications. Labour accused the prime minister of an "extraordinary lack of judgment" in extending an invitation to Coulson, who was arrested last week. The former NoW editor denies any knowledge of phone hacking.
The fallout from the scandal is placing intense pressure on Sir Paul Stephenson, the Met police commissioner. Cameron is said to be furious that Stephenson did not tell him he had hired Neil Wallis, the former NoW deputy editor arrested this week, to advise him on media relations. Stephenson has been asked to explain himself to Theresa May, the home secretary.
It was unclear what had prompted the Murdochs to accept the resignation of Brooks, a 22-year veteran of the company, after steadfastly standing by her in the face of calls for her to go from the leaders of all the main political parties, including the prime minister.
It is understood, however that the decision was not done overnight. Her departure was planned with military precision during a series of family summits and transatlantic phone calls with shareholders over the last few days. The resignation comes just four days before she is due to appear before parliament alongside Rupert and James Murdoch, chairman of News International, to answer questions about the scandal.
In her resignation statement, Brooks said she wanted to clear her name as well as the company's and focus on all "current and future inquiries". She added: "The reputation of the company we love so much, as well as the press freedoms we value so highly, are all at risk."
Hours after this statement, Rupert Murdoch met the parents and sister of Milly Dowler in a hotel in central London. "He was very humbled and very shaken and very sincere," said Mark Lewis, the Dowler family lawyer. "I think this was something that had hit him on a very personal level and was something that shouldn't have happened. He apologised many times. I don't think somebody could have held their head in their hands so many times and say that they were sorry."
Lewis said Milly's parents, Sally and Bob, and her sister, Gemma, had told Murdoch his newspapers "should lead the way to set the standard of honesty and decency in the field and not what had gone on before".
Murdoch had replied that the News of the World's actions were "not the standard set by his father, a respected journalist, not the standard set by his mother", Lewis said.
In a full-page apology in the Guardian and other newspapers today, the News Corp boss says: "We are sorry for the serious wrongdoing that occurred. We are deeply sorry for the hurt suffered by the individuals affected. We regret not acting faster to sort things out."
Such an admission represents a volte face after Murdoch praised the company's handling of the scandal in his first interview on the issue, given to one of his own newspapers, the Wall Street Journal.
The printed apology also suggests that the company will do more to atone for the mistakes of the past. "I realise that simply apologising is not enough," he writes. "In the coming days, as we take further concrete steps to resolve these issues and make amends for the damage they have caused, you will hear more from us."
In his own statement to staff at News International, which still owns the Times, the Sunday Times and the Sun, James Murdoch admitted that the company had made mistakes but praised "one of the outstanding editors of her generation".
Brooks is to be replaced by the head of Sky Italia, Tom Mockridge. Downing Street welcomed her resignation, which relieved some of the pressure on Cameron, who in effect called for her to go last Friday. But the prime minister's spokesman said Brooks should still give evidence to the media select committee next week.
He said of the resignation: "He thinks it's the right decision. He said the other day he would have accepted her resignation."
No 10 hopes that releasing details of the prime minister's contacts with the media and setting out the full scope of the judge-led inquiry will relieve the pressure on him as he attempts to regain the initiative. The prime minister hopes to finalise the membership of the inquiry and agree its terms of reference by the end of next week. But Labour believes that he will continue to face pressure until Coulson's position is clarified.
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