New hacking allegations engulf Murdoch papers

Members of a parliamentary committee are expected to hold a hearing today to try to determine whether senior officials of the Metropolitan Police limited the scope of the initial phone-hacking investigation in 2006 because their own phones had been hacked and they feared disclosure of damaging information about their personal lives.

News organizations outside News Corp. have reported that one of the senior officers allegedly padded his expense reports and was involved in extramarital affairs, and another used official frequent-flier miles for personal vacations.

The scandal has cast a harsh light on the unparalleled political influence of Murdoch’s collection of newspapers in Britain and it is taking an increasing toll on Prime Minister David Cameron. The conservative leader’s former communications chief, Andy Coulson, was arrested last week in connection with alleged payoffs to police when he was editor of News of the World.

With political pressure rising, a final decision on the $12 billion BSkyB takeover was delayed after Murdoch withdrew a promise to spin off news channel Sky News. It was seen as a tactical move that forced the British government to refer the bid to authorities charged with enforcing antimonopoly laws, delaying any decision for months.

Analysts said Murdoch’s move amounts to a favor for Cameron, sparing the prime minister the possibility of an embarrassing defeat in the House of Commons.

The takeover will be spared scrutiny during a period of once-unimaginable public criticism of Murdoch’s British operation, News International, fueled by a relentless stream of new allegations of wrongdoing at its properties.