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News International chief James Murdoch rejected allegations Thursday his company behaved like a Mafia organization over the News of the World phone-hacking scandal.

The accusation was put to the son of media tycoon Rupert Murdoch as he faced questions from lawmakers about what he knew and when. It is alleged that his company's newspaper intercepted cellphone calls and messages of almost 5,800 royals, politicians, celebrities and business leaders -- and most controversially of all, a 13-year-old murder victim.

Public outrage over the scandal later led News International to close the best-selling tabloid in July and abandon a bid to take over British broadcaster BSkyB.

Questioning Murdoch about why so little information was shared, Labour Member of Parliament Tom Watson suggested the company operated an "omerta" code of silence. He said the "omerta" was "a group of people who are bound together by secrecy, who together pursue their group's business objectives with no regard for the law, using intimidation, corruption and general criminality."

"Would you agree with me that this is an accurate description of News International in the UK?" Watson asked.

Murdoch replied: "Absolutely not, I frankly think that's offensive and it's not true."

To gasps of amazement from fellow MPs on the Culture, Media and Sport Committee, Watson went on: "You must be the first Mafia boss in history who didn't know he was running a criminal enterprise."

Murdoch rolled his eyes, before saying that comment was "inappropriate."

He said he "disputed vigorously" the version of events described by former News of the World editor Colin Myler and its former legal manager Tom Crone, who both left the company when the tabloid was closed.

Myler and Crone claimed they made Murdoch aware of the contents of the so-called "for Neville" e-mail in 2008, indicating phone-hacking was widespread. The document is known as the "for Neville" e-mail, apparently after its intended recipient Neville Thurlbeck, then News of the World's chief reporter.

CNN's Atika Shubert said Murdoch was caught in a "Catch-22" situation: if he wasn't aware of the extent of phone-hacking when the company paid an out-of-court settlement of $1.2 million to one victim, he could be seen to be incompetent; if he did know about it, it could be regarded there was a cover-up.

Murdoch has maintained he only found about the full extent of phone-hacking by staff and investigators at News of the World in 2010 and was not shown the e-mail.

Asked by Watson if he had misled the committee during his previous high-drama appearance alongside his father in July, Murdoch said: "No, I did not."

He added: "I believe this committee was given evidence by individuals either without full possession of the facts, or now it appears in the process of my own discovery ... it was economical."

Asked if he was accusing Myler and Crone of misleading the committee, Murdoch replied: "Certainly in the evidence they gave to you in 2011 in regard to my own knowledge, I believe it was inconsistent and not right, and I dispute it vigorously." More at http://www.cnn.com/2011/11/10/world/europe/james-murdoch-phone-hacking
-hearing/index.html?hpt=hp_t3

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