Dialling Murdoch

Murdoch/phone hacking: The UK phone hacking mess is putting more heat on Rupert Murdoch. The suspension of a senior journalist by one of News Corp's London tabloids undermines the paper's claim that the scandal, dating back at least four years, was the work of a single rogue reporter. For the media mogul, who is seeking government approval to expand his UK empire, the twist in this long-running saga adds to a toxic political mix.

News Corp is currently seeking approval for its controversial bid to take full control of BSkyB , the satellite broadcaster in which it already has a 39 per cent stake. The government is days away from announcing whether it will ask the Competition Commission to investigate the possible impact of the deal on the plurality of the media.

Only two weeks ago, News Corp's chances of success received a boost when Vince Cable, the UK business minister, was stripped of responsibility for media policy after he was recorded saying he had "declared war" on Murdoch. The decision on whether to allow the BSkyB takeover will now be taken by culture secretary Jeremy Hunt, who has previously suggested he does not see a problem with the deal.

That victory for Murdoch has now been overshadowed.

True, the latest allegations have yet to be proved, and there is no direct link between tabloid reporters hacking into celebrities’ mobile phones and UK media ownership. But the News of the World’s decision to suspend Ian Edmondson, a senior editor, undermines the paper’s claim that only one of its reporters was aware of what was going on. That, in turn, raises new questions about the involvement of Andy Coulson, who was the paper’s editor at the time of the alleged hacking and is now Prime Minister David Cameron’s director of communications.

News Corp’s failure to draw a line under the scandal challenges the group’s integrity as well as its close links with the ruling Conservative party, which received a vociferous report from Murdoch-owned newspapers in the run up to last year’s election. It also increases the pressure on the government to be seen to thoroughly examine the deal. For Murdoch, the latest developments could not have come at a worse time.