Executives put James Murdoch in the frame over ‘explosive’ hacking e-mail

James Murdoch clashed openly with two former senior staff yesterday after they insisted he was told about an explosive e-mail which proved that knowledge of phone-hacking was more widespread at the News of the World than News International had claimed.

Former legal manager Tom Crone and former News of the World editor Colin Myler told MPs investigating the scandal that they had informed Mr Murdoch about the e-mail.

But commenting after the hearing, Mr Murdoch, who had previously told the Commons culture committee he was not aware of the document, insisted: “I stand by my testimony, which is an accurate account of events.”

Last night News of the World publisher News International accused the two men of giving MPs “unclear and contradictory” evidence.

Mr Murdoch made his remarks after Mr Crone and Mr Myler were subjected to more than two hours of intense questioning by the committee, which may decide to recall Mr Murdoch for further questioning in the light of what was said.

Both men were quizzed about the so-called “For Neville” e-mail, which appeared to blow apart News International’s claim that hacking was the fault of a single rogue reporter, former royal correspondent Clive Goodman, who was paying private investigator Glenn Mulcaire to carry it out.

Mr Crone told the committee he was “certain” he informed Mr Murdoch about the document – a transcript of hacked private information about Professional Footballers’ Association chief executive Gordon Taylor – in a 15-minute meeting, also attended by Mr Myler in 2008.

The “For Neville” e-mail is believed to have been intended for the former News of the World chief reporter Neville Thurlbeck.

Mr Crone told MPs yesterday he could not remember whether he had shown Mr Murdoch a copy of the e-mail during the meeting at which Mr Murdoch had authorised him to reach a settlement with Mr Taylor, who was eventually paid £425,000.

But he told MPs: “It was clear evidence that phone-hacking was taking place beyond Clive Goodman. It was the reason we had to settle the [Taylor] case, and in order to settle the case, we had to explain the case to Mr Murdoch and get his authority to settle, so clearly it was discussed.”

In a statement released after the hearing, News International said: “The company regards evidence given today as having been unclear and contradictory.”

James Murdoch, who was chief executive of News International at the time of the meeting, said: “My recollection of the meeting regarding the Gordon Taylor settlement is absolutely clear and consistent.

“Neither Mr Myler nor Mr Crone told me that wrongdoing extended beyond Mr Goodman or Mr Mulcaire.”

The two men were recalled by the MPs after they publicly challenged Mr Murdoch over his knowledge of hacking.

But committee member Louise Mensch told Mr Crone yesterday his evidence on what Mr Murdoch knew about the “For Neville” e-mail was “clear as mud” while the former News International chief executive had been “crystal clear”.

Mrs Mensch told Mr Crone: “There’s no clarity whatsoever that he was made aware that there was wider involvement at the News of the World.

“The meeting took 15 minutes, there was no subsequent review at the paper, no subsequent action. Nobody said: ‘Hey, this is widespread’.”

Mr Myler was repeatedly pressed to say whether it was made “absolutely clear” to Mr Murdoch that other journalists were involved.

He said: “Mr Murdoch was the chief executive of the company. He’s experienced. I am experienced in what I do. Mr Crone is experienced as a legal manager. I think everybody perfectly understood the seriousness and the significance of what we were discussing.”