New Limited is in the headlines again for the wrong reasons – although this time the Conservatives are in the gun as well.
While employed as director of communications for the Conservative Party, former News of the World editor Andy Coulson continued to received hundreds of thousands of pounds from his former employer.
The news was revealed in a report by BBC business editor Robert Peston.
“These payments were part of his severance package, under what is known as a ‘compromise agreement’, explained Peston.
Sources have claimed that Coulson’s contractual leaving pay was paid in instalments until the end of 2007, when he was employed as advisor to David Cameron.
The alleged payments ended before Cameron became prime minister but
the fact one of Cameron's closest advisers was receiving money from
News International after he started work for the Tories will cast doubt
over Coulson's impartiality.
The spotlight will again fall on Cameron's
close ties with the Murdoch media empire because of the revelations.
On Monday night Conservative
party sources insisted they had no knowledge of any
News International payments made to Coulson. This came after checks were made
with every senior party official who might have been involved in hiring
him in 2007.
Peston claims that senior Government members were unaware that Coulson was still receiving payments from News International at the time.
“As I understand it, after Mr Coulson resigned from News International on 26 January 2007, News International said it would pay him his full entitlement under his two-year contract as editor of the News of the World – although the money would be paid in instalments.
“I am told that Mr Coulson also continued to receive his News International work benefits, such as healthcare, for three years, and he kept his company car,” explained Peston.
Coulson took on the role of director of communications for the Conservative Party in July 2007 and was reportedly paid £275,000 a year.
