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Coulson allegedly paid by News International while working for Tories

Coulson reportedly received hundreds of thousands of pounds in severance pay after he was hired by Cameron.

If David Cameron thought the heat was off him and his decision to hire Andy Coulson, he was wrong, after it has emerged that Coulson was reportedly paid several hundred thousand pounds by News International after he was hired by the Conservative Party.

The BBC's Robert Peston reports that Coulson received cash payments from his former employers until the end of 2007. He took up his post as director of communications at the Conservative party in July of that year, for which he was paid £275,000 a year.

According to sources, Mr Coulson's contractual leaving pay was given to him in instalments until the end of 2007 -- which means he continued to be financially linked to News International for several months of his tenure as David Cameron's main media adviser...

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.

The allegations will raise fresh questions about how closely Coulson was scrutinised before he was appointed as one of Cameron's most senior advisers. It emerged earlier this year that he had not been given the top level security clearance, as would be expected for such a senior official.

All indications are that senior members of the Conservative party had no idea of the arrangement. In February, a party spokesman said he was "100 per cent satisfied" there was no truth in the suggestion. Just last month, on 12 July, a "senior Conservative party official" told the Guardian:

We can give categorical assurances that he wasn't paid by any other source. Andy Coulson's only salary, his only form of income, came from the party during the years he worked for the party and in government.

Tom Watson points out on his blog that this new information would appear to contradict what Coulson told him in the 2009 select committee hearing:

Tom Watson: So your sole income was News International and then your sole income was the Conservative Party?.

Mr Coulson: Yes.

While the period in question ended before Cameron became prime minister, Watson has suggested that the money could count as a donation, which therefore should have been declared, under electoral law. This seems tenuous, but the fact that Coulson was still receiving payment from News International certainly raises questions over his impartiality, and shows serious incompetence on the part of those who were supposed to vet him -- yet another indicator of the cosy relationship between News International and power.

Tags: Andy Coulson

14 comments

ACMJ's picture

Well hardly surprising that the Tory party are not whiter than the white when it comes to corruption , as their main supporters with cash own the media .
It again raises the question , of exactly what information about "hacker" Coulson did Cameron deliberately over look when appointing him as his communications director , so that he could fiddle the tax payer's income for his wages while still being paid by the News Of the World , while the coalition made cuts to public spending .

ACMJ's picture

Of Course it makes defending corruption for the Tory party supporters and the right wing Neo- Conservatives and other right wingers more difficult and using the "Pot and the kettle terms" against labour M.Ps , by supporters of Tory corruption rather lame as most voters will not believe the Tories and makes it worse for the Lib -dems who keep on supporting this shambolic coalition .
As the latest Opinion Polls show that Cameron is still in the Mid 30s (not age wise , though he acts as if he is in his early 30's politically) and of course the other Joint Prime-Minister (oh I mean "deputy Prime-Minister " ) Nick Clegg his sitting on a handsome percentage of between 3% and 9%.
This means if there were a general Election tomorrow David Cameron would need to make a coalition with Ed Miliband to stay in power .

Eddy S's picture

i couldn't care less about coulson, news international has tried to get into bed with left and right and has no morals, in addition the other papers like the mirror seemed to be getting away scott free. piers morgan has done and even admitted to it but is denying it on some obscure technicallity.

what i do care about is media ownership and i would like to ensure that news international cannot buy more BSkyB holdings even though he set it up.

a healthy media is a not too powerful media although we need people of power brought to account when they are doing wrong like the expense scandals, on that subject can jacqui smith not keep herself out of the headlines, thank you.

zhanglili1's picture

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Barny's picture

Yuck yuck yuck. Why are we not dealing with these people robustly and with the full force of the law?

Eileen2's picture

Because they're not poor, not kids and not agin the government. Because they're rich and powerful. Because the "government" is in it up to its neck. Sorted.

Stu's picture

Hardly good news but I don't think it will do much to the Tories. Take a look at MP's... some of them are non-exec's for companies and earn on top of their salary. This wasn't brought to light until a few years back and nothing became of it... they know how to cover their own backs.

swatantra nandanwar's picture

Coulson could say that this golden handshake to keep him quiet was paid to him iinstalments and not a one of severance payment, and the instalments unfortunately clashed when he got the job as Dave's Spin Meister. Confusion explained.
Too much slush money floating around at the top. Difficult to keep track of where all of it is coming from

Jane's picture

I have known many people who have accepted Compensation Agreements for many reasons including resignation at a time of downturn or threat of legal action agaainst their employers. These agreements have been wide ranging and often over a lengthy period (for tax purposes). I have known people who have retained company cars and other perks rather than accept additional sums of money.

Further, some although not all of these agreements have had confidentiality clauses. In addition, one person I knew was told that if he disclosed the agreement it would be cancelled.

This is a non story. It is not usual practice for a new employer to ask what severance agreements had been provided by a previous employer.

I would have thought that Tom Watson and Robert Peston were fully aware of such agreements. Further, any analysis of the exchange between Tom Watson and Andy Coulson above does not confirm anything. Receiving a sum of money on leaving employment is not income per se - not in law anyway. Both men need to be careful as they will lose their credibility and we will take no notice of what they say in the future.

Warren's picture

Is Robert Peston helping News International (and this time Cameron) to bury bad news again? Interesting timing with this scoop to say the least! The comments section of Peston's blog has mysteriously developed a fault this morning.

swatantra nandanwar's picture

Watson obviously wants to milk this story for all its worth, and good luck to him. It keeps him busy. He's the chiwuawua snapping away annoyingly at Dave's ankles, whereas Ed is the Pit Bull going for the throat.

ACMJ's picture

Mrs ML Bonwick-Jones wrote :
"if there were an election tomorrow there would be two losers and we know by the results of the elections last May who they would be."
Yes one of the losers were the Lib-Dems with 52 seats , but Nick Clegg still became Joint Primeminister as Cameron Needed Clegg to become PM . Do tories really believe the way the Lib dem support is going that it will be a repeat ?

Mrs,M L Bonwick-Jones's picture

I Totally agree with Jane.
This is a non story as Jane has said in a similar way, severance pay is similar to that of being made redundant you can recieve compensation benefits for up to 3 years and your present employers do not usually ask about the severance conditions of past employment.
Please Labour just let it go. considering the price of gold is at a record high it could be said that maybe selling our gold was the 'real catastrophic error' of our time, not to mention the many failures and scandals of Labours time in goverment, i see the previous home secretary is in the news today -more dodgy dealings need i say more!
Yes, people are moaning about the goverment, they would be moaning about whoever was in goverment, do people realy think things would be better with Mr Miliband and the very charming Mr Balls in charge, if there were an election tomorrow there would be two losers and we know by the results of the elections last May who they would be.

Pi**sed off's picture

JAIL them all immediately. What has been done IS criminal and because they are wealthy they will not be prosecuted. Then they have the gaul to ask "Why are the dreadful poor rioting, ra ra"?

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