Government admits Desmond investigation did not include porn sites

by Claire Billings,, Brand Republic 10-Jun-02, 08:35

LONDON - Fresh concerns as to whether porn baron Richard Desmond is a suitable owner of a national newspaper have been raised as it emerged that the government did not closely examine his porn empire when it considered his bid for the Express titles.

The Department of Trade and Industry has admitted that in its investigation to determine whether Desmond was "fit and proper" to acquire the Daily and Sunday Express, it did not examine the online operations of Desmond's holding company Northern & Shell, which included an interactive porn website called Fantasy121.com.

The news will reignite controversy about a £100,000 donation Desmond made to the Labour Party after he acquired the newspaper group, which also publishes red-top the Daily Star, in November 2000.

It has been suggested in the past that the donation was linked to approval of the deal, because Desmond made the donation in February 2001, just days after the takeover was cleared by Stephen Byers, the former trade and industry secretary.

The news could cause trouble for Prime Minister Tony Blair who, in a TV interview last month, rejected claims that Desmond was an unsuitable Labour Party donor because he had been found "fit and proper" by the DTI report.

The DTI's investigation into Richard Desmond was published last month in an attempt to stem accusations that its approval for the deal was linked to a cash donation.

The report showed that although Desmond's magazine business, which publishes Asian Babes and Skinny & Wriggly among others, was examined by the Home Office and his TV channel, the Fantasy Channel, was scrutinised by the Department of Culture, Media and Sport, his websites were not looked at.

A Home Office official defended the DTI's decision not to look at the websites because the department does not "research business interests beyond those brought to its attention when its advice is sought".

He added that the Office of Fair Trading had only requested an investigation by the DTI into the magazines owned by Desmond.

The government is expected to face calls for Desmond's suitability as a newspaper proprietor to be reassessed.

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