The Metropolitan police commissioner had been widely criticized for his decision to hire Neil Wallis—the former deputy editor of the News of the World who was arrested last week on suspicion of phone hacking—as a personal adviser before news of the scandal broke.
Despite the fact that Wallis was the reason Stephenson quit, in a statement Sunday, the commissioner said his relationship with Wallis had been "maintained for professional purposes and as an acquaintance" and that he had not suspected Wallis of being involved in any hacking.
"I do not occupy a position in the world of journalism; I had no knowledge of the extent of this disgraceful practice and the repugnant nature of the selection of victims that is now emerging; nor of its apparent reach into senior levels," Stephenson said.
"One can only wonder about the motives of those within the newspaper industry or beyond, who now claim that they did know, but kept quiet," he added.
Also on Sunday, Rebekah Brooks—News International chief executive who resigned last week—was arrested by U.K. police investigating phone hacking and bribery at the News of the World. She was questioned most of the day before being released on bail around midnight local time.
Brooks was editor of News of the World in 2002 when it is alleged that the phone of abducted teen Milly Dowler was hacked by the tabloid. Brooks has denied any knowledge of the alleged hacking case.
Last Friday, Brooks resigned as CEO of News International, the British newspaper arm of News Corp.
On Tuesday, Brooks, along with Rupert and James Murdoch, are supposed to appear before the parliamentary committee investigating the phone-hacking scandal. It is not clear now that she will faces criminal charges should she appear. The Murdochs and Brooks had given assurances that they will answer questions in the House of Commons.
Brooks’ replacement is Tom Mockridge, a New Zealander from Sky Italia where he was seen as a foil to the Berlusconi media empire. He has no association with the phone hacking and his experience in visual media is considered an important asset to the company after the aborted bid by News Corp to take over British Sky Broadcasting (BSkyB).
After the public outcry over the hacking scandal, Ofcom, the U.K. media regulator, questioned if News Corp was a "fit and proper" company to have a major stake in BSkyB. All three major political parties supported a motion to stop the $13 billion takeover bid, but the Murdochs withdrew the bid on their own.
The News International scandal has now crossed the Atlantic to the U.S. with the FBI set to begin its own investigation into allegations that relatives of 9/11 victims also had their phones hacked.
