/ 26 July 2002

Guardian threatened with asset seizure

A political backlash gathered pace in the United Kingdom this week against Interbrew, the Belgian brewer trying to force media organisations to hand over leaked documents.

MPs described the action as corporate bullying and tabled a motion in the House of Commons on Wednesday in defence of the news organisations. The National Union of Journalists described the legal moves as the biggest threat to press freedom for decades.

Interbrew is to ask the high court next Tuesday to seize The Guardian’s assets for refusing to hand over a copy of a leaked document, received anonymously and detailing a possible bid for South African Breweries. The action could result in sequestration or a hefty fine.

The Financial Times, The Times and Reuters are in discussions with the Financial Services Authority (FSA) over the possibility of handing the documents over to the FSA.

There was widespread criticism in British circles this week of the tactics adopted by the Stella Artois brewer. Chris Smith, culture secretary during Labour’s first four years, said: ”Press freedom is absolutely imperative. Anything that forces an editor to reveal journalistic sources damages the freedom of the press. This is particularly important at a time when you need the press to be vigilant in exposing corporate malfeasance.”

Jeremy Dear, general secretary of the National Union of Journalists, said: ”The idea that a brewer is prepared to send a team of accountants to sequestrate and run a newspaper is one of the biggest threats to press freedom for decades. The right of individual journalists and the media as a whole to protect their sources is fundamental.”

John Wadham, director of Liberty, the UK’s main civil rights NGO, said: ”Press freedom is a fundamental protection for democracy and this principle would be substantially eroded if journalists had to disclose their sources.

”Liberty believes that this case is so important that we are willing to put our lawyers in the service of the newspapers when they take their case to the European Court of Human Rights.”

Alan Rusbridger, editor of The Guardian, said: ”We are now facing an event unprecedented in British newspaper history.

”A Belgian-owned brewery is planning to ask a British court next week to order accountants to take control of a national newspaper.

”This threatened sequestration of The Guardian‘s assets raises fundamental issues about the operation of a free press in this country, which will send shockwaves through the world’s press.”

An early day motion tabled by Labour MP Tom Watson, and signed by two other MPs, says: ”This house believes a free and fair press is vital to democratic life; and considers journalists to be under moral and professional obligations to protect their sources.” — (c) Guardian Newspapers