New York scraps $27million contract with Rupert Murdoch company as hacking scandal proves too much to stomach



New York State has scrapped a controversial $27 million contract with one of Rupert Murdoch's companies.



A lucrative contract between Murdoch subsidiary firm Wireless Generation and the state Education Department was this week rejected.

Revelations of wide spread phone hacking and police bribery have already brought down News Corp.'s British tabloid 'News of the World'.



Rupert Murdoch with former News International Chief Executive Rebekah Wade

The U.S. Attorney General is currently investigating claims Murdoch's media empire hacked the phones of any 9/11 victims.

Wireless Generation, one of Murdoch's subsidiary companies, was to pocket $27 million of $700 million in software development funds.



The 'Race to the Top' funds are allocated for developing software to track student test scores.



But with teachers' unions members opposing the handover of data to Wireless Generation, the controversy proved too much for the state to stomach.



State Comptroller Thomas DiNapoli refused to approve the deal, the New York Daily News reported.



DiNapoli's office wrote to the Education Department : 'In light of the significant ongoing investigations and continuing revelations with respect to News Corp., we are returning the contract with Wireless Generation unapproved.'

New York State controller Thomas DiNapoli has refused to approve the deal

Wireless Generation is the latest casualty of the phone hacking crisis

DiNapoli's office also cited an 'incomplete record' on Wireless Generation's qualifications as a cause for concern.



State education officials accused Di Napoli of caving to the unions. Education Department spokesman Jonathan Burman said.'The controller has allowed political pressure to get in the way of vital technology that would help our students,'

