LONDON (AFP) - A British lawmaker referred James Murdoch to police Friday over claims of misleading parliament on the phone-hacking scandal as Prime Minister David Cameron said the media boss had "questions to answer". James Murdoch, who is the chairman of the British newspaper division of his father Rupert's media empire, has been challenged over evidence he gave denying he knew that hacking was widespread at the now-shuttered News of the World. The development put the spotlight back on the Murdochs just as the scandal seemed to be spreading to other British newspapers, having already dragged in the police and politicians, even embroiling Cameron himself. During a tense appearance with his father before parliament's media committee on Tuesday, James Murdoch, denied all knowledge of an email suggesting the problem went beyond one rogue reporter before authorising a payout to a victim. But Colin Myler, the former editor of the News of the World, and Tom Crone, former legal manager of the News International news group, broke ranks on Thursday to say James Murdoch's recollection of events in 2008 was a "mistake". On Friday, Tom Watson, a Labour lawmaker who sits on the committee and has been a long-time critic of News International, said their challenge to the 38-year-old was "the most significant moment of two years of investigation". "This morning I am going to refer the matter to Sue Akers, the head of Operation Weeting (the phone hacking investigation) at the Metropolitan Police," Watson told the BBC. He said Murdoch had "failed to report a crime to the police" and also "bought the silence of Gordon Taylor", chief executive of the Professional Footballers' Association. Taylor received a reported 700,000 (now 790,000 euros, $1.14 billion) after he brought a damages claim against the News of the World. A Metropolitan Police spokesman confirmed it had received a letter from Watson. "It is being considered," the spokesman told AFP. James Murdoch has denied giving misleading testimony, saying: "I stand by my testimony to the select committee." But Cameron - who has himself been under pressure over his decision to hire former News of the World editor Andy Coulson, later arrested over allegations of phone hacking and bribing police - agreed he must explain himself.