The BBC Trust - the corporation's governing body - said Mr MacQuarrie's findings were "very concerning".

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An inquiry by BBC Scotland director Ken MacQuarrie concluded that Newsnight had failed to complete "basic journalistic checks".

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In the same session BBC Scotland's director Ken MacQuarrie told the committee, overall in news and current affairs 30 jobs were going.

BBC: Education and Culture Committee

Mr MacQuarrie's report is not the only inquiry into Newsnight.

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During the controversy about the story, McAlpine, former treasurer and deputy chairman of the Conservative Party, denied any involvement and indicated he would take legal action, MacQuarrie's report said.

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Committee convener Stewart Maxwell opened the session by saying both the BBC director general George Entwistle and BBC Scotland director Ken MacQuarrie had been invited but had declined to attend.

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The BBC had established a separate chain of command for all stories related to Savile, but it was not clear whether the Wales story was regarded as Savile-related, MacQuarrie's report said.

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Before MacQuarrie's review was completed, BBC News Director Helen Boaden and her deputy, Steve Mitchell, were asked to "surrender all their responsibilities" pending the outcome of the review, the BBC said.

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Committee convener Stewart Maxwell opened the session by saying both the BBC director general George Entwistle and BBC Scotland director Ken MacQuarrie had been invited but had declined, later adding that was "very disappointing".

BBC: Education and Culture Committee

The investigation into the program was carried out by BBC Scotland Director Ken MacQuarrie, who noted that the complex story had moved from commission to transmission in six days, an unusually short period for the BBC.

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