Ahmed passes the town hall, where a council meeting has just come to an end. He sees a local councillor, Dawood Dodgy, arguing with the managing director of a large local building company, and crouches behind a car to listen. He hears the businessman accuse the local councilor (Dodgy) of taking bribes to give companies council building work. He writes a story about what he has heard, reporting that A local councillor has been accused of taking bribes by the head of Bloggs Building, Harris Honestman. Mr Honestman said that the whole council was corrupt, and that at least one councillor was in the habit of taking bribes from companies seeking contracts from the council. The councillor was heard to shout that Mr Honestman was talking nonsense, before he sped off in his silver Rolls Royce. This is yet another example of the corrupt practices at the local council. The newspaper can only get hold of one photo of Mr Honestman to illustrate the piece; it shows him talking to a local councillor, Changez Chatty. The paper uses the picture anyway, with a caption that reads Mr Honestman with Councillor Chatty. 

Does anyone have a claim in defamation against the paper? 

What defences might the paper raise if a claim is made?