Ex-Southern Water chief in court accused of conspiracy to defraud

The former chief executive of UK firm Southern Water has appeared at court charged with conspiracy to defraud over alleged efforts to manipulate water quality tests to avoid penalties.

Matthew Wright, 60, appeared at Bromley Magistrates' Court on Friday alongside other former employees to face the criminal charge for the first time.

Wright, as well as Philip Barker, 57; Clive Massey, 64; and Mark Gregory, 63, are accused of conspiracy to defraud the Environment Agency and water regulator Ofwat.

It is alleged that between January 2012 and December 2017, the individuals manipulated the self-monitoring regime by carrying out artificial no-flow events at wastewater treatment works.

The former employees are accused of doing so to avoid failing environmental checks.

The move could have avoided fines of £45 million or higher, according to the allegations.

Barker, Massey and Gregory were officers or senior operations managers of Southern Water at the time of the alleged offences, a previous High Court ruling states.

The former employees are accused of "defrauding persons performing public duties in respect of environmental and financial regulation of Southern Water Services Limited", the offence summary says.

Southern Water has separately been charged with dozens of offences of failing to comply with or contravening an environmental permit condition.

Mark Butler, 45; David James, 58; and Terry Stephens, 67, also appeared before District Judge Stephen Leake on Friday accused of the same offence.

The judge said he is satisfied the charges are all "related" and sent the case to Maidstone Crown Court, where the defendants will appear on October 9.

Wright, Gregory and Butler appeared at court in person during Friday's brief hearing while the others appeared via CVP link.

Wright, of Surrey; Barker, Butler and James, all of West Sussex; Massey, of the West Midlands; and Gregory and Stephens, both of Hampshire, were granted unconditional bail.

Wright denies any wrongdoing and has cooperated with the EA's investigation, his solicitor said after an earlier High Court hearing.

Wastewater treatment works can only be run with an environmental permit issued by the EA, but since 2009 treated effluent from facilities has been tested to ensure it complies with the rules under an "operator self-monitoring" scheme.

Tests by water companies are carried out in unannounced visits by teams that operate separately from teams that operate the works.

Results are shared with the EA and Ofwat, with penalties if they do not meet the terms of the permit.

But if the discharge flow at the time of the test is insufficient to take a sample – known as a "no-flow event" – it is not recorded as a fail.

Wright joined Southern Water from United Utilities in 2011 and left in December 2016, going on to be managing director of Orsted and then hold senior roles at other energy companies.

By Georgia Bates, Press Association

source: PA

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