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Southern Water fraud charge
The Environment Agency has commenced criminal proceedings against Southern Water and four former employees, including former Chief Executive Officer Matthew Wright, over an alleged plot to manipulate water quality tests.
“- Published The ex-chief executive of Southern Water has been charged with three others over an alleged plan to manipulate water quality tests to avoid paying financial penalties of about £45m, it can now be reported”
The Administrative Court judgment says it is alleged that between 1 January 2012 and 31 December 2017 the individuals conspired to defraud the Environment Agency and Ofwat by the implementation of artificial no-flow events at waste water treatment works operated by Southern Water.
The case centers on the Operator Self-Monitoring (OSM) compliance testing regime, which the Environment Agency says requires water companies to take samples at wastewater treatment works and report the results to the Environment Agency.
The Environment Agency says conspiracy to defraud is a common law offence carrying a maximum sentence of 10 years’ imprisonment, and it says Southern Water will separately face charges of breaching environmental permits linked to the same conduct.
Court ruling and alleged scheme
Wright and three other former executives were accused of conspiring to defraud the Environment Agency (EA) and water regulator Ofwat by “the implementation of artificial no-flow events at waste water treatment works,” according to court reporting.
Rayo said the summons was issued last year, but Wright launched a legal challenge, with his lawyers telling the High Court in June that the EA did not have the power to issue it and that it should be thrown out as a “nullity”.
On Wednesday, two senior judges dismissed Wright’s claim and ruled that restrictions previously preventing reporting of the legal challenge should be lifted, and court listings showed the case scheduled to be heard at Medway Magistrates’ Court on July 14.
The alleged conduct described in the reporting included “arranging for wastewater to be removed from facilities by tankers in order to create no flow results,” with a view to covering up pollution and deceiving those whose function is to protect the public from such harm.
Who faces charges next
The Environment Agency says the case will proceed before the Medway Magistrates Court, and it says three further individuals will also face charges linked to failure to comply with environmental permits.
“The former chief executive of Southern Water has been charged with conspiracy to defraud over allegations he was involved in a plan to manipulate water quality tests to avoid millions of pounds in penalties”
In its statement, the Environment Agency said: “We can confirm that we are taking criminal proceedings against Southern Water Services Limited and a number of former employees.”
The Environment Agency also said it takes its responsibility to protect the environment “very seriously” and “will always pursue and prosecute those alleged to have committed serious offending against the environment.”
The UK government’s environment secretary Angela Eagle said: “Anyone found guilty of this crime will face the full force of the law,” and she added that the government has already committed to ending the practice of operator self-monitoring to ensure it cannot happen again in the future.
