Matthew Wright, former CEO of Southern Water, and three other ex-employees appeared in Bromley Magistrates' Court charged with fraud conspiracy for allegedly manipulating water quality tests between 2012 and 2017 to avoid fines up to £45 million. The charges against them include defrauding the Environment Agency and Ofwat by conducting artificial no-flow events at wastewater treatment sites to prevent failed environmental checks, which could have led to substantial financial penalties. All defendants were granted bail and their case will proceed to Maidstone Crown Court on October 9.
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Story summary
Matthew Wright, the former CEO of Southern Water, along with three other ex-employees, appeared in Bromley Magistrates' Court on Friday charged with conspiracy to defraud. The charges stem from allegations that between January 2012 and December 2017, they manipulated water quality tests to avoid failing environmental checks and potentially dodging fines of up to £45 million. Wright and his colleagues are accused of orchestrating artificial no-flow events at wastewater treatment plants when they anticipated test failures. Despite the allegations, Wright's solicitor stated that he denies wrongdoing and has cooperated with the Environment Agency's investigation. The case was sent to Maidstone Crown Court, where defendants will appear on October 9th. All accused were granted unconditional bail; Wright appeared in person while others connected remotely via video link.
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The former boss of Southern Water has appeared in court charged with fraud conspiracy over alleged plans to manipulate water quality tests.
Matthew Wright, 61, appeared at Bromley Magistrates' Court on Friday alongside three other former employees to face the criminal charge for the first time.
The former chief executive and fellow former employees Philip Barker, Clive Massey, and Mark Gregory are accused of conspiracy to defraud the Environment Agency (EA) and water regulator Ofwat.
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executive → see → Agency
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.
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individuals → allege → works
This involved ensuring there was not adequate water flow through sites for sampling when bosses believed water quality tests would be failed.
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tests → involve → sampling
In doing so, it is claimed the men were trying to avoid failing environmental checks as well as fines of £45million or higher.
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men → do → 45million
Barker, 58, Massey, 66, and 64-year-old Gregory were officers or senior operations managers of Southern Water at the time of the alleged offences, a previous High Court ruling states.
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ruling → allege → offences
Matthew Wright, 61, appeared at Bromley Magistrates' Court on Friday after he was charged with fraud conspiracy
It is alleged that between January 1, 2012, and December 31, 2017, the men conspired to defraud the Environment Agency and Ofwat, the water regulator, by manipulating water quality compliance testing (Pictured: Margate waste water site)
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.
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summary → appear → Limited
Southern Water has separately been charged with dozens of offences of failing to comply with or contravening an environmental permit condition.
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Water → charge → condition
Mark Butler, 47; David James, 60; and Terry Stephens, 68, also appeared before District Judge Stephen Leake on Friday accused of the same offence.
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Butler → appear → 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.
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solicitor → say → 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.
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it → run → scheme
Tests by water companies are carried out in unannounced visits by teams that operate separately from teams that operate the works.
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that → carry → 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.
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it → share → 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.
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Wright → join → companies
