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Former Southern Water CEO accused of fraud for'manipulating the wastewater testing'

Former Southern Water Chief Executive Matthew Wright has been charged by Britain's Environmental?Agency with conspiracy to defraud the agency. The alleged fraud was committed through the manipulation of wastewater treatment checks.

The 'Environment Agency' alleges that Wright and three other former Southern Water employees "conspired" to defraud both the Environment Agency and the water regulator Ofwat from 2012 until 2017, saving the company at least PS45,000,000 ($60 million) of penalties.

Wright had claimed that the Environment Agency did not have the authority to prosecute him on conspiracy to defraud. However, the High Court dismissed his appeal on Wednesday.

Southern Water, which has more than 4 million customers, stated that the charges related "to a historical set of failures", and the individuals charged are no longer employed by the company.

In a press release, Southern Water said that the findings were discovered during an internal investigation conducted in 2017. Southern Water notified regulators and the Environment Agency as soon as it was identified.

Ofwat didn't immediately respond to requests for comment.

Wright's attorney said in a press release that Wright denies "all wrongdoing" and has fully cooperated with the Environment Agency investigation.

The charges are made amid a growing public outrage against privatised water firms in Britain. This anger is focused primarily on sewage discharges. Also, the new Prime Minister Andy Burnham said that nationalisation was the best solution for Thames Water - Britain's biggest water company.

Angela Eagle, the Environment Secretary, said that in a press release: "The public is rightly sick of pollution and attempting to hide it is outrageous." Any person found guilty will be subject to the full force the law.

She said that the government had committed to end operator self-monitoring, "to make sure this does not happen again in the future."

The Environment Agency claims that there was a deliberate attempt to stop wastewater treatment plants from being tested properly when it was thought that the site might fail. This was done to prevent accurate results from being given.

High Court ruling: The regulator argues that Southern Water avoided penalties of approximately PS45 million on its own assessment, but the regulator claims the figure is higher.

The charges of conspiracy to defraud will now be heard at the Medway Magistrates Court. If convicted, the charge can result in a maximum of 10 years imprisonment. $1 = 0.7482 pound (Reporting and writing by Muvija and Sam Tobin; editing by Paul Sandle and Elaine Hardcastle)

(source: Reuters)