SerpApi.Org
The ex-CEO of Southern Water is being prosecuted by the Environment Agency (EA) alongside three other former employees.
Matthew Wright and his former colleagues, Philip Barker, Clive Massey and Mark Gregory, have been accused of conspiring to defraud the EA and Ofwat between January 2012 and December 2017.
It is alleged they manipulated the Operator Self-Monitoring (OSM) compliance testing regime, which requires water companies to take samples at their sewage treatment works and report the results to the EA.
The prosecution follows a multi-year investigation by the EA and the relentless work of campaigners who exposed the weaknesses with the self-monitoring system that was first introduced by the government in 2009.
The i Paper has been calling on the EA to pursue prosecutions against water companies as part of its Save Britain’s Rivers campaign.
The case marks the first time a water company CEO has personally faced a criminal prosecution by the EA. The offence carries a maximum sentence of 10 years’ imprisonment.
Wright, Barker, Massey and Gregory were initially issued with a summons last year, however Wright launched a legal challenge arguing the case should be thrown out.
On Wednesday, two senior judges dismissed that claim, meaning the case will go ahead and previous reporting restrictions have been lifted.
In a judgement issued as part of the decision, it states the defendants have been accused of “carefully planned and extensive fraud and dishonesty at a high level within the company and on a large scale”.
This includes arranging for wastewater to be removed from facilities using tankers in order to cover up pollution, the judgement said.
James Wallace, CEO of River Action, said the judgement “is a victory for the Environment Agency and a welcome sign that our environmental regulator is beginning to show real teeth”.
The firm has avoided paying at least £45m worth of fines as a result of the manipulation, with the true figure likely to be higher, according to EA.
Southern Water will separately face charges of breaching environmental permits linked to the same conduct. Three further individuals will also face charges linked to failure to comply with environmental permits.
An EA spokesperson said: “We can confirm that we are taking criminal proceedings against Southern Water Services Limited and a number of former employees.
“We take our responsibility to protect the environment very seriously and will always pursue and prosecute those alleged to have committed serious offending against the environment. We welcome this important judgment.”
A Southern Water spokesperson said the case relates to a “historic set of failures” that were “uncovered through an internal company investigation in 2017” and reported to the EA.
They added: “Southern Water is a completely different company now than it was a decade ago. Under new leadership and backed by new shareholders, we’ve radically addressed our culture, governance and operations.”
