Ex-Southern Water boss charged over water test fraud claims
Former Southern Water chief executive Matthew Wright has been charged with conspiracy to defraud over an alleged plan to manipulate wastewater quality tests between 2012 and 2017, alongside three other ex-employees. Prosecutors say artificial "no-flow" events were used to dodge Environment Agency and Ofwat penalties.
Key Takeaways
- Matthew Wright and three former Southern Water colleagues face conspiracy-to-defraud charges linked to wastewater testing between 2012 and 2017.
- The Environment Agency alleges artificial "no-flow" events were staged so sites could avoid failing operator self-monitoring checks.
- By Southern Water's own assessment cited in court, avoided penalties were about £45m; the EA says the figure is higher.
- The High Court dismissed Wright's challenge to the EA's power to prosecute; he denies all wrongdoing.
The case can now be reported after senior judges lifted reporting restrictions tied to Wright's failed legal challenge. For more coverage in this beat, see our True Crime & Unsolved Mysteries hub.
Who has been charged in the Southern Water case?
According to the BBC, Wright, 60, of Haslemere, Surrey, is accused with Philip Barker, 57, of West Chiltington, West Sussex; Clive Massey, 64, of Brandhill, Shropshire; and Mark Gregory, 63, of Southampton.
They are alleged to have conspired between 2012 and 2017 to defraud those carrying out environmental and financial regulation of Southern Water, including the Environment Agency (EA) and Ofwat. Wright's solicitor said he "denies all wrongdoing and has co-operated fully with the Environment Agency's investigation".
Southern Water Services Limited has separately been charged with dozens of offences of failing to comply with or contravening environmental permit conditions between 2013 and 2017 at multiple wastewater treatment works. Three other people—Terry Stephens, David James and Mark Butler—face separate charges of failing to comply with or contravening an environmental permit condition.
What are the men accused of doing?
Prosecutors allege the four implemented artificial no-flow events at wastewater treatment works. Under the operator self-monitoring scheme, treated effluent is sampled in unannounced annual visits. If discharge flow is too low to take a sample, it is not treated as a fail and no further samples are taken in that testing period.
District Judge Stephen Leake previously said the EA alleged "a deliberate plan by officers of the company to manipulate the OSM regime" by "contriving operational circumstances" so there was no flow when a site might fail a test. Lord Justice Popplewell's judgment said the allegations include arranging for wastewater to be removed by tankers to create no-flow results, with a view to covering up pollution and deceiving regulators.
The Guardian reported that conspiracy to defraud carries a maximum sentence of 10 years' imprisonment, and that the case will proceed at Medway Magistrates' Court.
Why does the High Court ruling matter?
Wright argued the EA could only bring private prosecutions for environmental offences, not fraud or conspiracy. On Wednesday, Lord Justice Popplewell and Mr Justice Hilliard dismissed that claim, ruling the EA may prosecute offences calculated to facilitate, or conducive or incidental to, its functions.
An EA spokesperson said the agency is taking criminal proceedings against Southern Water Services Limited and a number of former employees, and welcomed the judgment. Environment Secretary Angela Eagle called any attempt to cover up pollution "outrageous" and said the government has committed to ending operator self-monitoring.
None of the allegations has been proven in court. The proceedings now move forward after the High Court cleared the way for the EA's case to continue.