The former chief executive of Southern Water has appeared in court charged with conspiracy to defraud over alleged efforts to manipulate water quality tests to avoid penalties.
Matthew Wright, 61, appeared at Bromley Magistrates’ Court today (Friday 11 September) alongside other former employees to face the criminal charge for the first time.
Wright, as well as Philip Barker, 59, Clive Massey, 66, and Mark Gregory, 64, are accused of conspiracy to defraud the Environment Agency and water regulator Ofwat.
It is alleged that from January 2012 to December 2017, the men manipulated the self-monitoring regime by artificially contriving “no-flow events” at wastewater treatment works.
The former employees are accused of doing so to avoid environmental checks being failed in a scam that could have saved the water company from paying fines of at least £45 million, according to the allegations.
Barker, Massey and Gregory were officers or senior operations managers of Southern Water at the time of the alleged offences, according to a previous High Court ruling.
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 said.
Southern Water has separately been charged with dozens of offences of failing to comply with or contravening an environmental permit condition.
Mark Butler, 47, David James, 60, and Terry Stephens, 68, also appeared before District Judge Stephen Leake today accused of the same offence.
The judge said that he was satisfied that the charges were all “related” and sent the case to Maidstone Crown Court, where the defendants are due to appear on Friday 9 October.
Wright, Gregory and Butler appeared in court in person for the brief hearing today while the others appeared via a video link.
The seven men were all granted unconditional bail. They are
- Matthew Wright, 61, of Derby Road, Haslemere, Surrey
- Philip Barker, 59, of Grove Lane, West Chiltington, West Sussex
- Clive Massey, 66, of Brandhill, Onibury, Craven Arms, near Ludlow, Shropshire
- Mark Gregory, 64, Newton Road, Southampton
- Mark Butler, 47, of London Road, Sayers Common, Hassocks
- David James, 60, of Chippers Road, Worthing
- Terry Stephens, 68, of Fontwell Mews, Cowplain, Waterlooville, Hampshire
Wright denies any wrongdoing and has co-operated with the Environment Agency’s investigation, his solicitor said after an earlier High Court hearing.
Wastewater treatment works can only be run with an environmental permit issued by the Environment Agency.
But since 2009, treated effluent from facilities has been tested to ensure that it complies with the rules under an “operator self-monitoring” scheme – enabling the water companies, in effect, to mark their own homework.
Tests are carried out in unannounced visits by staff who operate within the water companies separately from their colleagues who operate the wastewater treatment works.
The results are shared with the Environment Agency 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.
Wright joined Southern Water from United Utilities in 2011 and left in December 2016. He went on to be managing director of offshore wind company Orsted and holding senior roles at other energy companies.
Sack everybody and Nationalise our water before we end up sick or worse. These people do not care about us and do not have our best interests at heart. Their only goal is a bigger bonus, car or house.
Unfortunately, due to the managed underinvestment in the infrastructure, this would only land the taxpayer with eye-watering liabilities. What is needed is a moratorium on dividends and bonuses, a surcharge on the shareholders to claw back money that should have been used to replace and improve our Victorian pipes and sewers, plus a concerted effort to develop a plan to reduce stress on the system. Nationalisation in this instance means that would fall on the public purse with no guarantee that a future government wouldn’t privatise it again to “balance the books!” I also believe that there should be criminal charges against culpable individuals who may have conspired to deceive officials, ministers and the general public.