Ex-Water Boss Charged With Allegedly Faking Tests to Avoid £45m Penalties - Just a 'Historic' Oopsie, Says Company
Ex-Southern Water CEO and three others charged with faking water tests to dodge £45m fines; company says it's 'completely different' now - except for the part where they're still being investigated.
The former chief executive of Southern Water, Matthew Wright, has been charged alongside three others for allegedly orchestrating a scheme to manipulate water quality tests, thereby dodging about £45 million in financial penalties. The scheme, which prosecutors say ran from 2012 to 2017, involved arranging for wastewater to be hauled away by tankers to create "no flow" results, thereby avoiding failed tests and the accompanying fines.
Wright's solicitor insists he "denies all wrongdoing and has co-operated fully" with the Environment Agency's investigation. Southern Water, for its part, called the charges a "historic set of failures" uncovered in an internal investigation, and emphasized it is a "completely different" company now - presumably one that doesn't get caught as often.
The Environment Agency sought a summons against the four last year, but Wright launched a legal challenge arguing the EA lacked the power to prosecute fraud. Two senior judges dismissed that challenge on Wednesday, ruling that the EA can indeed prosecute offenses "conducive or incidental" to its functions - like, say, not having your wastewater tests rigged.
According to court documents, the alleged conspiracy aimed to "cover up pollution and deceive those whose function is to protect the public from such harm." The four accused - Wright, Philip Barker, Clive Massey, and Mark Gregory - are scheduled to appear at Medway Magistrates' Court on July 14. Separately, Southern Water itself faces dozens of charges for violating environmental permit conditions between 2013 and 2017.
In related news, an analysis of Wright's pay from 2011 to 2016 reveals he earned £715,900 in his final full year at the company, and nearly £2 million the year before, thanks to a £1.25 million long-term incentive plan bonus. Because nothing says "incentive" like a bonus while allegedly cooking the books.
Three additional former employees - Terry Stephens, David James, and Mark Butler - have also been charged with environmental permit violations. Butler, apparently the overachiever, faces eight counts.
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