Former Southern Water boss among four charged over conspiracy to 'manipulate water quality tests'
Matthew Wright was CEO at Southern Water between 2011 and 2016
The former chief executive of Southern Water has been charged with conspiracy to defraud authorities over allegations he was involved in a plan to manipulate water quality tests to avoid millions of pounds in penalties, it can now be reported.
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Matthew Wright has been accused alongside three others of conspiring to defraud the Environment Agency (EA) and water regulator Ofwat.
The EA previously asked a judge to issue a summons against Wright, as well as Philip Barker, Clive Massey and Mark Gregory, who also worked at the company, charging them with the offence.
The summons was issued last year but Wright then launched a legal challenge over the move, with his lawyers telling the High Court in June that the EA did not have the power to issue it and that it should be thrown out as a “nullity”. On Wednesday, two senior judges dismissed Wright’s claim, and ruled that restrictions previously preventing reporting of the legal challenge should be lifted.
Separate court listings show that the case against the following were scheduled to be heard at Medway Magistrates’ Court on July 14.
- Matthew Wright, 60, of Haslemere, Surrey
- Philip Barker, 57, of Chiltington, West Sussex
- Clive Massey, 64, of Brandhill, Shropshire
- Mark Gregory, 63, of Southampton
The four are accused of conspiring between 2012 and 2017 to “defraud persons performing public duties in respect of environmental and financial regulation” of Southern Water, including the EA and Ofwat, by “the implementation of artificial no-flow events at waste water treatment works”.
The court listings also show that Southern Water has separately been charged with dozens of offences of failing to comply with or contravening an environmental permit condition between 2013 and 2017 at multiple wastewater treatment works.
Wastewater treatment works can only be run with an environmental permit issued by the EA.
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Treated effluent discharge from the works is tested under an “operator self-monitoring” (OSM) scheme introduced in 2009, which sees discharges tested annually in unannounced visits.
The tests are carried out by sampling teams, which operate separately from teams that run the works.
The results of the tests are shared with the EA and water regulator Ofwat, and can lead to penalties if the works do not comply with the terms of their permits.
If the discharge flow at the time of the test is insufficient to take a sample, this is not regarded as a fail, and no samples are taken for the rest of the testing period.
Rules around OSM have been tightened in the past year, including that samples must be rescheduled in the event that the flow is insufficient, with the current Labour government pledging to end the practice.
Stephen Shergold, Wright’s solicitor, said following the ruling: “Mr Wright denies all wrongdoing and has co-operated fully with the Environment Agency’s investigation.”
Southern Water has separately been charged with dozens of offences of failing to comply with or contravening an environmental permit condition between 2013 and 2017 at multiple waste water treatment works.
Three further individuals will also face charges linked to failure to comply with environmental permits, the EA said.
Following the judgment, 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.”
The case will now proceed at Medway Magistrates’ Court.
Environment Secretary Angela Eagle said: “Anyone found guilty of this crime will face the full force of the law.
“This government will always back tough enforcement action to protect our rivers, lakes and seas.
“We have already committed to ending the practice of operator self-monitoring to ensure this cannot happen again in the future.”
Rules around operator self-monitoring have been tightened in the past year, including that samples must be rescheduled in the event that the flow is insufficient, which was not formerly the case, and the EA is this year beginning to take its own samples to cross check with water company tests.