Lead

The Environment Agency is bringing a fraud case against four former Southern Water employees, including former chief executive Matthew Wright, over allegations they manipulated wastewater testing results. The regulator said the four allegedly conspired to defraud the agency and water regulator Ofwat between 2012 and 2017 by creating artificial "no-flow" events at wastewater treatment works to influence compliance checks.

Coverage comparison

Both articles originate from The Guardian. One focuses on the fraud case against the former employees, while the other details a separate fine imposed on Southern Water for illegal sewage dumping.

Key claims

  • The Environment Agency is bringing a fraud case against four former Southern Water employees, including former chief executive Matthew Wright, over alleged manipulation of wastewater testing results.
  • The alleged fraud occurred between 2012 and 2017; the agency alleges the scheme allowed Southern Water to avoid penalties of about £45m, according to the company's own assessment, though the regulator's assessment put the figure higher.
  • The high court rejected Wright's argument that the Environment Agency lacked the power to prosecute him for conspiracy to defraud. Conspiracy to defraud carries a maximum sentence of 10 years' imprisonment.
  • Southern Water did not respond to a request for comment on the fraud case, according to The Guardian.
  • In a separate case, Southern Water has been fined more than £7m for dumping sewage illegally off the Kent coast between 2019 and 2021. The company pleaded guilty to 13 offences at Medway magistrates court, including nine counts related to incidents of untreated sewage dumped off the Kent coast.
  • The judge described Southern Water's record of criminality as an "exceptionally serious aggravating factor" and noted the company has 174 previous convictions.

Perspectives

Environment Agency

The agency confirmed it is taking criminal proceedings against Southern Water Services Ltd and former employees. A spokesperson said: "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."

Government

Environment Secretary Angela Eagle said: "The public are rightly sick of environmental pollution and attempting to cover it up is outrageous. Anyone found guilty of this crime will face the full force of the law." She added that the government is committed to ending operator self-monitoring to prevent future incidents.

Southern Water

Southern Water did not respond to a request for comment on the fraud case. In the separate sewage dumping case, the company pleaded guilty to the offences and was fined £7,127,083. The judge noted "overall serious failures" in the company's maintenance and response procedures, saying it "knew the importance of maintaining resilience systems and equipment" and was aware of the potential for equipment failure and the need for robust testing procedures.