LONDON, July 22 (Reuters) – Britain’s Environment Agency said on Wednesday it was 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 had allegedly conspired to defraud the Environment Agency and water regulator Ofwat between 2012 and 2017 by creating artificial “no-flow” events at wastewater treatment works to influence compliance checks.
Southern Water, which has over 4 million customers, did not immediately respond to a Reuters request for comment.
In a judgment published on Wednesday, the High Court rejected Wright’s argument that the Environment Agency lacked the power to prosecute him for conspiracy to defraud.
The judgment said the Environment Agency alleges the scheme allowed Southern Water to avoid penalties of about £45 million while the regulator’s own assessment put the figure higher.
The case will now proceed before Medway Magistrates’ Court.
(Reporting by Muvija M and Sam Tobin, writing by Sam Tabahriti, editing by Paul Sandle)
