Ex-Severn Trent FD hits back at dishonesty claims

The former group finance director of Severn Trent has hit back at the Serious Fraud Office over claims he and his colleagues deliberately misled Ofwat about the company’s water leakage.

Mark Wilson, who was named in court proceedings as one of several ex-employees who dishonestly reported leakage figures, said he had been given no opportunity to defend himself from such claims.

‘Throughout this case, the SFO made a number of claims of dishonesty against Severn Trent; but from the start none of these allegations were ever put to me and had they done so, I would have responded very robustly and had it ever gone to court, denied any culpability,’ said Wilson.

The SFO prosecuted Severn Trent Water for providing incorrect water leakage figures during 2001 and 2002. However, although the prosecution told the court former executives, including Wilson, lied about leakage figures, no charges were brought against any individual.

Wilson said that as he had no status in the proceedings, he had no opportunity to present his side of the story, and as such the court had heard a version of events that was ‘highly selective in its facts’.

Wilson, who left Severn Trent in July 2005, maintains that he had fully cooperated with all previous investigations and that he continues to believe that Ofwat were reasonably informed of the difficulties the company was experiencing with its leakage calculations.

Severn Trent was fined £2m pounds and ordered to pay court costs of £220,000 by Judge Jeremy Roberts QC at the Old Bailey yesterday.

Ofwat today confirmed it will also fine the company an additional £35.8m for separate offences relating to misreporting customer information.