PracticeAccounting FirmsWater company pledges to plug reporting leaks

Water company pledges to plug reporting leaks

UK's second largest water company said this week it was pleading guilty to charges of misreporting its water leakage to the UK regulator

Severn Trent Water
has overhauled its reporting controls after pleading guilty to falsely reporting
its water leakage and agreeing to pay a potential £35.8m fine.

The UK’s second largest water company is to pay the fine, about 3% of its
turnover, to OFWAT for providing false information and poor customer service.

Tony Wray, chief executive of Severn Trent, said: ‘We have carried out a
fundamental review of every single control and process. We have re-engineered
our governance framework and all the assurances which go with this.’

The OFWAT fine relates to issues from 2004/05. Separately the company said
this week it was pleading guilty to charges of misreporting its water leakage to
the UK regulator.

In 2001 and 2002 it gave estimates of daily water leakage, which it knew was
not based on accurate data, triggering an investigation by the Serious Fraud
Office into reporting irregularities between 2000 and 2003.

The pleas relate to data provided in 2001 and 2002 with an initial hearing at
the City of London Magistrates Court this week with the case referred for
sentencing to the Crown Court.

Severn Trent said since 2001, when the investigation began into the then
management’s reporting conduct, it had made ‘ample disclosures’ relating to any
liability.

Finance director Mike McKeon said there was no provision in the accounts for
the year ended 31 March 2008 because the size of the SFO fine was not yet known.

Related Articles

Sexual harassment – is accountancy next for #MeToo?

Accounting Firms Sexual harassment – is accountancy next for #MeToo?

5d Karen Baxter, Lewis Silkin
Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

4w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

2m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

2m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

3m Fergus Payne, Lewis Silkin