Water staff face false accounting probe

UK water group Severn Trent said an undisclosed number of staff were at the centre of disciplinary proceedings today following the outcome of a wider investigation into allegations of false accounting.

The Birmingham-based group said the four-month inquiry by accountants PricewaterhouseCoopers (PwC) had uncovered evidence of behaviour that it believed fell short of the “high standards it expects from employees”.

However, Severn Trent said the wider inquiry involving its accounting and regulatory returns to watchdog Ofwat had found no impact on the integrity of the group’s accounts or that water customers had been overcharged.

The decision to start an independent investigation was made in May following a number of allegations made by a member of staff at Severn Trent Water. Ofwat is reviewing the results of the investigation.

Severn Trent declined to comment on the number of staff involved in the disciplinary proceedings, but denied claims in a Sunday newspaper that employees distorted figures in order to justify price rises to Ofwat.