31st Oct 2005 15:03
Severn Trent Plc announced today that as a result of a referral by Ofwat, theSerious Fraud Office is undertaking a criminal investigation into allegedreporting irregularities made to Ofwat by Severn Trent Water Limited between2000 and 2003.Ofwat has been conducting its own investigation following allegations made byan employee of Severn Trent Water. Ofwat began its investigation into theallegations in January 2005. The matter reported to the SFO concerns data onleakage.Severn Trent is supporting Ofwat in its review of these allegations and willco-operate fully with the Serious Fraud Office.In May 2004 an employee of Severn Trent Water raised a number of allegationsrelating, in particular, to alleged accounting inaccuracies and regulatoryreturns. PricewaterhouseCoopers LLP Forensic Services was appointed by SevernTrent Plc to carry out a thorough and independent investigation and in thelight of their findings Severn Trent Plc announced on 22 November 2004 that theBoard was, and remains, of the view that the matters raised have no effect uponthe integrity of the accounts and that Severn Trent Water's customers have notbeen overcharged. However, a disciplinary investigation was instigated which,though substantially complete, is likely to continue at least until Ofwat'sreview of these matters is completed.The Board has taken and will continue to take such actions as it thinksappropriate to ensure the maintenance of both high ethical and professionalstandards.For further information contact:Peter Gavan, Director of Corporate Affairs, Severn Trent Plc0121 722 4310ENDSEVERN TRENT PLCRelated Shares:
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