Thames Water chairman accused of conflict of interest over £37m share dividend payment
The chair of Thames Water was suspected by government officials of holding a potentially “conflicted position” when his company made an “unjustified” dividend payment of £37,5m to its shareholders,The water provider, on the brink of bankruptcy, was in the high court last week seeking an emergency £3bn loan as it struggles to stay afloat under massive debts,It is under fresh scrutiny over its dividend payments,Thames Water – long accused of favouring the interests of its shareholders over its 16 million customers – faces an £18.
2m penalty from Ofwat over dividends it paid out, including an intra-company payment of £37,5m in October 2023,The Observer and Democracy for Sale have established that officials were concerned before the dividend was paid that Sir Adrian Montague was the chair of both Thames Water and its controlling company Kemble Water Holdings,Thames Water insisted this weekend there was no conflict of interest,Steve Goodrich, of Transparency International, said: “There are serious questions as to how this conflict of interests was allowed to go unchallenged for so long.
”Montague was appointed to the boards of Thames Water and Kemble Water Holdings on 10 July 2023,Both firms were already in severe financial distress,Government officials thought that “Adrian’s chairmanship of both Thames Water (regulated entity) and its holding company (Kemble) may put him in a conflicted position”, according to a briefing document,The July 2023 note prepared for a meeting between Montague and officials from the Department for Environment, Food and Rural Affairs (Defra) stated: “The company and its directors may well need to make decisions that diverge from the interest of shareholders,” Montague, an experienced City “troubleshooter”, had already told Ofwat he would step down if a conflict “was to arise”, it shows.
Despite the concerns, Montague kept both roles until February 2024, when he resigned from Kemble citing “personal” reasons.A further intra-company dividend of £158.3m was paid in March 2024.Thames Water said it considered all regulatory obligations in making the payments, which were used to service debt obligations, settle amounts for group relief surrendered and make pension contributions.Rules introduced in May 2023 required water companies to take account of environmental performance and customer delivery when deciding whether to pay dividends.
In a provisional decision in December 2024, Ofwat found Thames Water had broken dividend payment rules.It proposed a penalty of £18.2m for the “unjustified” payments of £37.5m and £158.3m, with a consultation on the proposal closing last month and a final decision yet to be announced.
“Such an obvious conflict of interest between the chair of the operating company and the holding company should never be allowed,” James Wallace, the CEO of River Action, told the Observer,“What on earth were the previous government doing allowing that to happen?”Thames Water has paid out more than £7bn to shareholders since it was privatised in 1989,The firm said it had not paid a dividend to “external shareholders” since 2017,Ofwat said: “We were aware of the potential for a conflict of interest to arise through the dual roles [held by Montague], and Ofwat requested and received assurance from the company that these points were recognised and would be managed pro-actively,” It said its investigation into the dividend payments was not yet concluded and it would be inappropriate to provide further comment.
Thames Water said: “Sir Adrian resigned as chairman of Kemble Water Holding Limited and its Kemble subsidiaries on 17 February 2024, because he felt the time was right to fully focus on the work ahead at Thames Water,There is no suggestion a conflict of interest occurred,Thames Water follows the principles set out in the UK Corporate Governance Code and Ofwat’s Board leadership, transparency and governance principles,“Our plans assume no external dividends to shareholders until at least 2030, to support our turnaround,“Sir Adrian, and the board of Thames Water are focused on putting the business on a firmer financial footing and unlocking billions of pounds for investment.
”Defra said: “This government has wasted no time in cleaning up the water sector.We have … taken immediate action to ban bonuses for polluting water bosses and ringfence money earmarked for vital infrastructure, so it is never spent on bonuses or shareholder payouts.“We have also launched the largest review into the sector since privatisation 30 years ago, which will make further recommendations about how to stamp out conflicts of interest and improve financial resilience.”
Jordan Mailata makes history as first Australian to win a Super Bowl
Jordan Mailata, the giant rugby league convert from Bankstown, spoke of his “crazy, crazy journey so far” after making history by becoming the first Australian to play in a Super Bowl victory. The offensive tackle, taking part in his second NFL championship decider, played no small part in the Philadelphia Eagles’ stunning win over the Kansas City Chiefs in this year’s showpiece game held in New Orleans.In front of a star-studded Superdome crowd and a global audience of tens of millions, Mailata’s journey from humble beginnings in Sydney’s south-west to the pinnacle of world sport was completed, as he helped the Eagles to a one-sided 40-22 win over the Chiefs, whose hopes of securing a three-peat were dashed in spectacular fashion.Mailata had a big impact on the game, particularly during the first half in which the Eagles raced to a 24-0 lead. The 27-year-old played a crucial part in the opening touchdown – a “tush push” play which saw star quarterback Jalen Hurts squeeze under a mass of bodies and into the end zone
New York Jets and Aaron Rodgers to part ways, according to reports
Aaron Rodgers’ brief and unsuccessful career with the New York Jets appears to be over, with multiple reports that the team and quarterback are parting ways.Fox Sports’ Jay Glazer initially reported on Sunday that the Jets told Rodgers last week that they intended to move on from him. ESPN and the NFL Network later said their sources confirmed the news.There had been speculation for some time that Rodgers would leave the Jets, with the quarterback and team both refusing to confirm the relationship would continue. Rodgers joined the Jets in the run-up to the 2023 season but his first campaign ended on the first drive of the first game of the season when he tore his achilles tendon
Furbank and Feyi-Waboso fitness boost bolsters England’s Six Nations charge
England are hopeful George Furbank and Immanuel Feyi-Waboso will be back for the business end of the Six Nations campaign to bolster their title push after keeping their hopes alive with victory against France.The Northampton full-back Furbank has been out of action since December with a broken arm while Feyi-Waboso is nursing a shoulder injury and both were considered in danger of missing out on the entire championship. But after the last‑gasp win on Saturday kick‑started England’s campaign Steve Borthwick revealed both players could yet return for his side’s run-in.The head coach heralded the 26-25 victory against France as evidence of his side’s improvement and, after two rounds of the Six Nations, England sit third in the table with six points, four behind the leaders Ireland, and can consider themselves in the title race.“I’m really happy for the players that they’ve got the win,” Borthwick said
Rohit Sharma hits century as India surge to ODI series victory over England
England will enter the Champions Trophy this month after four consecutive one-day international series defeats, their latest confirmed by the relentless blade of Rohit Sharma.Questions about Sharma’s future have piled up in recent weeks, as would be the case for any 37‑year‑old player out of nick. But a one-day series at home is a radically different challenge to a Test tour of Australia, and the aura of a white-ball king remains. Sharma struck a 90‑ball 119, his 49th international hundred, as India hunted down a target of 305 in Cuttack with four wickets and 5.3 overs to spare
Super Bowl 2025: Kansas City Chiefs 22-40 Philadelphia Eagles – as it happened
We appreciate your clicking in and sticking with us for this momentous Super Bowl blowout. We’ll have more live Super Bowl coverage next year, but until then, wherever you are, good morning, good evening or good night!The Trophy!“I said AFTER the trophy” is blurted out on a live mic by someone who was a little testy! The Commissioner hands the Vince Lombardi trophy to Eagles owner Jeffrey Lurie, who thanks the staff and the dogs and says hi to his mom.Then Nick Sirianni thanks god again and lectures us on the importance of teamwork. Hurrah!Hurts is announced as the Super Bowl MVP by Terry Bradshaw, who knows a little something about that. Hurts says he couldn’t be here without his teammates, which is absolutely correct, because 11 players v a QB would be way too much to overcome
Scotland 16-32 Ireland: Six Nations 2025 – as it happened
Here’s Luke McLaughlin’s report from Edinburgh.Same old story for Scotland, or as Luke says, “the song remains the same”.Thanks for joining me. We’ve had six games in the Six Nations so far and really only one, maybe two have been decent.Let’s hope this break revitalises the competition
‘It’s a gut punch’: how the California wildfires affected film and TV workers
Noel Clarke lawyers’ claims against Guardian journalists unacceptable, judge says
‘I’m in my early 20s most of the time… totally up for it!’: Tamsin Greig on ageing, caring and learning bass guitar
Why are ‘friendly neighbourhood cats’ appearing on Google Maps all of a sudden?
From the sublime to the cringeworthy: Tim Ross on Australia’s housing dream (and nightmare)
The Guide #177: Son of a Century is a gripping, timely series – and maybe the end of the antihero drama