South East Water chair resigns after critical report

An important development from the financial markets: South East Water chair resigns after critical report 29 minutes ago Share Save Add as preferred on Google Michael Keohan , political reporter and Joshua Askew , South East PA Media Chris Train has quit his role at South East Water South East Water (SEW) has announced the resignation of its independent non-executive chair, Chris Train, following a damning report. The water company said new leadership was needed to "oversee a critical period of positive, transformative change for the company, its customers, and local communities". It comes as a cross-party group of MPs say they have no confidence in SEW's leaders following a series of major supply outages.

The Environment, Food and Rural Affairs Committee said SEW's chief executive David Hinton and board had failed to address "multiple and ongoing failures", which left thousands of homes in Kent without drinking water . Calls have also been made for Hinton, who was awarded a £115,000 bonus last year on top of his £400,000 salary, to quit. Lisa Clement, the interim independent non-executive chair, said: "The company's focus remains on delivering engineering and operational changes that will strengthen the resilience of SEW's network and transform the company for the benefit of customers and local communities.

Economic Details

" 'Unusual but necessary step' In a highly critical report published on Friday, MPs accused SEW of poor leadership, weak governance and a culture where nobody was held accountable. Sources close to the environment secretary told the : "The Secretary of State is looking at all options for turning this company and the wider industry around, including the possibility of calling in shareholders to understand their position on the ongoing issues at the company. " The committee said it had taken the "unusual but necessary step" of declaring no confidence in the company's executive team and board because of the seriousness of the failures.

The report said that while select committees do not normally focus on the leadership of individual private companies, MPs felt compelled to act because SEW appeared "shielded from the consequences of its incompetence". PA Media SEW has vowed to improve its service Responding to the report, SEW said it plans to double investment into the water supply network serving Kent, Sussex, Surrey, Hampshire, and Berkshire over the next five years. "The board and executive team reiterate their unreserved apology to those customers impacted by recent operational failures, and the resulting loss of public trust in the company and its services," it added.

Tunbridge Wells MP Mike Martin shared his view that this report "confirms that South East Water poses a clear and present danger to public health". "It's not if there will be another water crisis, but when," he told News, adding that he hopes the government uses this report to demand change.

Financial markets are tracking the development closely as investors assess the likely impact.