Thames Water chairman accused of conflict of interest over £37m share dividend payment

Defra officials concerned about conflicted position' of Sir Adrian Montague over dual role chairing holding company

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.