Arrest in probe into £1m Wessex bribe

A SENIOR executive of a British water company formerly owned by corrupt energy giant Enron, has been arrested on suspicion of taking a £1m bribe.

The Wessex Water official, in his fifties, is being questioned by Fraud Squad officers for allegedly receiving a corrupt payment during a takeover bid for the company. His home and business premises are being searched for evidence.

The man, who is not being named, was arrested by fraud officers. He was later released on bail whiile inquiries continued.

Enron had to sell Wessex ntry business to raise cash as it collapsed. Disgraced accounting firm Andersen was until recently the water company's auditor. Lord Wakeham, former Tory energy minister, resigned from the Wessex Water board in May after its £1.2bn takeover by Malaysian conglomerate YTL in that month. There is no suggestion he is involved in the current investigation.

YTL bought Wessex Water for £545m cash, plus the assumption of £695m in debt, beating off a Royal Bank of Scotland-led consortium. RBS had initially been named preferred bidder.

Detective Superintendent Ken Farrow of City of London Fraud Squad said: 'We would like to emphasise that at this stage our inquiry centres on the actions of one particular individual at Wessex Water Ltd in May this year.' There is no suggestion of general mismanagement.