British utility Wessex Water said today its chairman and chief executive Mr Colin Skellett had been arrested by fraud police on suspicion of accepting an illegal payment of nearly £1 million.
Police said they were investigating whether he had accepted a payment during Wessex Water's takeover by Malaysian energy firm YTL Power earlier this year.
Mr Skellett, who has been in the water industry for 40 years, is also non-executive chairman of infrastructure services company Jarvis Plc.
Jarvis shares were down nearly 13 per cent today at 260p. "Colin is the non-executive chairman. These issues have nothing whatsoever to do with Jarvis," a spokesman for the company said.