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.