Fraud charges against Barclays over Qatar deals

Arab News
June 21, 2017

Dubai, Jun 21: Qatar’s 2008 bailout of Barclays has come back to haunt the British banking giant, with the leveling of fraud charges against it and four former senior executives over multibillion-pound deals nine years ago.

Barclays

The Serious Fraud Office (SFO), the UK’s top financial prosecutor, announced charges as Qatar’s financial sector showed signs of further strain under the weight of sanctions brought to bear by a coalition of neighboring countries including Saudi Arabia and the UAE.

It has for months been considering action over the undisclosed terms of £6.1 billion ($7.7 billion) worth of deals that saw Qatari investors buy shares to prop up the bank at the height of the global financial crisis, after an investigation that began in 2012.

The SFO on Tuesday announced charges of conspiracy to commit fraud and provision of unlawful financial assistance against the Barclays parent company and four executives who were at the heart of the deals.

The highest profile is John Varley, former group chief executive, who becomes the first boss of any global bank to face criminal charges as a result of the 2008 crisis, which sparked a global crash and recession.

The others were well-known deal-doers at the bank: Roger Jenkins, former chairman of investment banking in the Middle East; Thomas Kalaris, former head of wealth and investment management; and Richard Boath, former head of financial institutions in Europe.

The SFO charges named Qatar Holding, one of the troubled country’s investment vehicles and Challenger Universal, an investment unit set up by former Qatari Prime Minister Hamad bin Jassim Al-Thani, as counterparties to the deals but no British criminal actions have been brought against any Qatari citizens.

Separately, Qatari bankers on Tuesday reported that the Qatar Investment Authority (QIA), its main sovereign wealth fund, made billions of dollars worth of deposits in local banks in an effort to head off any liquidity crisis as fears grew in the country that the current blockade by its neighbors might spark a run on financial institutions there.

In 2008, Barclays was facing its own liquidity crisis as the strains of the global financial crisis weighed on all the big British banks. Some were forced to swap their independence for government bailout funds to avoid bankruptcy.

Barclays, under Varley, chose instead to seek assistance from the Arabian Gulf in a set of transactions that brought in billions of pounds of capital. The first tranche involved investors in Qatar and in Abu Dhabi, the second just Doha investors.

Barclays agreed to pay Qatari investors £322 million in return for the capital injections in side deals that were not disclosed at the time and which the SFO alleges amounted to fraud. There are no allegations against the Abu Dhabi investor.

A third transaction in 2008 involved Barclays making available a loan of $3 billion to Qatar, which the SFO alleges amounted to unlawful financial assistance.

Barclays said it was considering its position in relation to the charges. “Barclays awaits further details of the charges from the SFO,” it said.

The former executives either declined to comment or professed their determination to fight the charges. Jenkins’ lawyer said he intended to vigorously defend against the charges. “As one might expect in the challenging circumstances of 2008, Mr. Jenkins sought and received both internal and external legal advice on each and every aspect of the accusations leveled today by the SFO,” he told the Financial Times.

Boath is involved in a separate action against the bank in a claim for wrongful dismissal over information he provided the SFO in the course of their investigation.

Barclays is also fighting a £720 million claim from financier Amanda Staveley, who was involved in the 2008 transactions.

The charges come at a politically sensitive time for both Qatar and the UK. The former is resisting pressure from its neighbors in the Gulf to halt alleged support for terrorist organizations, which has led to the cutting of economic ties with its two biggest neighbors, Saudi Arabia and the UAE.

On the liquidity measures taken recently, the Qatar Central Bank (QCB) told Reuters: “QIA regularly places deposits in local banks, this is normal.”

Qatar is also a big investor in Britain, with extensive real estate interests and ownership of high-profile assets like the Harrods department store.

Britain, seeking to make up lost investment in the wake of the impending withdrawal from the EU, has made no secret of its need for stronger investment links with the Gulf.

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News Network
April 18,2020

Dubai, Apr 18: Saudi Arabia has reported 1,132 new coronavirus cases, taking the total number of confirmed COVID-19 patients to 8,274, the Ministry of Health revealed on Saturday.

The ministry has also announced five more deaths from the virus, taking to 92 the Kingdom’s death toll.

Recoveries
As for recoveries, 280 new recoveries were reported, pushing the total number of patients recovered to 1,329.

The ministry revealed that 79 per cent of today’s cases are expatriates and that 65 per cent of the cases were detected through intensified and active COVID-19 screening in densely-populated areas.

A total of 201 patients of Saturday’s cases have contracted the disease due to being in contact with existing cases, the ministry added.

The new infected cases have been placed under complete isolation and they are receiving necessary medical care, an official from the ministry said.

He affirmed that medical teams are intensifying efforts and screening tests in workers' neighbourhoods and accommodations in order to limit the spread of the disease.

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Agencies
May 2,2020

Doha, May 2: Twenty-three staff at a hospital in Qatar were injured when tents being used to boost capacity in response to coronavirus collapsed in a fierce storm, local media reported Friday.

Winds of up to 72 kilometres per hour (45 miles per hour) caused two temporary tent annexes at Hazm Mebaireek General Hospital in Qatar's Industrial Area to collapse on Thursday, the Gulf Times reported.

No patients were hurt and most injuries to staff at the facility, 20 kilometres south west of central Doha, were minor, the daily added, citing the health ministry.

During the gale-force winds on Thursday, a Qatar Airways Boeing 787 on the ground was blown into a nearby Airbus A350 at Doha's Hamad airport causing minor damage but no injuries, the airline said in a statement.

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The Industrial Area is a gritty, densely-populated district that is home to mostly migrant labourers and has been the epicentre of Qatar's outbreak. 

Tens of thousands of residents were quarantined in the area after cases of the novel coronavirus were confirmed among the community in mid-March.

Qatar -- home to hundreds of thousands of foreign labourers working on projects linked to the 2022 World Cup -- has reported 12 deaths and 14,096 cases of the Covid-19 respiratory disease.

The hospital's executive director Hussein Ishaq said the incident was being treated "very seriously" and that an investigation had been launched.

Hospital staff had "helped ensure that no patients were injured and were safely transferred to other hospitals", he said, quoted in the Gulf Times.

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News Network
June 12,2020

Beirut, Jun 12: Angry Lebanese protesters blocked roads across the country with burning tyres, debris and their vehicles, incensed over the local currency's depreciation by more than 25 percent in just two days.

The demonstrations from northern Akkar and Tripoli to central Zouk, the eastern Bekaa Valley, Beirut and southern Tyre and Nabatieh on Thursday were some of the most widespread in months of upheaval over a calamitous economic and financial crisis.

Protesters set ablaze a branch of the Central Bank, vandalised several private banks and clashed with security forces in several areas. At least 41 people were injured in Tripoli alone, according to the Lebanese Red Cross.

"I'm really pissed off, that's all. If politicians think they can burn our hearts like this the fire is going to reach them too," unemployed computer engineer Ali Qassem, 26, told Al Jazeera after pouring fuel onto smouldering tyres on a main Beirut thoroughfare.

Tens of thousands of Lebanese have lost jobs in the past six months and hundreds of businesses have shuttered as a dollar shortage led the Lebanese pound to slide from 1,500 to $1 last summer - where it was pegged for 23 years - to roughly 4,000 for each US dollar last month.

But the slide turned into a freefall between Wednesday and Thursday when the pound plummeted to roughly 5,000 to $1 on black markets, which have become a main source of hard currency. There was widespread speculation the rate hit 6,000 or even 7,000 pounds to the dollar, though most markets stopped trading.

Protesters began amassing on streets across the country before sunset and increased into the thousands across the country as the night fell.

Prime Minister Hassan Diab cancelled all meetings scheduled for Friday to hold an emergency cabinet session at 9:30am and another at 3pm at the presidential palace to be headed by President Michel Aoun.

The pound's collapse is the perhaps the biggest challenge yet for Diab's young cabinet, which gained confidence in February after former prime minister Saad Hariri's government was toppled by an unprecedented October uprising that had the country's economic crisis at its core.

Economy Minister Raoul Nehme told Al Jazeera that there was "disinformation" being circulated about the exchange rate on social media and said he was investigating possible currency manipulation.

"I don't understand how the exchange rate increased by so much in two days," he said.

Many protesters have pitted blame on Central Bank governor Riad Salameh, nominally in charge of  keeping the currency stable. But they have also called on the government to resign.

"If people want reform between dawn and dusk, that's not going to work, and if someone thinks they can do a better job then please come forward," Nehme said.

"But what we can't have is a power vacuum - then the exchange rate won't be 5000, it'll be a catastrophe."

'Everyone paying the price'

When protesters set a large fire in Beirut's Riad al-Solh Square, which lies at the foot of a grand Ottoman-era building that serves as the seat of government, firefighters did not intervene to extinguish it.

It later became clear why: Civil Defence told local news channel LBCI they had run out of diesel to fuel their firetrucks.

Basic imports such as fuel have been hit hard by the currency crisis, making already-weak state services increasingly feeble.

A half-dozen or so police officers with Lebanon's Internal Security Forces observed the scene unfolding in front of them in the square.

"Why do you destroy shops and things and attack us security forces - do you think we're happy? Go and f****** break that wall or go to the politicians' houses," one police officer told Al Jazeera, referring to a large concrete barrier separating protesters from the seat of government.

"In the end we are with you and we want the country to change. Don't you dare think we're happy. My salary is now worth $130," the officer said.

The currency's spectacular fall seems to have pushed many Lebanese to put common interests above their differences.

Large convoys of men on motorbikes from Shia-majority areas of southern Beirut joined the demonstrations on Thursday, though they have clashed with protesters many times before - including at a protest on Saturday.

Some chanted sectarian insults, leading to brief clashes in areas that were formerly front lines during the country's devastating 15-year civil war.

Instead, the motorbike-riding demonstrators on Thursday chanted: "Shia, Sunni, F*ck sectarianism."

"We are Shia, and Sunnis and Christian are our brothers," Hisham Houri, 39, told Al Jazeera, perched on a moped with his fiancee behind him just a few metres from a pile of burning tyres.

The blaze sent thick black smoke into the sky towards an iconic blue-domed mosque and church in downtown Beirut.

"Politicians play on these sectarian issues and sometimes succeed, but in the end, they'll fail because all the people have been hurt," he said. "The dollar isn't just worth 6,000 for Shias or for Sunnis, everyone is paying that price."

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