Ex-Barclays members provide evidence for fraud
Former board members of Barclays have been called on to give evidence to the UK’s anti-fraud agency as part of a probe into the bank’s dealings with Qatar over an emergency cash injection at the height of the financial crisis.
The Serious Fraud Office has served Section 2 notices on directors who were on the board when Barclays sought £5.8bn from Qatari investors in 2008 – enabling the bank to avoid a bailout. The move by the SFO comes at a critical moment in the investigation, which has been mired in disputes over accessing key evidence, according to people familiar with the investigation.
Section 2 notices compel recipients to hand over documents to the SFO, and deny those giving evidence a right to silence – although, in return, individuals will not be prosecuted provided they do not lie.
The SFO has already conducted interviews under caution – in which suspects are read their rights – with Bob Diamond, ex-chief executive; John Varley, ex-chairman; Chris Lucas, former financial officer; and Roger Jenkins, former head of its tax-advisory business.
The SFO has also moved away from investigating whether there was any corruption involved in Barclays’ capital-raising from Qatari investors. Instead, it is probing whether both the bank and key former directors breached legislation on making false and misleading statements, and the general obligations of publicly traded companies, people with knowledge of the inquiry added.
Barclays is refusing to hand over to the SFO what the agency says is key evidence between suspects and the bank’s internal and external lawyers, according to people familiar with the situation – because Barclays asserts that the communications are covered by legal-professional privilege. Privilege keeps confidential legal advice to a client.
Source: FT-Ex-Barclays members provide evidence for fraud
