Qataris pushed ‘quite aggressively’ for Barclays fee during investment scramble, court hears
A Barclays boss warned his colleagues that Qatari investors were pushing “quite aggressively” to be paid for a controversial services contract at the height of the financial crisis, a court heard today.
Richard Boath told fellow executive Rich Ricci that Doha was growing impatient with the bank, after it apparently missed the deadline to pay for the first of two advisory service agreements (ASAs) struck during 2008.
The Serious Fraud Office (SFO) claims four senior Barclays executives used the ASAs to pay £322m in extra fees to the Qatar, in exchange for an investment that saved the bank from a bailout at the height of the global financial crisis a decade ago.
The former Barclays employees on trial are Boath, former chief executive John Varley, Tom Kalaris, and Roger Jenkins. All four deny the charges, and claim the ASAs were genuine.
It is the first criminal trial of top UK bank bosses since the financial crash.
The Barclays trial – highlights so far:
- Ex-Barclays executives ‘made secret Qatar payments to avoid government bailout’, court told
- ‘The food sucks and the sex is worse’: Barclays fraud trial execs joked about prison
- Bailout fears kept Barclays banker ‘up at 2am’
- Barclays ‘big dog’ pushed for £25m special payment after Qatari cash mission
- Barclays boss feared payments to Qataris could be seen as a ‘bung’
- Barclays fraud allegations implicate Qatar, says trial judge
During a phone call on 4 August 2008, a recording of which was played to the jury at Southwark Crown Court, Boath told Ricci that apparent miscommunication within the bank meant the £42m payment for the ASA had not yet been made, despite the agreement having been signed over a month earlier.
“The guy from [the Qatar Investment Authority] is pushing quite aggressively to get the money now,” Boath told Ricci.
Ricci replied: “I’ll get an answer. We’ll get the payment out today.”
Evidence presented today focused on the activities of Jenkins – known as ‘Big Dog’ – and Boath. The SFO claims Jenkins’ good relations with powerful Qataris meant he was instrumental to Barclays’ successful efforts to secure funding, with Boath helping to organise terms.
In an email to former Barclays chairman Marcus Agius during July 2008, Jenkins described a seemingly positive appraisal meeting he had with the bank’s then-president, Bob Diamond, after the Qatari investment was secured.
“I think I had lipstick marks on my left buttcheek,” Jenkins wrote.
In a phone conversation with two senior Barclays lawyers – Mark Harding and Judith Shepherd – about how the second of the two ASAs could be presented, Boath described himself as “Big Dog’s bag boy”, in an apparent allusion to golf caddying.
“Can’t we find a way through this that would enable us to pay a fee… and characterise the transaction in such a way that’s it’s, how will I say, defendable or appropriate?” he asked them during the conversation in September 2008.
Shepherd said the terms of the first ASA, in which the Qataris agreed to provide political advice and help the bank with networking, could not easily be reused.
“Clearly we can’t use a similar advisory arrangement because after all, how much advice do we need?” she said.
Boath said he wasn’t privy to some conversations Jenkins was having at the time.
“I don’t have Big Dog discussions,” Boath, whose phone was recorded because he was a trader, told the pair. “I’m a little dog.”
The trial continues.