Barclays boss forgoes bonus, Qatar deal probed



REUTERS

Published — Saturday 2 February 2013

Last update 2 February 2013 12:10 am

| نسخة PDF Print News | A A

LONDON: Barclays Chief Executive Antony Jenkins has opted not to take a bonus for 2012, saying he should “bear an appropriate degree of accountability” for the difficult year the British bank endured.
Jenkins is trying to restore Barclays’ reputation since the revelation of its role in a global interest rate rigging scandal led to a $450 million fine and the departure of his predecessor Bob Diamond.
Those efforts are unlikely to be a straight road. The Financial Times reported that British authorities are looking into an allegation that Barclays lent Qatar money to invest in it as part of a rescue fundraising at the height of the 2008 financial crisis.
UK rules forbid a public company from giving financial assistance in order to acquire its shares or those of a parent company.
A Barclays spokeswoman said: “Both the FSA and SFO investigations are ongoing and, as such, we are unable to comment further.”
The FSA, SFO and Qatar Holding declined to comment.
Jenkins, who became CEO in August, said he did not want to be considered for a bonus after a difficult year for the bank and its stakeholders.
“I think it only right that I bear an appropriate degree of accountability for those matters,” he said in a statement.
He said he was aware of considerable speculation about his bonus and wanted to avoid “further unnecessary public debate.” His annual salary as CEO is 1.1 million pounds and he could have received an annual bonus of up to 2.75 million.
The issue of pay at Barclays and other banks is set to flare again next week when Jenkins, Barclays Chairman David Walker and their counterparts at Lloyds and HSBC are quizzed on pay by UK lawmakers.
RBS CEO Stephen Hester said last June he would waive his bonus for 2012 following a computer systems failure which caused disruption to millions of its customers.
Qatar Holding, which according to the FT is not accused of any wrongdoing, invested 5.3 billion pounds ($ 8.4 billion) in Barclays in June and October 2008, helping it avoid a government bailout, unlike rivals Lloyds Banking Group and Royal Bank of Scotland.
The Financial Services Authority (FSA) and Serious Fraud Office (SFO) have been looking into the investment since July. Allegations of a loan to the Qataris are a new thread of the investigation, the FT said, citing two sources familiar with the situation.
The deal with Qatar was questioned from the outset. Shareholders were angry it was offered more attractive terms than existing investors. A sale of warrants in November left Qatar sitting on a gain of 1.7 billion pounds from its investment, according to Reuters estimates.
Qatar Holding, part of the Qatar Investment Authority, which was set up by the state in 2005 to diversify its investments away from oil and gas, is the bank’s biggest shareholder with a 6.7 percent stake.
Barclays said in August that Britain’s fraud prosecutors had launched a criminal probe into payments between the bank and Qatar, a month after revealing the FSA’s investigation into dealings between the two parties.
It said the FSA probe was into the bank and four current and former senior employees, including finance director Chris Lucas. Sources have said another is Roger Jenkins, the main architect of the Qatar fundraising who left Barclays in early 2009 and is now at Brazilian investment bank BTG Pactual.
Neither Lucas nor Jenkins immediately responded to requests for comment.
Barclays said in July when it first disclosed the investigation that it considered it had satisfied its disclosure obligations.

What's happening around Saudi Arabia

UN Secretary General Ban Ki-moon and Saudi Arabia’s permanent representative to the UN Abdullah Al- Muallami unveiled a beautifully framed old kiswa (covering) of the door of the Holy Kaaba at one of the newly refurbished halls of the world body. The...
A policeman was shot dead by an unknown gunman in Qatif in the Eastern Province on Tuesday night.According to a spokesman of the Eastern Province police, the firing took place at 11:30 p.m. in a suburb called Al-Jishi.The targeted police officer was...
JEDDAH: Jeddah Show, one of the many events of Jeddah Summer Festival 36, is attracting a large number of visitors. The sound-and-light show is being run at the Jeddah International Exhibition and Convention Center.The show tells the story of the Bri...
JEDDAH: The Riyadh Traffic Department carried out extensive campaigns on the main streets, intersections and squares in the city to boost traffic safety levels and discourage bad driving.During the first 72 hours of the campaign, traffic personnel re...
RIYADH: One of two women infected with the Middle East Respiratory Syndrome coronavirus (MERS-CoV) died here in Riyadh, while the other patient is being treated at a hospital in Al-Kharj, some 60 km from the capital. Since June 2012, the Ministry of...
AL-AHSA: Approximately 20,000 tons of Al-Ahsa dates are planned to be marketed abroad during the new dates season.Muhammad Ismail, director general of the King Abdullah City for Dates (KACD), said: “The authorities in the city are planning to increas...
JEDDAH: Al-Bagdadiya neighborhood residents in Jeddah are living in a state of worry because of 20 abandoned houses, which serve as hideouts for criminals.Residents said some houses are on the verge of collapse and have turned into shelters for crimi...
JEDDAH: A committee consisting of representatives from the Hail governorate, municipality, health department and the Saudi Food and Drugs Administration (SFDA) has ordered the closure of a restaurant in the city’s industrial area.Twelve people suffer...
The board of the Saudia Standards, Metrology and Quality Organization has announced that mandatory application of the regulations on new tires produced or sold in the Kingdom will commence in November this year.The board explained that the technical...
JEDDAH: The number of people with mental health issues or depression is increasing in Saudi Arabia due to urbanization, marital or relationship problems, and not being able to keep up with rapid progress. A Saudi mother said that her daughter suffers...
JUBAIL: Jubail beaches are expected to receive many tourists during September as a large number of people usually head to the city once the summer gets cooler to enjoy their holiday here.As part of the beach preparations for this season, the Social S...
RIYADH: More than 50 percent of vehicle users in the Kingdom are not satisfied with the after-sales service of auto agencies in the Kingdom.In a survey conducted by the Ministry of Commerce and Industry (MCI) to evaluate the performance of automobile...
JEDDAH: The Appeals Court has upheld the verdict issued by a specialized penal court which sentenced Dr. Said bin Zair to four years in prison from the date of his arrest in 1428.According to the ruling, the academician is also banned from traveling...
JEDDAH: Health authorities in the Eastern Province are expected to issue a decision soon against four Saudi nurses accused of “negligence” for an incident which led to the amputation of the hand of a Saudi girl after they tried to insert a needle in...
JEDDAH: The Jeddah municipality has closed down a popular restaurant following the discovery of a rat rummaging through food items.The rat act was captured on video and posted on social media websites. It went viral, prompting the authorities to laun...

Stay Connected

Facebook