SFO setback after court clears Barclays on Qatar

The Serious Fraud Office suffered a major blow on Monday when the Crown Court dismissed all charges against Barclays relating to a £5 billion fundraising deal at the height of the financial crisis.

Barclays and four former executives were charged with fraud. The SFO alleged that the bank had in effect bribed Qatar to make an investment in the bank, or “unlawful financial assistance” in legalese.

Though that is not the end of the matter, since the SFO is now extremely likely to take the matter to a High Court judge to restart the proceedings, it does throw doubt on the chances of a prosecution.

The case against the four directors — John Varley, Roger Jenkins, Thomas Kalaris and Richard Boath — remains unchanged for the moment, it is assumed.

Barclays said it expects the SFO “to reinstate these charges by applying to a High Court judge to recommence proceedings via a new indictment of the same charges”.

The fundraising enabled Barclays to avoid a UK government bailout.