Staveley case: Barclays paid Qataris to ‘help set up other deals’

Barclays paid Qatari investors extra fees in its 2008 bailout because it expected them to help set up other deals, its former chief executive has said.

The admission is the latest twist in a case brought by financier Amanda Staveley against Barclays. 

Staveley claims she was denied fees paid to Qatar when she participated in the bank’s emergency £7billion cash call at the height of the financial crisis.

Former boss John Varley has told the court there was a ‘commercial connection’ between a £280million payment to Qatar and its purchase of shares. 

But he maintained the fees were not solely paid to convince Sheikh Hamad, the then Qatari prime minister, to plough money into Barclays.

He said the new investors were also obliged to hand over the influential contacts Barclays would need to secure lucrative deals across Qatar.

Staveley’s lawyer questioned why the banker responsible for developing Middle Eastern business was not told of the agreement. Varley said top banker Roger Jenkins was instead responsible. 

Joe Smouha QC asked: ‘You would agree that if they were genuine agreements for the provision of services for which Barclays was paying in total £322million, she should have been told?’

To which Varley responded: ‘Perhaps…My bet though was on Roger. Roger was the man who was going to convert this investment into a good return.’

The case continues.