July 29 Britain's Serious Fraud Office (SFO) is
expected to receive about 2 million pounds ($3.07 million) from
the UK Treasury to support its criminal probe into the dealings
between Barclays Plc and Qatar Holding, the Financial
Times reported on Sunday.
Barclays is being investigated by the SFO and Financial
Conduct Authority (FCA) for an allegation that the bank lent
Qatar Holding, a part of the Qatar Investment Authority, 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
The bank has been deeply investigated by the FCA, which is
now taking a back seat with the SFO probing into other parts of
the fundraising, the FT said, citing people familiar with the
A treasury spokesperson and the SFO declined to comment on
the matter, while Barclays was not available for comments
outside regular business hours.
David Green, the head of the SFO, has said he expects to
secure extra funding from the government for some complex
investigations, partly because the agency's annual budget has
been slashed to around 30 million pounds - a fraction of the
budget of some regional police forces.
Green, who has said he hopes for progress in the Barclays
investigation by year end, is already receiving more than 3
million pounds per year in extra government funding the help
with the largest and most complex inquiry on his books -
the investigation into Libor rate rigging.
Some lawyers have argued that this so-called 'surge' or
'blockbuster' funding for specific investigations risks
undermining the independence of the SFO, which is battling to
restore faith in its crime-busting abilities.
Barclays, which publishes financial results on Tuesday, is
expected to set out plans either to sell bonds that are wiped
out if it hits trouble or to raise equity to meet tougher UK
rules on capital.