Ex-Barclays chairman 'not aware' of 2008 Qatar side deal, court hears

Giving evidence: Former Barclays chairman Marcus Agius. Photo: Peter Macdiarmid/Getty Images

Former Barclays (BARC.L) chairman Marcus Agius was not aware of a side deal struck with Qatar in 2008 that is now at the heart of a criminal trial, a court heard on Wednesday.

Agius, who was chairman of Barclays from 2007 to 2012, gave evidence as part of a Serious Fraud Office (SFO) case against four former Barclays executives who are accused of misleading investors over the true level of fees paid to Qatar in 2008 in exchange for multibillion pound investments that saved the bank from a bailout.

READ MORE: Barclays bankers feared being ‘rumbled’ in ‘dangerous’ Qatar transaction, jury hears: ‘If you go down the whole place goes down’

The defendants in the case are: John Varley, who was CEO of Barclays between 2004 and 2011; Roger Jenkins, who formerly ran Barclays Capital’s investment management business in the Middle East and North Africa; Thomas Kalaris, the former CEO of Barclays’ wealth and investment management; and Richard Boath, the former head of European financial institutions group at Barclays Capital.

Varley and Jenkins each face two counts of conspiracy to commit fraud, and Kalaris and Boath each face one. All four have pleaded not guilty. Qatar is not accused of any wrongdoing.

Agius was asked on Wednesday by Ed Brown QC if he was aware of an advisory service agreement (ASA) that was struck with Qatar alongside a £2bn ($1.5bn) investment in October 2008.

“Absolutely not,” Agius said. “I saw this document for the first time some years after,” adding that he saw it first in 2012.

“Not only did I not see the document, I was not aware of its existence,” Agius told the jury at Southwark Crown Court.

READ MORE: Barclays lawyers signed off on ‘bungs’ and ‘corrupt payments’ to Qataris, court told

ASAs struck between Barclays and Qatar alongside two investments in 2008 are at the heart of the SFO’s case against the former Barclays bankers. Prosecutors claim that these ASAs were “smokescreens” used to pay Qatar additional investment fees that were not paid to other investors at the time and not properly disclosed to the market.

Qatar Holdings was paid £280m under the second ASA signed in October 2008. Asked about the document, Agius said he was not aware of how the ASA was negotiated or how the payment figure was arrived at.

Qatar invested just over £2bn in Barclays in October 2008 as part of a £6.8bn fundraise that helped the bank avoid a state bailout as the financial crisis struck.

The case continues and is expected to last up to six months.

Read more on the trial of the Barclays four:

• Former Barclays execs lied about payments to Qatar, court told

• Senior Barclays banker raised concerns about ‘hidden commission’ in Qatar deal, court told

• Ex-Barclays exec said ‘none of us wants to go to jail’ over Qatar deal, jury hears: ‘The food sucks and the sex is worse’

• Barclays bankers feared being ‘rumbled’ in ‘dangerous’ Qatar transaction, jury hears: ‘If you go down the whole place goes down’

• Barclays bankers worried about ‘dodgy’ payments to Qatari Prime Minister, court hears

• Bankers feared pay cuts if state had nationalised Barclays in 2008, court hears

• ‘Big dog’ Barclays banker paid £25m bonus for 2008 funding deal at the heart of court case

• Barclays lawyers signed off on ‘bungs’ and ‘corrupt payments’ to Qataris, court told

• Judge tells jury not to ‘dwell on soundbites’ about ‘the food and the sex’ in Barclay trial

• Crisis-era Barclays chairman gives evidence in Qatar court case

• Barclays feared losing talent to US banks if it took 2008 bailout, court hears