Barclays is reportedly providing substantial loans to allies of Robert Mugabe in Zimbabwe who have been given land taken from white farmers. The bank is allegedly one of the main contributors to a Zimbabwean government scheme to boost farm productivity, and has thus been accused by critics of helping to fund Mugabe’s corrupt regime.
Barclays made a £34 million profit from its operations in Zimbabwe last year, though the Zimbabwean government has stated that the British bank must finance the Aspef loans if it wishes to operate in the country.
The Agricultural Sector Productivity Enhancement Facility (Aspef), the government scheme in question, offers loans to farmers to buy machinery and supplies. However, it has come out of necessity rather than generosity, with the Zimbabwean government forcing their people to the brink of starvation as a result of their corruption. The land they have forcibly taken from white farmers has been given to Mugabe and members of his regime, though this has resulted in productivity plummeting.
In further allegations, the British bank is said to have lent £750 million to the new landowners, whilst new revelations suggest the bank has lent money to five of Mugabe’s EU sanctioned ministers. As a result, Foreign Secretary David Miliband is being encouraged to investigate whether Barclays is breaching EU sanctions.
The bank has denied any sanctions have been breached, and refused to comment on whether it had dealings with the five ministers.
Barclays Reportedly Bankrolling Mugabe's Regime
Barclays Reportedly Bankrolling Mugabe's Regime
Wed, 21 Nov 2007
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