Barclays SA subsidiary funding fuel for Mugabe regime

By Tererai Karimakwenda
26 March, 2007

ABSA, the Barclays Bank subsidiary in South Africa, is allegedly funding fuel supplies for the Zimbabwean government, which include jet fuel for military airplanes. This has been revealed by a British NGO called Rights and Accountability in Development (RAID), which monitors corporate ethics in third world development. Tricia Feeney from RAID said the group has reported this to the British Foreign Office, which is responsible for sanctions, and the Department of Trade and Industry which handles corporate governance and ethical behaviour by British registered companies and banks. She explained that reliable sources had informed them of a US$35 million revolving fund made available to Zimbabwe by ABSA for emergency fuel supplies.

The question is whether funding fuel for fighter planes violates existing E.U. regulations against selling armaments to Zimbabwe. Feeney said there might not be a violation because the E.U. targeted sanctions apply only to weapons. But she raised a separate issue: “Nevertheless then there is an ethical issue whether at this particular moment a British bank should be assisting a regime that is violating human rights on such a scale to keep going by making fuel available.”

RAID has also contacted Barclays Bank about the ABSA fuel facility for Zimbabwe. They are awaiting responses from the Home Office and the Department of Trade and Industry. One report said the ABSA credit line was guaranteed to the suppliers, who were based in the United Arab Emirates. They would provide “up to 25 thousand metric tonnes of fuel per month, including Jet A1 fuel for aircraft Zimbabwe bought from China.