July 29 (Reuters) - Britain's Serious Fraud Office (SFO) isexpected to receive about 2 million pounds ($3.07 million) fromthe UK Treasury to support its criminal probe into the dealingsbetween Barclays Plc and Qatar Holding, the FinancialTimes reported on Sunday.
Barclays is being investigated by the SFO and FinancialConduct Authority (FCA) for an allegation that the bank lentQatar Holding, a part of the Qatar Investment Authority, moneyto invest in it as part of a rescue fundraising at the height ofthe 2008 financial crisis.
UK rules forbid a public company from giving financialassistance in order to acquire its shares or those of a parentcompany.
The bank has been deeply investigated by the FCA, which isnow taking a back seat with the SFO probing into other parts ofthe fundraising, the FT said, citing people familiar with thematter. ()
A treasury spokesperson and the SFO declined to comment onthe matter, while Barclays was not available for commentsoutside regular business hours.
David Green, the head of the SFO, has said he expects tosecure extra funding from the government for some complexinvestigations, partly because the agency's annual budget hasbeen slashed to around 30 million pounds - a fraction of thebudget of some regional police forces.
Green, who has said he hopes for progress in the Barclaysinvestigation by year end, is already receiving more than 3million pounds per year in extra government funding the helpwith 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 risksundermining the independence of the SFO, which is battling torestore faith in its crime-busting abilities.
Barclays, which publishes financial results on Tuesday, isexpected to set out plans either to sell bonds that are wipedout if it hits trouble or to raise equity to meet tougher UKrules on capital.
Barclays (BARC)
