British bank accused of propping up Mugabe regime

28 February, 2009 in Zimbabwe

source: SW Radio Africa
By Alex Bell
27 February 2009

A British bank currently operating in Zimbabwe has been accused of propping up Robert Mugabe, reportedly by transferring money directly to the dictator’s regime.

The accusations by the UK’s Foreign Office were made in internal British government emails last year, which showed concern about the involvement of Standard Chartered Bank in Zimbabwe. According to the emails, seen by the UK’s Telegraph newspaper, an internal Foreign Office briefing document accuses the bank of diverting money directly to Mugabe’s government, through a loans scheme.

According to the Telegraph, the one email, dated August 25 2008, says: “Standard Chartered risks real reputational damage if seen as passing funds to the Government of Zimbabwe.” A further email from July last year accuses banks operating in the country of ‘propping up’ Zimbabwe’s Reserve Bank, which has a notorious reputation for diverting funds to Mugabe’s cronies. The August email even suggests that Standard Chartered should close its operations in the crisis ravaged country, reading: “We should ask the companies to take a long hard look at what they are doing and with whom.”

UK leaders have been particularly critical of [continue reading]

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