Barclays Bank is implicated in the use of cluster munitions in Misrata. Analysis of the accounts of Instalaza, the manufacturer of the cluster munitions used in Misrata, by Profundo shows that Barclays Bank has been a major funder of the Spanish arms manufacturer.
In 2007, Instalaza generated annual revenues of € 14.9 million, resulting in a net profit of €0.2 million. On 31 December 2007, Instalaza owned total assets of € 31.8 million. These assets were financed by the following financial stakeholders:
Shareholders: € 17.1 million 53.8%
Banks: € 12.0 million 37.7%
Other: € 2.7 million 8.5%
The banks involved included:.
Deutsche Bank (Germany): €3,068,951
Cajalón, part of Grupo Caja Rural (Spain): €2,692,750
Caja España (Spain): €2,153,297
Caja Mediterráneo (Spain): €1,602,438
Bankinter (Spain): €852,310
Barclays Bank (United Kingdom): €593,978
Ibercaja (Spain): €498,993
Banco Popular (Spain): €299,308
Banco Sabadell (Spain): €87,906
La Caixa (Spain): €33,000
Source: Instalaza SA, “Depósitos De Cuentas: 2007”, Instalaza SA, 2008.
Some of the bank loans have been repaid since 2007 but the following banks still had loans outstanding on 31 December 2009:
Media reports suggest the cluster munitions were fired by Libyan forces. In fact, neither Qatar nor the USA have signed to sign up to the CLuster Munitions Convention.
Under the terms of the Cluster Munitions (Prohibitions) Act 2010, it is a criminal offence to encourage or assist in the development, production or acquisition of cluster munitions. According to the UK government this includes “the direct financing of cluster munitions.” (Chris Bryant, Houses of Parliament, Hansard 7 December 2009
Terms of the Act include:
(1)It is an offence for a person to—.
(a)use a prohibited munition,.
(b)develop or produce a prohibited munition,.
(c)acquire a prohibited munition,.
(d)make arrangements under which another person acquires a prohibited munition,.
(e)have a prohibited munition in the person’s possession,.
(f)transfer a prohibited munition, or.
(g)make arrangements under which another person transfers a prohibited munition..
(2)It is an offence for a person to assist, encourage or induce any other person to engage in any conduct mentioned in paragraphs (a) to (g) of subsection (1)..
(3)A person guilty of an offence under this section is liable, on conviction on indictment, to imprisonment for a term not exceeding 14 years or to a fine, or to both..
Updated 10 June
One reply on “Barclays bank implicated in the use of cluster munitions in Misrata”
Added the information on the current legal status of the provision of financing for cluster munitions in the UK.
It would be interesting to find out what Barclays knew of Instalaza’s exports at the time they financed Instalaza.