Sheikh claims £40m Barclays fraud

Barclays bid to raise cash from the Qatari Investment Authority could be derailed after a member of the Qatari royal family publicly complained about an alleged fraud.

The Sunday Times said a member of Qatar's ruling Al Thani family, Sheikh Abdul Aziz bin Kahalifa Al-Thani, claims that Barclays owes him about €50 million (£40 million).

The missing funds were allegedly taken from the sheikh's account in Marbella, Spain, five years ago by an employee who transferred around €4 million a month into his own account.

The details are filed in documents at a Spanish court, where criminal investigations are ongoing.

The sheikh claims it was Barclays gross negligence that allowed the fraud to take place, and is demanding his money back.

The timing of the letter coincides with Barclays cash call, as the bank plans to raise £4 billion by selling shares to sovereign wealth funds, other banks and existing investors.

It has already reportedly secured interested parties including Singapore-based sovereign wealth fund Temasek, China Development Bank and Japan's Sumitomo Mitsui Financial Group. It is also thought to have sought investment from Qatari Investment Authority (QIA).

The letter reportedly contains references to Barclays negotiations with QIA, hinting that the deal could be put at risk if the matter is left unresolved.

The Financial Times has questioned how much influence the sheikh actually has with his half brother and head of state, Sheikh Hamad bin Khalifa Al Thani, being as he was on "the wrong side of a palace coup" in 1995.