Council’s £15 million investment in Qatar bank criticised by Green party
A DECISION by Reading Borough Council to invest £15 million in a bank linked to Qatar has been criticised by an opposition councillor, writes James Aldridge, Local democracy reporter.
The country’s human rights record was flagged up as a concern by Green Party member Cllr Josh Williams.
Chairing a meeting of the council’s Audit and Governance Committee meeting on Tuesday, July 19, he questioned how the investment correlates with the council’s ethical investment policy.
This states that the council should not knowingly invest directly in businesses whose activities and practices pose a risk of serious harm to individuals or groups, which includes those with links to human rights abuses, environmentally harmful activities and socially harmful activities such as smoking and gambling.
But the council placed £15 million with the Qatar National Bank between March and May, in a bid to earn 0.94% interest – £23,564 – at a time when interest rates have been at historic low levels.
Cllr Williams (Green, Park) said: “Qatar has a lamentable human rights record. It has a legal system that discriminates against women, LGBT people face discrimination and even jail, so it’s troubling that we might send a message to the people of Reading that the council is happy to invest millions of pounds in a country that would imprison homosexual men.
“This is not a slight on what officers have done, they’re using every means at their disposal to save us, or even make us money and Qatar is on the list of approved countries to invest in.
“And this is not really a slight on the Qatar National Bank,
I don’t know what kind of an organisation they are, it is a question over whether the ethical investment policy is working as I think we all want it to work.”
Qatar is judged as ‘Not Free’ by human rights watchdog Freedom House, which gave it a freedom score of 25/100.
The Gulf country be hosting the FIFA World Cup in November and December this year.
Although most places on the list of approved countries for the council to invest in are western, it includes Hong Kong and Abu Dhabi.
A spokesperson for the council said: “Most, if not all local authorities, will look to maximise returns on temporary cash surplus which ultimately contribute towards the funding of council services.
“Investments will only be placed with banks in countries on the approved list, which is part of the Council’s Treasury Management Strategy Statement.
“In this case, funding was placed in Qatar National Bank (QNB) for a short period (March, 16 2022 to May 16, 2022). The approved list is reviewed on an annual basis.”