barret was the one that tried to convince everybody in corel that Shinra would make things better. he insisted that they should create a mako plant here, and so everybody decided to give them a try. then Barret left for something, alone with Dyne, and Shinra torched the place, so even though the people of Corel accepted shinra at first, they decided to blame Barret beacuse
1) They couldn't blame Dyne because everybody thought he was dead
2) (see skyblades reply)