Bayo Alaba, the Labour MP for Southend East and Rochford, has been suspended from the party whip after questions were raised over a taxpayer-funded Covid loan. The MP reportedly attempted to wind up one of his businesses before settling one of two bounceback loans he had taken out.
Alaba refers himself for investigation
Alaba is understood to have referred himself to the Labour Party for investigation into the matter. The suspension is a precautionary step and implies no finding of wrongdoing, according to reports.
Mike Wood, the Conservative shadow Cabinet Office minister, said: “These are concerning revelations, and Alaba clearly has questions to answer. Alaba needs to come clean about whether he tried to avoid paying his debts, and ministers should tell us if they had to intervene to stop it. The public deserve the truth.”
Bounceback loans and repayment
Bounceback loans, ranging from £2,000 to £50,000, were given to small and medium-sized businesses during the coronavirus pandemic to help them after lockdowns. Alaba is now repaying both loans, according to The Times.
Labour Party response
A Labour Party spokesperson said: “Bayo Alaba MP has referred himself to the Labour Party so that these matters can be investigated in line with the party’s rules. The Labour Party expects the highest standards from our elected representatives, and we have robust processes in place to ensure those high standards are upheld. We cannot comment further while the investigation is ongoing.”
Alaba is understood to have agreed for the whip to be suspended while the investigation takes place.
