A Labour Member of Parliament has been suspended from the party as an internal investigation is launched into his handling of a government-backed COVID-19 loan. Bayo Alaba, the MP for Southend East and Rochford, referred himself to the Labour Party over the matter.
Alaba has also had the parliamentary whip suspended, meaning he will now sit as an independent MP. The Labour Party stated that the investigation does not at this stage imply any wrongdoing. A spokesperson for the party 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 spokesperson added, "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."
Reports from The Times newspaper allege that Alaba attempted to wind up one of his businesses before settling one of two bounce-back loans he had acquired. These loans, funded by taxpayers, were made available to small and medium-sized businesses during the pandemic to alleviate financial difficulties, with amounts ranging from £2,000 to £50,000.
Alaba has acknowledged taking out two such loans. He maintains that he has not attempted to evade his financial obligations and believes both loans will be fully repaid by the end of the year. Company records show that an attempt was made to wind up Alaba Properties, a company of which Alaba is a registered co-owner, in March 2022. This attempt was blocked for reasons that were not specified. A second attempt to wind up the company was also blocked in August 2022.
"Like many businesses and entrepreneurs, I accessed financial support during the Covid-19 pandemic," Alaba said. "I am proud of my background as a small business owner, and of the work I have done since entering politics to support the business community, in part because I know just how difficult things can be."
He continued, "There has been no attempt to avoid my financial obligations, and I am wholeheartedly committed to ensuring that the liability is met in full. I've referred myself to the Labour Party's investigations process on the matter and I'll cooperate fully."
Conservative shadow Cabinet Office minister Mike Wood commented on the revelations, stating, "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."