A Labour MP has been suspended following an investigation into a taxpayer-funded COVID-19 loan.
Bayo Alaba, the MP for Southend East and Rochford, referred himself to the Labour Party after questions arose regarding the funding. According to The Times, Alaba is alleged to have attempted to dissolve one of his businesses before settling two loans he received during the pandemic.
The Labour Party confirmed it had suspended the whip from Alaba and initiated an internal inquiry. "Bayo Alaba MP has referred himself to the Labour Party so that these matters can be investigated in line with the party's rules," a spokesperson stated. "We cannot comment further while the investigation is ongoing."
Alaba, a former paratrooper elected in 2024, previously operated several businesses in the music industry, some of which were later liquidated, The Times reported. He remains a co-owner of Alaba Properties Ltd, which appears to have had a bounceback loan taken out against it.
Records indicate an attempt to wind up the company in March 2022, a process that requires a company to have no outstanding debts. This attempt was reportedly blocked twice that year, with the company's registrar being shown cause why it should not be struck off the register.
Speaking to The Times, Alaba said, "Like many businesses and entrepreneurs, I accessed financial support during the Covid-19 pandemic. There has been no attempt to avoid my financial obligations, and I am wholeheartedly committed to ensuring that the liability is met in full."
Mike Wood, the shadow Cabinet Office minister, commented on the revelations, stating, "These are concerning revelations and Alaba clearly has questions to answer."