Labour MP Bayo Alaba has been suspended by the party pending an internal investigation into questions surrounding a taxpayer-funded COVID-19 loan. Alaba, the Member of Parliament for Southend East and Rochford, referred himself to the Labour Party after an investigation was launched into the funding.
According to reports, Alaba is alleged to have attempted to dissolve one of his businesses before settling one of two loans received during the pandemic. The Labour Party confirmed the suspension and the initiation of an internal probe.
"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 party spokesman stated. "We cannot comment further while the investigation is ongoing."
Alaba, who was elected in 2024 and is a former paratrooper, previously operated businesses in the music industry, some of which were later liquidated. He remains a co-owner of Alaba Properties Ltd, a company that reportedly had a bounceback loan taken out against it.
Reports indicated an attempt to wind up the company in March 2022, a process that typically requires a company to have no outstanding debts. This attempt was reportedly blocked twice that year, with concerns raised as to why the company should not be removed from the register.
Addressing the allegations, Alaba told The Times, "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."