Labour MP suspended as party launches investigation into Covid loans

Labour Whip Removed from Bayo Alaba Amid Probe into Pandemic Loan Handling

Ninoda.com – The Labour Party has stripped MP Bayo Alaba of his whip, leaving him to sit as an independent in Parliament, following a newspaper report suggesting he may have sought to sidestep repayment on a government pandemic loan. Alaba, who represents Southend East and Rochford, voluntarily referred himself to the party’s internal investigations process, which has now been formally opened.

What the Investigation Covers

According to reporting by The Times, Alaba allegedly attempted to dissolve one of his business entities before settling one of two “bounce back” loans he had secured. These taxpayer-backed facilities, ranging from £2,000 to £50,000, were extended to small and medium-sized enterprises during the pandemic to cushion financial pressures. Alaba has confirmed he took out two such loans but maintains he has made no effort to dodge his financial duties, and it is understood he expects both to be repaid in full before the year closes.

Companies House Records

Alaba is the registered co-owner of a firm named Alaba Properties. Public filings at Companies House reveal that a winding-up petition was lodged against the company in March 2022, only to be blocked for reasons not made explicit. A second petition followed in August 2022 and was likewise halted.

Alaba’s Response

“Like many businesses and entrepreneurs, I accessed financial support during the Covid-19 pandemic. 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. 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.”

Party and Opposition Reactions

A Labour spokesperson confirmed the self-referral and stressed that the party holds its elected representatives to the highest standards, noting that robust internal processes exist to enforce those standards. The spokesperson added that no further comment would be offered while the inquiry remains open. It was also noted that, at this stage, the investigation does not imply any wrongdoing on Alaba’s part.

“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 remarks came from Mike Wood, the Conservative shadow Cabinet Office minister, who pressed for transparency on whether government officials stepped in to prevent the company’s dissolution.