Labour MP suspended amid investigation into Covid-era loan

A Labour MP has been suspended as he faces questions about taxpayer-funded Covid business loans.

Bayo Alaba, the Labour MP for Southend East and Rochford, has confirmed that he has referred himself to the Labour Party for investigation after The Times approached him with queries about a Covid-era loan given to one of his businesses.

The newspaper reported that he attempted to wind-up one of his businesses before settling one of two bounceback loans he took out.

Mr Alaba is now thought to be repaying both loans

Bounceback loans worth between £2,000 and £50,000 were given to small and medium sized businesses during the pandemic to help them through the cashflow turmoil caused by the periods of lockdown.

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.”

Mr Alaba is understood to have agreed for the whip to be suspended while the investigation takes place. The suspension is a precautionary step and implies no finding of wrongdoing.

Mr Alaba's response

Bayo Alaba MP said, "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."

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