Under fire fraud minister Tulip Siddiq resigns amid corruption probe

14 January 2025, 16:14 | Updated: 14 January 2025, 16:32

Labour's anti-fraud minister has resigned amid allegations of corruption.

Ms Siddiq is the niece of Sheikh Hasina, the exiled former prime minister of Bangladesh who was removed from power last year following an uprising.

Its new government has accused Hasina of committing “massacres, killings and crimes against humanity”, including the deaths of around 800 protesters.

Ms Siddiq is alleged to have been involved in brokering a 2013 deal with Russia for a nuclear power plant in Bangladesh in which large sums of cash are said to have been embezzled.

She has also come under intense scrutiny over her use of properties in London linked to her aunt's allies.

Read more: Tulip Siddiq investigation must find out if money was ‘looted from a third world country,’ says Bangladeshi politician

In her letter to the prime minister, Ms Siddiq insisted that while she had "not breached the ministerial code" she did not want to become a "distraction" to the Treasury.

Sir Keir Starmer accepted her resignation with "sadness."

He added: "I also wish to be clear that Sir Laurie Magnus as Independent Adviser has assured me he found no breach of the ministerial code and no evidence of financial improprieties on your part."

Currently, there is no evidence Ms Siddiq or the Labour Party had any involvement in illicit funds being moved from Bangladesh to the UK or any other related allegations.

Bangladeshi anti-corruption officials have claimed that Ms Siddiq and her family embezzled the equivalent of several billion pounds from nine large building projects, including a nuclear power plant.

Ms Siddiq thanked Sir Keir Starmer for the "confidence" he has shown her but said her continuing in post "is likely to be a distraction".

She said: "Having conducted an in-depth review of the matter at my request, Sir Laurie has confirmed that I have not breached the Ministerial Code. As he notes, there is no evidence to suggest that I have acted improperly in relation to the properties I have owned or lived in.

Natasha Clark on the Tulip Siddiq probe

"My family connections are a matter of public record, and when I became a minister I provided the full details of my relationships and private interests to the Government.

"However it is clear that continuing in my role as Economic Secretary to the Treasury is likely to be a distraction from the work of Government. My loyalty is and always will be to this Labour Government and the programme of national renewal and transformation it has embarked upon. I have therefore decided to resign from my ministerial position."

In response, Sir Keir Starmer said the "door remains open" for Tulip Siddiq.

The Prime Minister said: "Thank you for your letter. It is with sadness I accept your resignation from your ministerial role.

"I want to thank you for your commitment during your time as Economic Secretary to the Treasury including spearheading the rollout of banking hubs and opening our 100th site, leading our thinking on financial inclusion, and contributing to the success of the Chancellor's first Mansion House speech.

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"In accepting your resignation, I also wish to be clear that Sir Laurie Magnus as independent adviser has assured me he found no breach of the Ministerial Code and no evidence of financial improprieties on your part. I want to thank you for self-referring to the independent adviser and for your full co-operation with the establishment of facts.

"I appreciate that to end ongoing distraction from delivering our agenda to change Britain, you have made a difficult decision and want to be clear that the door remains open for you going forward."

Wycombe MP Emma Reynolds has been appointed to replace Ms Siddiq in the Treasury.

Speaking to LBC’s Tom Swarbrick, Bangladeshi politician Bobby Hajjaj, who is a political opponent of Hasina, has said the government must conduct a full investigation into allegations to ensure Ms Siddiq did not “loot a third-world country”.

He said: “The moment there is clear evidence, there is no need for investigation, then you just proceed with the law.

“The investigation is to find the clear evidence because there's so much doubt, so much circumstantial evidence.“We believe that even from our end will very soon get clear evidence. But because of all of these situations, the need is there for an investigation to find this clear evidence or clear her name.”

On whether an investigation needs to prove that Tulip Siddiq did not profit from her relationship with her aunt, Hajjaj said: “Yes, absolutely.

“Because if it did, you looted from a third-world country to fund your campaign, to fund sort of your activity, then you are as culpable as Sheikh Hasina is of destroying this country.

“I think there is a certain possibility and there's enough of a possibility that it deserves a thorough investigation.”