He attempted to wind up one of his businesses before settling one of two bounceback loans he took out, reports suggest
A Labour MP has been suspended as he faces questions over taxpayer-funded Covid business loans.
Bayo Alaba, the MP for Southend East and Rochford, is understood to have 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 repaying both loans, The Times reports.
The Labour Party said the matters will be “investigated in line with the party’s rules”.
Mike Wood, the shadow Cabinet Office minister, said Mr Alaba must explain what happened with the company.
“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 public deserve the truth.”
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.
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.
Just more from the elected representative class.
Getting elected for far far too many is an opportunity to fill one’s boots. Starmer, Mandelson, Farage, it just goes on an on.
Ah well at least there’s always more cuts and higher taxes to pay for it.
And don’t think we are any better up here in Scotland.