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Key Labour Minister Resigns Over Allegations of Corruption Links

Tulip Siddiq previously referred herself to the government’s standards adviser and has now resigned from government
Image: House of Commons
Image: House of Commons

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Tulip Siddiq, one of the PM’s key allies, has resigned from her government position after questions arose over her connection to corruption in Bangladesh. The Treasury minister wrote in her resignation letter that despite it being confirmed by the ethics adviser that she had not breached the Ministerial Code, continuing in her role was ‘likely to be a distraction from the work of Government’.

Who is Tulip Siddiq?

Siddiq has served as a Labour MP since 2015 for the constituencies of Hampstead and Highgate, previously named Hampstead and Kilburn before the boundaries changed in 2024. It neighbours the PM’s Holborn and St Pancras seat.

She took on the role of economic secretary to the Treasury in July 2024 after Labour’s election win, meaning she was responsible for tackling financial corruption.

How is she connected to the Bangladeshi government?

Siddiq’s aunt, Sheikh Hasina, served as the Prime Minister of Bangladesh from 1996 to 2001, and again from 2009 to 2024. Her autocratic leadership was defined by violence, injustice, oppression and election manipulation. It has been widely agreed that Hasina’s premiership oversaw huge democratic backsliding for the country.

Hasina was ousted in July last year following a mass uprising led by a student organisation. The protest became the ‘July Massacre’, resulting in over 1,500 deaths and at least 18,000 left injured. She quickly resigned and fled to India.

Siddiq used to act as spokesperson for the Awami League, her aunt’s political party, back in 2009. Shortly after being elected for the first time in 2015, she also attended an Awami League rally in the UK, where she thanked the crowd for their support in helping her win.

In 2019, Siddiq denied involvement in the politics of Bangladesh.

What allegations is she facing?

Due to the controversial nature of Hasina’s premiership, questions have been raised over how corrupt her regime may have been, with probes looking into kleptocracy, and in particular, embezzlement. 

The Observer revealed last year that businesses were being investigated by Bangladeshi authorities on whether they had links to the Awami League. It was thought they had illicitly acquired billions of pounds.

The Times then began reporting on the topic, and started to raise questions over whether Tulip Siddiq personally benefited from a number of properties paid for by individuals linked to the party, via corrupt measures.

It was found by multiple newspapers that Siddiq and her family were gifted 3 properties. There is a flat in King’s Cross (a free gift from a businessman linked to the Bangladeshi regime, that she now owns), a Hampstead flat (used by her sister) and her residence in Finchley, a £2.1m house where she pays rent, all now under scrutiny.

Siddiq’s name has appeared in three investigations taking place in Bangladesh: one related to embezzlement from a nuclear power project, another for allegedly obtaining plots in the diplomatic zone of a development near Dhaka via fraudulent measures, and a third announced on Wednesday that concerns ‘money laundering, power misuse, and illegally occupying Bangladesh government property’.

The ousting of Sheikh Hasina has prompted all these questions into the potential corrupt nature of Siddiq being a beneficiary to her aunt’s regime. After receiving increased attention, she referred herself to the government’s watchdog to be investigated for corruption.

Why is it getting so much attention, and how will it affect Starmer?

It is perhaps the fact that Tulip Siddiq held the position of anti-corruption minister that has inflamed the amount of attention this story has received. Despite her rejection of any wrongdoing, the irony proved too much to ignore.

This is not the first cabinet resignation related to fraud that Starmer has had to deal with. Louise Haigh, the former transport secretary, resigned in November after it was revealed that she pleaded guilty to a fraud offence in 2013.

Image: House of Commons

However, this resignation is likely to have a larger impact for Starmer. He enjoyed a far closer relationship with Tulip Siddiq.

Additionally, Haigh resigned extremely quickly after questions were raised about her past offence – less than a day. It took a lot more time for Siddiq to resign despite growing pressure, and she received far more support from the PM than Haigh.

Starmer ended his reply to Tulip Siddiq’s resignation letter claiming he wanted ‘to be clear that the door remains open for you going forward’. His reply to Louise Haigh, however, read ‘I know you still have a huge contribution to make in the future’.

The two resignations were a subject of debate at this week’s PMQs, when Kemi Badenoch claimed Starmer ‘knowingly appointed a convicted fraudster’ with regards to Louise Haigh. She also asked ‘can the country afford four more years of his terrible judgement?’. Starmer brushed off her comments as ‘complete nonsense’ and continued his support of Tulip Siddiq, claiming there was ‘no wrongdoing’ on her part.

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bob
bob
25 days ago

so interesting thankyou !