LABOUR MP ALABA SUSPENDED OVER COVID LOAN INVESTIGATION

Bayo Alaba, Labour MP for Southend East and Rochford elected in 2024, has been suspended from the Labour Party whilst an investigation takes place. According to reports, the investigation concerns allegations that Alaba attempted to avoid repaying a taxpayer-funded Covid loan. Alaba referred himself to the party and agreed to administrative suspension while the process continues. A Labour Party spokesperson confirmed the suspension, stating the party expects the highest standards from elected representatives and has robust processes in place to uphold those standards.

The Times reports that Alaba refused to answer questions about his alleged attempt to wind up one of his businesses before settling a loan given during the coronavirus pandemic. Alaba co-ran several businesses in the nightlife and music sector, some of which entered liquidation, and remains co-owner of Alaba Properties Ltd, which appears to have taken out a bounceback loan during the pandemic. According to reports, Alaba confirmed he had taken out two bounceback loans but would not clarify which companies received them or answer specific questions about Alaba Properties Ltd's eligibility. It is understood he is now repaying the loans. A loans expert told The Times that accounts filed by Alaba Properties Ltd are consistent with a company that had taken out such a loan.

Mike Wood, the Conservatives' shadow Cabinet Office minister, called on Alaba to explain what happened with the company. Wood stated that Alaba needs to clarify whether he tried to avoid paying his debts and that ministers should explain if intervention was required to prevent this. The Labour Party spokesperson said the party cannot comment further whilst the investigation remains ongoing.