A Labour MP is under investigation over allegations he tried to avoid repaying a taxpayer-funded Covid loan, reports BritPanorama.
Southend MP Bayo Alaba was blocked from winding up a property firm that received a £50,000 handout during the pandemic. Records show Alaba Properties Ltd attempted to dissolve itself in March 2022, but previous accounts indicated the firm still had an outstanding £50,000 loan.
Firms generally cannot be closed down unless they are free of outstanding debts, with creditors able to object and halt a winding-up motion if debts remain unpaid. The 54-year-old former paratrooper has refrained from answering questions regarding which of his firms took out loans but acknowledged to The Times that he accessed financial support for struggling businesses.
Two attempts to wind up Alaba Properties Ltd were blocked—one in March 2022 and another in August 2022—after an unnamed third party appealed. Records indicated that “cause [was] shown why the company should not be struck off.” The Department for Business has not clarified if they were the party involved.
Questions also arise over whether Alaba’s firm was eligible for the loan, as prior rules stipulated that applicants must have been in business on March 1, 2020, while Alaba Properties was filing accounts as a “dormant company.” Previously, Alaba ran music and nightclub businesses, several of which had failed, before entering the House of Commons in 2024.
Mike Wood, the Conservative shadow Cabinet Office minister, expressed concerns, stating, “These are concerning revelations, and Alaba clearly has questions to answer. 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.”
The Labour Party has since suspended the whip from Alaba. A spokesman conveyed, “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.”
Alaba told The Times, “Like many businesses and entrepreneurs, I accessed financial support during the Covid-19 pandemic. 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 co-operate fully.” He added that he was in the process of repaying the loan.
The unfolding situation has significant implications for transparency in public office and the accountability of elected representatives, particularly in the context of financial support during crises. The inquiries into Alaba’s conduct highlight the importance of upholding the integrity of public office amidst challenges to fiscal responsibility.
