The Labour Party is investigating its MP Bayo Alaba over questions about Covid loans given to his businesses, according to The Times.
Alaba, the MP for Southend East & Rochford, referred himself to the party for investigation after The Times asked about a loan given to one of his businesses during the pandemic. The party suspended the whip from Alaba and launched an internal investigation.
The newspaper reports that Alaba appears to have taken out two bounceback loans during Covid, but questions remain about an attempt to wind up one of his companies in 2022 and whether his companies were eligible in the first place.
Before being elected as an MP in 2024, Alaba ran several businesses, including Alaba Properties Ltd, whose accounts suggest it took out a loan, according to an expert The Times spoke to.
Companies House records show two attempts to wind up the company, which is only allowed when it has no outstanding debts, were blocked in 2022. It is unknown who made this intervention, but the Department for Business introduced an objections process to tackle misuse of bounceback loans by business owners attempting to avoid repayments.
Alaba has confirmed he took out two bounceback loans and is understood to be repaying them, according to The Times. He did not answer questions on why he tried to wind up Alaba Properties Ltd and whether his companies were eligible for loans.
In a statement, he said: “Like many businesses and entrepreneurs, I accessed financial support during the Covid-19 pandemic. 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 cooperate fully.”
A Labour spokesperson said Alaba had referred the matter to the party, which it would investigate. “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.”
Mike Wood, the shadow Cabinet Office minister, said: “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.”