Labour MP under investigation by party over Covid loans to his businesses
Summary
Labour MP Bayo Alaba has been suspended by his party after questions arose about Covid loans his businesses received during the pandemic. He has referred himself to the Labour party’s investigation and is cooperating while repaying the loans.Key Facts
- Bayo Alaba is a Labour MP for Southend East & Rochford.
- Before becoming an MP in 2024, Alaba owned several businesses.
- His businesses took out two bounceback loans during Covid-19 to help with financial struggles.
- There were attempts to wind up (close) one of his companies, Alaba Properties Ltd, in 2022, but these attempts were blocked.
- Closing a company with outstanding debts is normally not allowed.
- The government set up a process to stop people from abusing bounceback loans by closing their companies to avoid paying back.
- Alaba says he is paying back the loans in full and has asked the Labour party to investigate the matter.
- Labour says it is carrying out an internal investigation and expects high standards from its members.
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