Tulip Siddiq resigns as Treasury minister

Treasury minister Tulip Siddiq has resigned after rising strain over an anti-corruption investigation in Bangladesh.

She had referred herself to the prime minister’s requirements adviser, Sir Laurie Magnus, after questions on hyperlinks to her aunt, who was ousted final yr as Bangladesh’s prime minister.

Sir Laurie mentioned he had “not recognized proof of improprieties” however it was “regrettable” that Siddiq had not been extra alert to the “potential reputational dangers” of the ties to her aunt.

Siddiq mentioned persevering with in her function can be “a distraction” for the federal government however insisted she had executed nothing flawed.

Earlier than her resignation was introduced, Siddiq had been named in a second investigation in Bangladesh.

Conservative chief Kemi Badenoch has mentioned the prime minister “dithered and delayed to guard” her.

Writing on X, she mentioned: “It was clear on the weekend that the anti-corruption minister’s place was fully untenable. But Keir Starmer dithered and delayed to guard his shut good friend.

“Even now, as Bangladesh information a legal case towards Tulip Siddiq, he expresses ‘disappointment’ at her inevitable resignation.

“Weak management from a weak prime minister.”

In a letter accepting Siddiq’s resignation, Sir Keir mentioned the “door stays open” for her.

Siddiq, whose function as Financial Secretary to the Treasury included tackling corruption in UK monetary markets, was named final month in an investigation into claims her household embezzled as much as £3.9bn from infrastructure spending in Bangladesh.

Her aunt is the previous Bangladeshi prime minister Sheikh Hasina, head of the Awami League, who fled into exile after being deposed final yr.

Siddiq, Labour MP for Hampstead and Highgate, additionally got here beneath intense scrutiny over her use of properties in London linked to her aunt’s allies.

The Monetary Instances reported that one of many properties, a flat in King’s Cross, had been given to her by an individual linked with the not too long ago ousted Bangladeshi authorities.

Based on the Mail on Sunday, in 2022 Siddiq had denied the flat was a present and insisted her dad and mom had purchased it for her and had threatened the paper with authorized motion stopping publication of a narrative.

Labour sources subsequently instructed the newspaper the flat had been gifted to Siddiq by a property developer with alleged hyperlinks to her aunt.

Sir Laurie spent eight days investigating the allegations after Siddiq referred herself to the requirements watchdog.

In his letter, Sir Laurie mentioned Siddiq “acknowledges that, over an prolonged interval, she was unaware of the origins of her possession of her flat in Kings Cross, regardless of having signed a Land Registry switch kind regarding the present on the time”.

He mentioned the MP “remained beneath the impression that her dad and mom had given the flat to her, having bought it from the earlier proprietor”.

This had led to the general public being “inadvertently misled” concerning the identification of the donor of the flat, added Sir Laurie.

Sir Laurie mentioned this was an “unlucky misunderstanding” which had led to Siddiq issuing a public correction of “the origins of her possession after she turned a minister”.

Within the letter, Sir Laurie mentioned: “A scarcity of information and lapse of time has meant that, sadly, I’ve not been in a position to receive complete consolation in relation to all of the UK property-related issues referred to within the media.

“Nevertheless, I’ve not recognized proof of improprieties linked with the actions taken by Ms Siddiq and/or her husband in relation to their possession or occupation of the London properties which were the topic of press consideration.

“Equally, I’ve discovered no suggestion of any uncommon monetary preparations regarding Ms Siddiq’s possession or occupation of the properties in query involving the Awami League (or its affiliated organisations) or the state of Bangladesh.

“As well as, I’ve discovered no proof to recommend that Ms Siddiq’s and/or her husband’s monetary property, as disclosed to me, derive from something apart from authentic means.”

In Bangladesh, there’s an ongoing anti-corruption probe based mostly on a collection of allegations made by Bobby Hajjaj, a senior political opponent of Siddiq’s aunt Hasina.

Courtroom paperwork seen by the BBC present that Hajjaj accused Siddiq of serving to her aunt to dealer a cope with Russia in 2013 that over-inflated the value of a brand new nuclear energy plant in Bangladesh.

She attended the ability plant’s signing ceremony and was pictured with Russian President Vladimir Putin.

Sir Laurie mentioned Siddiq had “defined the context” of that go to as “solely for the social function of becoming a member of household and having fun with the vacationer entry to the town facilitated because of her aunt’s official go to as head of state”.

He mentioned Siddiq had been clear that she had “no involvement in any inter-governmental discussions between Bangladesh and Russia or any type of official function”.

“I settle for this at face worth,” he mentioned, “however ought to notice that this go to might kind a part of investigations in Bangladesh.”

Sir Laurie added that Siddiq was a “distinguished member of one of many principal households concerned in Bangladesh politics” which had “uncovered her to allegations of misconduct by affiliation”.

“Given the character of Ms Siddiq’s ministerial duties… it’s regrettable that she was no more alert to the potential reputational dangers – each to her and the federal government – arising from her shut household’s affiliation with Bangladesh,” he mentioned.

In a letter responding to Siddiq, Sir Keir mentioned he accepted her resignation “with disappointment” and thanked her for her “dedication” throughout her time as a minister.

He mentioned Sir Laurie had assured him that “he discovered no breach of the ministerial code and no proof of economic improprieties on [Siddiq’s] half”.

Sir Keir’s Holborn and St Pancras constituency is subsequent door to Tulip Siddiq’s Hampstead and Highgate seat.

They had been each elected MPs for the primary time in 2015 and have loved a detailed working relationship.

Labour MP Emma Reynolds has been appointed the brand new Financial Secretary to the Treasury to exchange Siddiq.

Reynolds first turned an MP in 2010, earlier than shedding her seat in 2019. She returned to parliament in 2024’s normal election after a stint as managing director at a monetary {and professional} companies lobbying agency.

Forward of her resignation, Siddiq had been named in a second investigation in Bangladesh.

Bangladesh’s Anti-Corruption Fee filed a “First Data Report”, which the BBC has seen. The doc names Tulip Siddiq as a part of allegations towards Sheikh Hasina and her administration.

The Anti-Corruption Fee alleges that Siddiq assisted her mom, Rehana Siddique, in influencing Hasina to “misuse her energy and safe a plot within the extremely priceless diplomatic space of East-Purachal New City”.

The doc says that Rehana Siddique “hid her possession of properties throughout the RAJUK space in Dhaka metropolis”.

In relation to Tulip Siddiq, the doc says: “Ms. Tulip Rizwana Siddique…used her particular powers, to immediately affect and help Ms. Sheikh Hasina, the previous Prime Minister of the Individuals’s Republic of Bangladesh…influencing her to misuse her energy as the very best official and public servant of the federal government to breach the belief criminally and, by way of her, influenced the general public servants accountable for the venture allocation.”

A spokesperson for Tulip Siddiq mentioned: “No proof has been offered for these allegations. Tulip Siddiq has not been contacted by anybody on the matter and completely denies the claims.”

Further reporting by Tom McArthur and Alex Smith