Labour MP Bayo Alaba has been suspended by the party after facing questions over taxpayer-funded Covid pandemic loans taken out for his business.
Mr Alaba, who represents Southend East and Rochford, referred himself to Labour Party officials following a national newspaper investigation into the funding.
An investigation by The Times reported that he attempted to wind up one of his businesses before settling one of two loans he received during the coronavirus pandemic.
The Labour Party confirmed that it has suspended the whip from Mr Alaba and launched an internal investigation into the matter.
A Labour spokesman said: "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 spokesman added: "We cannot comment further while the investigation is ongoing."
Suspending the parliamentary whip removes an MP from their party's official organization in the House of Commons, requiring them to sit as an independent lawmaker during an inquiry.
Companies House Filings and Bounce Back Loans
Elected to Parliament in 2024, former paratrooper Mr Alaba previously ran a series of businesses in the music sector, with some later being liquidated, the paper reported.
He remains a co-owner of Alaba Properties Ltd, which appeared to have a bounceback loan taken out against it.
Bounce back loans were state-backed emergency loans created by the British government during the pandemic to support small and medium-sized enterprises.
The Times reported that an attempt was made to wind up Alaba Properties Ltd in March 2022. Under UK company rules, a voluntary strike-off can only proceed if a business has no outstanding debts.
However, the application was blocked twice that year because "cause has been shown why the above company should not be struck off the register", the newspaper reported.
Response and Opposition Criticism
Mr Alaba defended his record in a statement to the newspaper, stating that he was committed to resolving any debts.
"Like many businesses and entrepreneurs, I accessed financial support during the Covid-19 pandemic," Mr Alaba told the paper.
"There has been no attempt to avoid my financial obligations, and I am wholeheartedly committed to ensuring that the liability is met in full," he added.
The findings triggered swift criticism from opposition politicians in Parliament.
Mike Wood, the shadow Cabinet Office minister, called on the lawmaker to explain the circumstances surrounding the loans. "These are concerning revelations and Alaba clearly has questions to answer," Mr Wood said.
