Ms Siddiq’s aunt is the former Bangladeshi prime minister Sheikh Hasina, who fled into exile after being deposed last year and is now facing a corruption investigation.
Political reporter @fayebrownSky
Tuesday 14 January 2025 17:56, UK
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Tulip Siddiq has resigned as a Treasury minister after controversy over links to her aunt’s ousted political movement in Bangladesh.
In a letter to Sir Keir Starmer, the Hampstead and Highgate MP said while she had “not breached the ministerial code”, continuing in her post would be “a distraction from the work of the government”.
Politics Live: Reaction to minister’s resignation
Ms Siddiq has been under pressure over allegations about properties linked to her aunt Sheikh Hasina, who was deposed as Bangladesh’s prime minister in August following an uprising against her 20-year leadership, and now faces a corruption probe.
She previously insisted she had “done nothing wrong” but referred herself to the prime minister’s ethics watchdog, Sir Laurie Magnus, last week.
In a letter to Sir Keir, the independent adviser called it “regrettable” Ms Siddiq “was not more alert to the potential reputational risks” arising from her close family’s association with Bangladesh.
He said this “shortcoming” should not be taken as a breach of the ministerial code, “but you will want to consider her ongoing responsibilities in the light of this”.
Sir Laurie reviewed Ms Siddiq’s financial affairs and the background of properties she owns or has occupied and said he found no evidence of any “improprieties” in her actions.
In his reply, Sir Keir said he has accepted Ms Siddiq’s resignation “with sadness”, adding: “I also wish to be clear that Sir Laurie Magnus as Independent Adviser has assured me he found no breach of the ministerial code and no evidence of financial improprieties on your part.”
He praised her for making the “difficult decision” to resign nonetheless and said “the door remains open for you” going forward.
Ms Siddiq has been an MP since 2015 and is probably best known for campaigning for the release of her constituent Nazanin Zaghari Ratcliffe, who was detained in Iran for six years.
Downing Street has announced Wycombe MP Emma Reynolds has been appointed to replace her in the Treasury, and Torsten Bell will take Ms Reynolds’ previous role in the Department for Work and Pensions.
Ms Siddiq had the role of city minister, which meant she was responsible for illicit finance and corruption.
The UK Anti-Corruption Coalition had called for Ms Siddiq to resign earlier this week, accusing her of a “serious conflict of interests” regardless of whether Sir Laurie found she had breached the ministerial code.
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In a post on X, Tory leader Kemi Badenoch accused Sir Keir of “dither and delay to protect his close friend”, saying it became clear over the weekend Ms Siddiq’s position “was completely untenable”.
Sarah Olney, the Liberal Democrat’s Cabinet Office spokesperson, said: “After years of Conservative sleaze and scandal, people rightly expected better from this government.”
We expect embezzled assets to be returned to Bangladesh
A spokesman for Bangladesh’s interim leader Professor Muhammad Yunus said: “We remain committed to accountability and justice and will be working with partners around the world to return the stolen funds to the people of Bangladesh.”
Prof Yunus said there will be a thorough investigation into properties and assets “tied to stolen Bangladeshi funds, including those linked to individuals with connections to the previous regime” and if it is proven they have benefitted from embezzlement “we expect those assets to be returned to Bangladesh, where they rightfully belong”.
“Tulip Siddiq may not have entirely understood the source of the money and property that she was enjoying in London, but she knows now and should seek forgiveness from the people of Bangladesh,” he added.
What are the allegations facing Ms Siddiq?
It is alleged that Ms Siddiq lived in properties in London linked to allies of Ms Hasina, who is facing an investigation by an anti-corruption commission in Bangladesh.
This includes a £2.1m house in Finchley which the MP rents and which is owned by businessman Abdul Karim Nazim, an executive member of her aunt’s Awami League party’s UK branch.
In referring herself to Sir Laurie for investigation, Ms Siddiq said much of the reporting surrounding her financial affairs and links to Bangladesh had been inaccurate and “I am clear that I have done nothing wrong”.
Ms Siddiq has also been named in Bangladesh court documents as allegedly helping her aunt broker a 2013 deal with Russia for the Rooppur nuclear power plant, which she denies.
Prof Yunus’ spokesman said the alleged $5 billion misappropriation of funds linked to the power plant project has “not only robbed the people of Bangladesh but also disrupted the country’s progress towards economic stability” and has left the country “with a significant financial deficit”.
Bangladesh’s anti-corruption commission has also claimed Ms Siddiq was involved in the illegal allocation of plots of land in the diplomatic zone of a luxury development near Dhaka to her mother, sister and brother.
A Labour source said she totally refutes the claims and had not been contacted by anyone on the matter.
Ms Siddiq had been due to join a delegation heading to China last week, but stayed in the UK to fight to clear her name.
But further pressure mounted after Sky News discovered historical blog posts she wrote describing campaigning with her aunt in Bangladesh’s general election and celebrating her victory.
Ms Siddiq had previously said she and her aunt never spoke about politics.
The Times also reported the MP’s Labour Party flyers and a thank you note to local Labour Party members after she was elected as an MP were found in the palace in Dhaka that belonged to her aunt.
