Treasury minister Siddiq quits after ethics investigation
Tulip Siddiq quit as a Treasury minister after the ministerial standards watchdog said it was “regrettable” she was “not more alert” to the reputational risk caused by her links to her aunt’s political movement in Bangladesh.
Ms Siddiq’s aunt is the former Bangladeshi prime minister Sheikh Hasina, who fled into exile after being deposed last year and is facing an investigation by an anti-corruption commission in Bangladesh, with the Labour MP reportedly named as part of the case.
Ms Siddiq – who as City minister had responsibility for tackling financial corruption – has also come under intense scrutiny over her use of properties in London linked to her aunt’s allies.
In her resignation letter the Hampstead and Highgate MP, a parliamentary neighbour of the Prime Minister, told Sir Keir Starmer that she had not breached the ministerial code but that continuing in her role would be a “distraction”.
Sir Keir said he accepted her resignation “with sadness” and said she had made a “difficult decision” and that he wanted “to be clear that the door remains open for you going forward”.
She had referred herself to the Prime Minister’s ethics tsar, Sir Laurie Magnus, who said he had not found any breach of the ministerial code but advised that Sir Keir reconsider her responsibilities.
After a “fact-finding” exercise, Sir Laurie told the Prime Minister: “Given the nature of Ms Siddiq’s ministerial responsibilities, which include the promotion of the UK financial services sector and the inherent probity of its regulatory framework as a core component of the UK economy and its growth, it is regrettable that she was not more alert to the potential reputational risks – both to her and the Government – arising from her close family’s association with Bangladesh.
“I would not advise that this shortcoming should be taken as a breach of the Ministerial Code, but you will want to consider her ongoing responsibilities in the light of this.”
Sir Keir received the independent adviser on ministerial standards’ findings on Tuesday and spoke to Ms Siddiq by phone, after which she resigned.
The minister was alleged to have been involved in brokering a 2013 deal with Russia for a nuclear power plant in Bangladesh in which large sums of cash are said to have been embezzled.
Sir Laurie said: “Ms Siddiq has explained the context of her visit to Moscow in 2013, including her attendance at the signing ceremony for the nuclear power plant.
“She has stated that the visit was solely for the social purpose of joining family and enjoying the tourist access to the city facilitated as a result of her aunt’s official visit as head of state.
“Ms Siddiq is clear that she had no involvement in any inter-governmental discussions between Bangladesh and Russia or any form of official role. I accept this at face value, but should note that this visit may form part of investigations in Bangladesh.”
She was also given an apartment in King’s Cross in 2004 by Abdul Motalif, an associate of members of the Awami League party in Bangladesh.
Sir Laurie said: “Ms Siddiq acknowledges that, over an extended period, she was unaware of the origins of her ownership of her flat in Kings Cross, despite having signed a Land Registry transfer form relating to the gift at the time.”
She “remained under the impression that her parents had given the flat to her, having purchased it from the previous owner”.
The public were “inadvertently misled” as a result in replies to questions about the flat, which was “an unfortunate misunderstanding which led to Ms Siddiq’s public correction of the origins of her ownership after she became a minister”.
For a period up to 2018 she also lived in a flat in Hampstead, north London, which had been given to her sister in 2009 by lawyer Moin Ghani, who had represented the Hasina administration.
“Ms Siddiq has provided considerable background information to confirm that the tax treatment and funding arrangements were in order, but – in light of the age of the transactions – has not at this point been able to provide conclusive documentation to this effect,” Sir Laurie said.
“Given the intensity of the allegations concerning these transactions, it is regrettable (even if understandable in the context of their heritage) that this conclusive information is not available.”
Ms Siddiq said: “Having conducted an in-depth review of the matter at my request, Sir Laurie has confirmed that I have not breached the Ministerial Code. As he notes, there is no evidence to suggest that I have acted improperly in relation to the properties I have owned or lived in.
“My family connections are a matter of public record, and when I became a minister I provided the full details of my relationships and private interests to the Government.
“However it is clear that continuing in my role as Economic Secretary to the Treasury is likely to be a distraction from the work of Government.”
Sir Keir told her: “I appreciate that to end ongoing distraction from delivering our agenda to change Britain, you have made a difficult decision and want to be clear that the door remains open for you going forward.”
But Tory leader Kemi Badenoch said Sir Keir had “dithered and delayed” to protect his ally.
She said: “It was clear at the weekend that the anti-corruption minister’s position was completely untenable. Yet Keir Starmer dithered and delayed to protect his close friend.
“Even now, as Bangladesh files a criminal case against Tulip Siddiq, he expresses ‘sadness’ at her inevitable resignation.
“Weak leadership from a weak Prime Minister.”
Liberal Democrat Cabinet Office spokeswoman Sarah Olney said: “It’s right Tulip Siddiq resigned, you can’t have an anti-corruption minister mired in a corruption scandal.”
Emma Reynolds has replaced Ms Siddiq in the Treasury, while former Resolution Foundation chief Torsten Bell has become a junior minister in the Department for Work and Pensions.
Published: by Radio NewsHub