Starmer’s close associate Tulip Siddiq resigns as Treasury minister amidst corruption investigation involving her influential Bangladeshi relatives – watchdog questions her ability to handle anti-corruption responsibilities

Tulip Siddiq quit government today saying she did not want to be a ‘distraction’ after a sleaze probe condemned her ‘regrettable’ behaviour.

The Treasury minister is facing criticism for her influential family in Bangladesh, as she is being scrutinized in connection with a corruption probe involving her aunt, the former Prime Minister Sheikh Hasina, who is currently in exile.

Ms Siddiq has also come under intense scrutiny over her use of properties in London linked to her aunt’s allies. 

She wrote to Keir Starmer, a close ally and neighboring MP in the capital, highlighting that the government’s independent adviser Sir Laurie Magnus had determined that she had not violated the ministerial code.

Ms Siddiq said she had not acted ‘improperly’ and had provided ‘full details of her relationships and private interests’ to the government. 

However, she admitted that remaining in her position as a Treasury minister could divert attention from the government’s responsibilities, following Sir Laurie’s recommendations that she should evaluate whether she can effectively carry out anti-corruption responsibilities.

Sir Keir expressed ‘sadness’ at the departure and left the door open for a return at a later date. Emma Reynolds was immediately installed as a replacement Economic Secretary to the Treasury. 

But the Tories accused Sir Keir of ‘dither and delay’ over Ms Siddiq’s fate, saying it had been clear for days that her position was ‘untenable’. 

Ms Siddiq has been using properties linked to ‘despot’ Sheikh Hasina, who was deposed last summer after 20 years in power amid allegations of corruption and brutality. 

Despite her claims that the pair ‘never talk about politics’, blog posts and the discovery of Ms Siddiq’s Labour posters in her aunt’s former palace suggest otherwise.

Ms Siddiq, her aunt and other family members are reportedly being investigated over allegations that billions were embezzled from a nuclear power plant project. The minister denies any wrongdoing.

Sir Laurie wrote in his letter to Sir Keir: ‘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 Laurie said her association with ‘one of the principal families involved in Bangladesh politics’ had ‘exposed her to allegations of misconduct by association’.

He said the former Treasury minister ‘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,’ adding: ‘Ms Siddiq remained under the impression that her parents had given the flat to her, having purchased it from the previous owner.’

Turning to a visit to Moscow, Russia, in 2013, including her attendance at the signing ceremony for a nuclear power plant, Sir Laurie said: ‘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.’

Sir Laurie said he had not been able to get ‘comprehensive comfort’ about the circumstances of properties linked to Ms Siddiq.

However, he stressed he had no evidence of ‘improprieties’ or ‘unusual financial arrangements’.

‘A lack of records and lapse of time has meant that, unfortunately, I have not been able to obtain comprehensive comfort in relation to all the UK property-related matters referred to in the media,’ the adviser wrote.

‘However, I have not identified evidence of improprieties connected with the actions taken by Ms Siddiq and/or her husband in relation to their ownership or occupation of the London properties that have been the subject of press attention.

‘Similarly, I have found no suggestion of any unusual financial arrangements relating to Ms Siddiq’s ownership or occupation of the properties in question involving the Awami League (or its affiliated organisations) or the state of Bangladesh.

‘In addition, I have found no evidence to suggest that Ms Siddiq’s and/or her husband’s financial assets, as disclosed to me, derive from anything other than legitimate means.’

In her letter to Sir Keir, 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. My loyalty is and always will be to this Labour Government and the programme of national renewal and transformation it has embarked upon. I have therefore decided to resign from my ministerial position.’

The PM said he was accepting Ms Siddiq’s resignation ‘with sadness’ and the ‘door remains open’ for her to return to government.

‘I want to thank you for your commitment during your time as Economic Secretary to the Treasury including spearheading the rollout of banking hubs and opening our 100th site, leading our thinking on financial inclusion, and contributing to the success of the Chancellor’s first Mansion House speech,’ he said.

‘In accepting your resignation, 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. I want to thank you for self-referring to the independent adviser and for your full co-operation with the establishment of facts.

‘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.’

Tory leader Kemi Badenoch 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.’ 

Only this morning a fellow minister was insisting that Ms Siddiq was ‘getting on with doing her job’.

Asked how she could carry on doing her job while the investigation takes place, Dan Jarvis told Times Radio: ‘There is now an independent process where he’s (ethics adviser Sir Laurie Magnus) looking to establish the facts of this case and he will make a judgment. I am not independent in the sense that I’m a ministerial colleague of hers, so it’s not for me to make a judgment.

‘I’m sure that (the ethics adviser) will.’

Pressed again on whether she should stand aside, he said: ‘She’s getting on with doing her job… corruption is a process that’s managed across government, between the Home Office, the Treasury… the Prime Minister’s independent adviser is looking carefully at the circumstances of this particular case and the Prime Minister will ultimately make a decision.’