Labour has suspended the whip from Bayo Alaba after questions were raised about Covid-era bounceback loans taken out by businesses linked to the Southend East & Rochford MP.
Alaba referred himself to Labour’s internal investigations process after the Times asked about a loan given to one of his businesses during the pandemic.
The party suspended the whip after being contacted for comment and said it had opened an internal investigation.
According to the Times, Alaba appears to have taken out two bounceback loans during Covid. Questions remain over an attempt to wind up one of his companies in 2022 and whether his businesses were eligible for the loans.
Before becoming an MP in 2024, Alaba ran several businesses, including Alaba Properties Ltd. The company’s accounts suggest it received a loan, according to an expert consulted by the Times.
Companies House records show two attempts to wind up the company were blocked in 2022. A company can only be struck off when it has no outstanding debts.
It is not known who intervened, but the Department for Business introduced an objections process to prevent business owners from using strike-off procedures to avoid repaying bounceback loans.
Alaba confirmed that he took out two bounceback loans and is understood to be repaying them, according to the Times. He did not answer questions on why he tried to wind up Alaba Properties Ltd or whether his companies were eligible for the loans.
“Like many businesses and entrepreneurs, I accessed financial support during the Covid-19 pandemic,” Alaba said. “I am wholeheartedly committed to ensuring that the liability is met in full.”
“I’ve referred myself to the Labour party’s investigations process on the matter and I’ll cooperate fully,” he added.
A Labour spokesperson said the party expected the highest standards from its elected representatives and would investigate the matter. The party said it could not comment further while the investigation was ongoing.
