The UK’s economic secretary to the Treasury has resigned despite being found to have not breached the Ministerial Code.
In a letter to Sir Keir Starmer confirming her departure, Tulip Siddiq said continuing in her role was “a distraction from the work of the Government” and thanked the Prime Minister for the “confidence you have shown in me in recent weeks”.
She added that her “loyalty is and always will be to this Labour Government and the programme of national renewal and transformation it has embarked upon”.
Starmer responded that he accepted her resignation with “sadness”, adding: “You have made a difficult decision and want to be clear that the door remains open for you going forward.”
Siddiq referred herself for investigation by Sir Laurie Magnus, the Prime Minister’s ethics adviser, over claims that she benefitted from a number of London properties owned by allies of her mother’s sister, the deposed former Bangladeshi prime minister Sheikh Hasina.
It was claimed that she received a London flat in 2004 from Abdul Motalif, a developer tied to her aunt’s regime. She also reportedly stayed in another property linked to an ally of Hasina’s regime, which was gifted to her teenage sister in 2009.
Separate reports claimed she lives in a Finchley rental property owned by Abdul Karim Nazim, a member of the UK branch of the Awami League, Hasina’s political party, and an ally of the former PM.
It has also been claimed that Siddiq, along with Hasina, facilitated a corrupt agreement with Russia in 2013, which reportedly resulted in the embezzlement of up to £3.9bn from the £10bn project.
Hasina was deposed last year after a 20-year rule marked by allegations of corruption and human rights abuses, including accusations of crimes against humanity.
Siddiq denies involvement, and The Guardian reported that she described the claims as a “political hit job”.
Following his investigation, Magnus concluded that Siddiq had not breached the Ministerial Code through her use or ownership of the properties.
“I have not identified evidence of improprieties connected with 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,” he said in a letter to the Prime Minister.
“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.”
He also stated that Siddiq had denied any involvement in the nuclear deal with Russia, adding that he accepted this “at face value” but that “this visit may form part of investigations in Bangladesh”.
Magnus did criticise Siddiq, however, suggesting it was “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”.
The Conservatives criticised the delay to Siddiq’s departure, with the party’s leader Kemi Badenoch calling it “weak leadership from a weak Prime Minister”.
“It was clear at the weekend that the anti-corruption minister’s position was completely untenable,” she said in a statement.
“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.”
