Labour MP Bayo Alaba suspended after questions over Covid bounceback loan

Labour MP Bayo Alaba suspended after questions over Covid bounceback loan He attempted to wind up one of his businesses before settling one of two bounceback loans he took out, reports suggest - Bookmark - CommentsGo to comments A Labour MP has been suspended as he faces questions over taxpayer-funded Covid business loans. Bayo Alaba, the MP for Southend East and Rochford, is understood to have referred himself to the Labour Party for investigation after The Times approached him with queries about a Covid-era loan given to one of his businesses. The newspaper reported that he attempted to wind up one of his businesses before settling one of two bounceback loans he took out. Mr Alaba is now repaying both loans, The Times reports. The Labour Party said the matters will be “investigated in line with the party’s rules”. The Independent has approached the MP for comment. Mike Wood, the shadow Cabinet Office minister, said Mr Alaba must explain what happened with the company. Mr Wood told The Times: “These are concerning revelations and Alaba clearly has questions to answer. “Alaba needs to come clean about whether he tried to avoid paying his debts, and ministers should tell us if they had to intervene to stop it. The public deserve the truth.” Bounceback loans worth between £2,000 and £50,000 were given to small and medium sized businesses during the pandemic to help them through the cashflow turmoil caused by the periods of lockdown. A Labour Party spokesperson said: “Bayo Alaba MP has referred himself to the Labour Party so that these matters can be investigated in line with the party’s rules. “The Labour Party expects the highest standards from our elected representatives and we have robust processes in place to ensure those high standards are upheld. “We cannot comment further while the investigation is ongoing.” Mr Alaba is understood to have agreed for the whip to be suspended while the investigation takes place. The suspension is a precautionary step and implies no finding of wrongdoing. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments