City minister Tulip Siddiq named in Bangladesh corruption claim

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Tulip Siddiq, Treasury minister responsible for the City of London, has been named in a Bangladesh court application that accused her family of embezzling $5bn, with the country’s High Court ordering a probe into the affair.

Siddiq has declined to comment publicly on the claims relating to former prime minister Sheikh Hasina — Siddiq’s aunt — and a $12bn nuclear power plant that Bangladesh is building with Russian assistance.

A Downing Street spokesperson said that the prime minister was not concerned about the allegations and that “the minister has denied any involvement in the allegations made”.

“So far it is just media speculation in relation to an investigation. We have not seen any formal details and the minister has not been contacted by the relevant authorities,” they said.

“There is a process for ministers to declare relevant interests, the minister has done so where relevant,” they added.

Siddiq is economic secretary to the UK Treasury and a close friend of Prime Minister Sir Keir Starmer. She has been MP for Hampstead and Highgate since 2015.

The court application was brought by Bobby Hajjaj, a political opponent of Sheikh Hasina and chair of Bangladesh’s Nationalist Democratic Movement party, who has alleged corruption at the Rooppur nuclear power plant project.

At an estimated cost of about $12bn, it is one of the largest ever infrastructure projects in Bangladesh’s history. The power plant is being built by Rosatom, Russia’s state-owned nuclear giant.

Hajjaj alleged in a Bangladesh High Court filing in September that the nuclear plant’s price was inflated in the deal with Rosatom and that $5bn was distributed to Sheikh Hasina and her family.

The High Court earlier this week ordered the Anti-Corruption Commission to investigate Hajjaj’s embezzlement claims, according to court documents seen by the Financial Times. The ACC did not respond to requests for comment on Thursday.

“A significant portion of this money has ended up in the UK,” Hajjaj told the FT, urging Starmer’s government to “strongly investigate” the allegations regarding Siddiq. “She should ideally be suspended,” he said.

Labour officials said they were trying to establish the facts of the matter and said Siddiq was not commenting for now. She has told colleagues she has not been contacted by the ACC.

“Anyone can make a complaint to the ACC,” said one Labour official.

In January 2013 Siddiq travelled to the Kremlin with Sheikh Hasina as part of a delegation signing a nuclear and arms deal between Bangladesh and Russia.

The event saw Vladimir Putin grant Bangladesh a $1bn loan for weapons purchase and $500mn to help build Rooppur, the south Asian country’s first nuclear power plant.

Sheikh Hasina, who was pictured standing alongside Siddiq and Putin, said the financial assistance for the nuclear power plant was “a shiny example of our deeper engagement”.

Downing Street insisted Starmer had full confidence in Siddiq, but the allegations have caused nervousness in senior government circles. “It’s complicated,” said one senior government official.

Last month Starmer swiftly sacked Louise Haigh, his transport secretary, after revelations emerged over a previous fraud conviction related to mobile phones, fearing a drip of negative stories about the minister.

Siddiq represents a neighbouring seat to Starmer in north London and the two MPs are close family friends.

Sheikh Hasina fled to India in early August after student-led protests ended her 15-year rule. Her Awami League has been accused by political rivals and human rights groups of rigging elections, carrying out extrajudicial killings and capturing state institutions.

Sheikh Hasina and associates face a number of investigations by Bangladesh’s caretaker government over the alleged looting of state coffers.

In a speech broadcast earlier this month Sheikh Hasina accused Bangladesh’s interim leader and Nobel laureate Muhammad Yunus of being the “mastermind” of the violence and uprising that lead to her ousting. Her son has also denied allegations of corruption and authoritarian abuses.

The Awami League alleges that Yunus has “weaponised” the justice system and law enforcement agencies against them. It did not immediately respond to a request for comment on the ACC probe.

A spokesman for the interim government declined to comment.