Keir Starmer has given his full support to Tulip Siddiq, the Treasury minister, after Bangladesh’s anti-corruption commission accused her and family members of embezzling billions as part of a deal for a nuclear power plant.
Siddiq’s role as economic secretary to the Treasury includes responsibility for tackling financial corruption. She has denied any involvement in the claims.
While Downing Street strongly defended her, it is another headache for Starmer after a turbulent few months that included the sudden departure of another minister, the former transport secretary Louise Haigh.
The Conservatives in the UK immediately seized on the allegations, saying it was “the latest stain on Keir Starmer’s judgment”.
Siddiq is the niece of Sheikh Hasina, the former prime minister of Bangladesh who ruled the country for 15 years before being toppled in a revolution in August.
Hasina’s regime was accused of authoritarianism, human rights abuse and rampant corruption, and she and her ministers are now facing an investigation for mass murder and crimes against humanity. An arrest warrant was recently issued for Hasina, who is now living in exile in India and has denied the allegations.
The inquiry into Siddiq was opened as part of a wider investigation by Bangladesh’s anti-corruption commission, which is looking into crimes and corruption that took place under Hasina’s rule.
The submission to the anti-corruption commission has alleged that Siddiq was “instrumental in managing the affairs and coordinating meetings with Russian government officials” to orchestrate the deal and that Hasina and family members received “30% of the embezzled funds in exchange for their mediation”.
The deal was signed in the Kremlin in 2013, with photos showing that Siddiq was present, standing alongside Hasina and Vladimir Putin, Russia’s president. Siddiq had previously denied any wrongdoing and said she was present at the signing as part of a “family occasion”.
In response to the allegations, Starmer’s official spokesperson said the prime minister had full confidence in Siddiq, and confirmed that she would be continuing to handle anti-corruption issues.
“The minister has denied any involvement,” he said. “Obviously, I can’t speak to the Bangladeshi anti-corruption commission, and also can’t comment on unconfirmed media speculation.”
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In the register of minister’s interests released last month, Siddiq had recorded that her aunt “was previously prime minister of Bangladesh”. Starmer’s spokesperson said she had also recused herself from any decision-making connected to Bangladesh.
Asked whether her involvement in the deal nonetheless represented a conflict of interest, the spokesperson said: “I can’t speak to events that happened prior to a minister’s time in government.”
He added there was a “very clear declaration process” for ministers, which had been followed.
Hasina, Siddiq’s mother, Sheikh Rehana, and other family members have also been named as part of the investigation. It relates to a £10bn deal struck with Russia in 2013 to build a nuclear power plant in Bangladesh, from which Siddiq, Hasina and other family members are accused of taking £4bn in kickbacks.
It is understood that Bangladeshi authorities have not contacted Siddiq as part of the investigation, which was based on allegations raised by Bobby Hajjaj, who was in opposition under Hasina’s rule.