The Treasury minister Tulip Siddiq has been questioned by the Cabinet Office’s propriety and ethics team after Bangladesh’s anti-corruption commission accused her and family members of embezzling billions for a nuclear power plant.
The Labour MP, who denies allegations that she helped broker a deal with Russia to build the energy project, reportedly told a government official that she was the victim of a “political hit job”.
Whitehall sources confirmed reports that Siddiq, who is responsible for tackling corruption in Britain’s markets, had a discussion with the ethics team last week, but said it was as part of a factchecking process after the allegations, rather than a formal interview.
They indicated that it did not mean there was an investigation into the City minister, and that the prime minister’s ethics adviser – who has the power to launch an inquiry independently – had decided not to do so. This could change if new evidence came to light.
Siddiq’s explanation about her involvement in the £10bn Rooppur power plant project, which took place in her office on Thursday, according to the Sunday Times, was “accepted at face value” by officials.
The Treasury minister 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.
Siddiq is alleged to have been involved in brokering the 2013 deal with Russia and was photographed with Vladimir Putin and her aunt at a signing ceremony. The Treasury minister has previously said she only posed for the Russian president after he asked her aunt: “Is your family here? I’d like a picture.”
A Cabinet Office spokesperson said: “As previously stated, the minister has denied any involvement.”
The prime minister’s official spokesman said Keir Starmer continued to have confidence in Siddiq who maintains her responsibilities as a minister.
Pressed about whether there was any conflict of interest in her involvement in the 2013 deal, the spokesman 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.
Matt Vickers, a Conservative home affairs spokesman, said: “It is high time she came clean. The British public deserve a government that is focused on their priorities, not distracted by yet another scandal.”
Sources close to Siddiq have said allegations that she coordinated meetings between Bangladeshi and Russian officials are “trumped-up charges” and “completely politically motivated”.
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The Sunday Times reported that Siddiq had explained she visited Moscow more than a decade ago to see her aunt because it was easier to fly to Russia than Bangladesh.
The inquiry into the Labour minister 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 commission alleged that Siddiq was “instrumental in managing the affairs and coordinating meetings with Russian government officials” to orchestrate the deal and that family members received a 30% cut.
It is understood that Bangladeshi authorities have not yet contacted Siddiq as part of the investigation, which was based on allegations raised by Bobby Hajjaj, who was in opposition under Hasina’s rule.
Hasina’s regime was accused of authoritarianism, human rights abuses and rampant corruption, and she and her ministers are facing an investigation for mass murder and crimes against humanity. She is living in exile in India and has denied the allegations.