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A Labour MP has been suspended from the party amid questions surrounding whether he tried to avoid repaying a taxpayer-funded Covid loan.
Bayo Alaba, the MP for Southend East & Rochford, refused to answer questions about his alleged attempt to wind up one of his businesses before settling a loan.
GB News understands Mr Alaba has agreed to be administratively suspended from the Labour Party while this process is ongoing.
It is also understood that the Labour Whip will also be suspended while an investigation is ongoing, with Mr Bayo's full cooperation.
A Labour spokesman told GB News: "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."
They added: "We cannot comment further while the investigation is ongoing."
In a statement provided to GB News, Mr Alaba said: "Like many businesses and entrepreneurs, I accessed financial support during the COVID-19 pandemic.
"I am proud of my background as a small business owner, and of the work I have done since entering politics to support the business community, in part because I know just how difficult things can be.
"There has been no attempt to avoid my financial obligations, and I am wholeheartedly committed to ensuring that the liability is met in full. I’ve referred myself to the Labour Party’s investigations process on the matter and I’ll cooperate fully."
Elected during the 2024 General Election, he made history as the constituency's first-ever Labour MP.
Mr Alaba spent 11 years in the Parachute Regiment reserves and ran businesses in the East London creative and night-time hospitality sectors for over two decades.
Mr Alaba is a co-owner of Alaba Properties Ltd, whose financial records show it took out a £50,000 bounce-back loan, the maximum allocation possible under the government scheme, during the pandemic
According to Companies House records, an attempt was made to dissolve Alaba Properties Ltd in March 2022.
Legally, a company can only be wound up if it has no outstanding debts.
Mike Wood, the shadow Cabinet Office minister, urged Mr Alaba to explain what happened with the company.
He 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."
