British Financial Services Minister Resigns Amid Controversy Over Family Ties to Bangladesh

Tulip Siddiq, the British minister responsible for financial services and tackling economic crime, has resigned following weeks of scrutiny over her financial connections to her aunt Sheikh Hasina, who was ousted last year as Bangladesh’s prime minister.

The 42-year-old Siddiq, who had repeatedly denied any wrongdoing, stepped down despite Prime Minister Keir Starmer expressing “full confidence” in her just last week. Her resignation marks the second departure of a government minister in two months, dealing a fresh blow to Starmer, whose approval ratings have dropped since his Labour Party secured a general election victory in July.

Siddiq had been appointed to oversee financial services policy, including measures against money laundering, after the election. However, her ties to Hasina, who is under investigation in Bangladesh for corruption and money laundering, have drawn increasing attention.

In her resignation letter to Starmer, Siddiq stated that her position had become “likely to be a distraction from the work of the government.” Meanwhile, the government’s ethics adviser, in his own letter to Starmer released concurrently, remarked that although Siddiq had not breached the ministerial code of conduct, it was “regrettable she was not more alert to the potential reputational risks” stemming from her family’s connections to Bangladesh. The ethics adviser concluded, “You will want to consider her ongoing responsibilities in the light of this.”

Starmer responded swiftly to Siddiq’s resignation, appointing former pensions minister Emma Reynolds to take over her portfolio.

Hasina, who governed Bangladesh from 2009 until her removal from office, denies allegations of corruption. However, investigations are ongoing into claims that she and Siddiq may have benefitted from financial irregularities in the awarding of a $12.65 billion nuclear power project contract. The anti-corruption commission in Bangladesh has alleged widespread financial mismanagement involving billions of dollars.

Adding to the controversy, Siddiq has faced scrutiny over properties in London linked to Hasina’s associates. One such property, located in north London, was given to Siddiq’s family in 2009 by Moin Ghani, a Bangladeshi lawyer who has represented Hasina’s government. Additionally, Siddiq acquired another London property in 2004 without payment from a developer associated with Hasina’s Awami League political party, according to documents filed with Companies House and the Land Registry as well as a report in the Financial Times.

Bangladesh’s interim government, led by Muhammad Yunus, issued a statement acknowledging Siddiq’s potential lack of awareness regarding the origins of certain assets she had used in London. The statement read, “She knows now and should seek forgiveness from the people of Bangladesh.” The government also emphasized its commitment to recovering stolen assets, announcing ongoing investigations with international partners to return funds tied to corruption.

Siddiq was named in December as part of Bangladesh’s inquiry into whether her family was involved in embezzling funds from infrastructure projects. These allegations have added significant pressure on Siddiq as questions arose about her role in benefiting from these dealings.

Her resignation follows the departure of Louise Haigh, Britain’s transport minister, late last year. Haigh stepped down after admitting to a minor criminal offense involving a mobile phone she had wrongly reported as stolen before entering government.

While Siddiq’s resignation does not imply guilt, her departure signals a challenging moment for the Labour government as it faces mounting scrutiny over ethical standards and its ability to maintain public trust.

By fLEXI tEAM