A Labour MP faces an internal investigation after questions emerged about a taxpayer-funded Covid loan.
Bayo Alaba, MP for Southend East and Rochford, referred himself to the Labour Party. The party then suspended his parliamentary whip while it examines the matter. Alaba became an MP in 2024 after building a career in business and the music industry. He previously ran several companies, although some later entered liquidation.
Questions now focus on Alaba Properties Ltd, which reportedly received a government-backed Bounce Back Loan during the Covid pandemic. Reports also suggest someone tried to wind up the company in March 2022. However, authorities blocked the process twice that year. The authorities cited concerns about the company’s removal from the official register. Company rules generally prevent businesses from completing a voluntary strike-off while they have outstanding debts.
As a result, the circumstances surrounding the company’s attempted closure have attracted political attention. The Labour Party confirmed that Alaba referred himself for investigation. A party spokesperson said officials would examine the matter under Labour’s rules. However, the party declined to provide further details while its investigation continues.
Alaba has rejected suggestions that he attempted to avoid his financial responsibilities. Instead, he said he remains committed to meeting his obligations in full. “Like many businesses and entrepreneurs, I accessed financial support during the Covid-19 pandemic,” Alaba said.
He also insisted that he had made no attempt to avoid his financial commitments. Furthermore, he pledged to settle the outstanding liability in full. The government introduced Bounce Back Loans during the Covid crisis to help businesses survive severe economic disruption. Thousands of companies across Britain used the emergency scheme to maintain operations and protect jobs.
Nevertheless, the programme later faced significant scrutiny. Authorities investigated cases involving suspected fraud, inappropriate applications, and unpaid loans. The latest case adds further political pressure around the management of pandemic support. Meanwhile, opposition politicians have demanded greater clarity from the Labour MP.
Mike Wood, the Conservative shadow Cabinet Office minister, described the reports as concerning. He also argued that Alaba now has questions to answer. Alaba entered Parliament after winning Southend East and Rochford at the 2024 general election. Before entering politics, he worked as an entrepreneur and previously served as a paratrooper.
His business background included several ventures within the music sector. However, some of those companies later went into liquidation, according to reports. The investigation will now examine the circumstances surrounding the Covid loan and the company’s financial position.
At present, the Labour Party has not announced any findings against Alaba. Therefore, the investigation does not establish that he committed any wrongdoing. His suspension means he will currently sit in Parliament without the Labour whip. The party could take further action if its investigation identifies rule breaches.
For now, however, officials have not announced what disciplinary measures they might consider. The controversy also highlights wider concerns surrounding government-backed pandemic loans. The emergency programme helped many businesses during an unprecedented economic crisis. At the same time, taxpayers ultimately funded the scheme, increasing scrutiny over companies that received financial support.
Consequently, questions about loan repayments and company closures continue to attract political attention. The Labour Party will now assess the available information before deciding its next steps. Meanwhile, Alaba maintains that he intends to meet his financial obligations.
The outcome of the investigation could determine whether the MP faces further action from the party. Until officials reach a conclusion, Alaba remains an elected representative for Southend East and Rochford.
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