Treasury minister Tulip Siddiq has resigned after rising strain over an anti-corruption investigation in Bangladesh.

She had referred herself to the prime minister’s requirements adviser, Sir Laurie Magnus, after questions on hyperlinks to her aunt, who was ousted final yr as Bangladesh’s prime minister.

Sir Laurie mentioned he had “not recognized proof of improprieties” but it surely was “regrettable” that Siddiq had not been extra alert to the “potential reputational dangers” of the ties to her aunt.

Siddiq mentioned persevering with in her position could be “a distraction” for the federal government however insisted she had completed nothing improper.

In a letter accepting Siddiq’s resignation, Sir Keir mentioned the “door stays open” for her.

Siddiq, whose position as Financial Secretary to the Treasury included tackling corruption in UK monetary markets, was named last month in an investigation into claims her family embezzled up to £3.9bn from infrastructure spending in Bangladesh.

Her aunt is the previous Bangladeshi prime minister Sheikh Hasina, head of the Awami League, who fled into exile after being deposed final yr.

Siddiq, Labour MP for Hampstead and Highgate, additionally got here underneath intense scrutiny over her use of properties in London linked to her aunt’s allies.

The Financial Times reported that one of many properties, a flat in King’s Cross, had been given to her by an individual linked with the just lately ousted Bangladeshi authorities.

According to the Mail on Sunday, in 2022 Siddiq had denied the flat was a present and insisted her dad and mom had purchased it for her and had threatened the paper with authorized motion stopping publication of a narrative.

Labour sources subsequently advised the newspaper the flat had been gifted to Siddiq by a property developer with alleged hyperlinks to her aunt.

Sir Laurie spent eight days investigating the allegations after Siddiq referred herself to the requirements watchdog.

In his letter, Sir Laurie mentioned Siddiq “acknowledges that, over an prolonged interval, she was unaware of the origins of her possession of her flat in Kings Cross, regardless of having signed a Land Registry switch kind regarding the reward on the time”.

He mentioned the MP “remained underneath the impression that her dad and mom had given the flat to her, having bought it from the earlier proprietor”.

This had led to the general public being “inadvertently misled” in regards to the identification of the donor of the flat, added Sir Laurie.

Sir Laurie mentioned this was an “unlucky misunderstanding” which had led to Siddiq issuing a public correction of “the origins of her possession after she turned a minister”.

Within the letter, Sir Laurie mentioned: “A scarcity of information and lapse of time has meant that, sadly, I’ve not been capable of receive complete consolation in relation to all of the UK property-related issues referred to within the media.

“Nonetheless, I’ve not recognized proof of improprieties linked with the actions taken by Ms Siddiq and/or her husband in relation to their possession or occupation of the London properties which have been the topic of press consideration.

“Equally, I’ve discovered no suggestion of any uncommon monetary preparations regarding Ms Siddiq’s possession or occupation of the properties in query involving the Awami League (or its affiliated organisations) or the state of Bangladesh.

“As well as, I’ve discovered no proof to counsel that Ms Siddiq’s and/or her husband’s monetary belongings, as disclosed to me, derive from something apart from professional means.”

In Bangladesh, there may be an ongoing anti-corruption probe primarily based on a sequence of allegations made by Bobby Hajjaj, a senior political opponent of Siddiq’s aunt Hasina.

Court docket paperwork seen by the BBC present that Hajjaj accused Siddiq of serving to her aunt to dealer a take care of Russia in 2013 that over-inflated the worth of a brand new nuclear energy plant in Bangladesh.

She attended the ability plant’s signing ceremony and was pictured with Russian president Vladimir Putin.

Sir Laurie mentioned Siddiq had “defined the context” of that go to as “solely for the social goal of becoming a member of household and having fun with the vacationer entry to the town facilitated because of her aunt’s official go to as head of state”.

He mentioned Siddiq had been clear that she had “no involvement in any inter-governmental discussions between Bangladesh and Russia or any type of official position”.

“I settle for this at face worth,” he mentioned, “however ought to be aware that this go to could kind a part of investigations in Bangladesh.”

Sir Laurie added that Siddiq was a “outstanding member of one of many principal households concerned in Bangladesh politics” which had “uncovered her to allegations of misconduct by affiliation”.

“Given the character of Ms Siddiq’s ministerial obligations… it’s regrettable that she was no more alert to the potential reputational dangers – each to her and the federal government – arising from her shut household’s affiliation with Bangladesh,” he mentioned.

In a letter responding to Siddiq, Sir Keir mentioned he accepted her resignation “with unhappiness” and thanked her for her “dedication” throughout her time as a minister.

He mentioned Sir Laurie had assured him that “he discovered no breach of the ministerial code and no proof of monetary improprieties on [Siddiq’s] half”.

Sir Keir’s Holborn and St Pancras constituency is subsequent door to Tulip Siddiq’s Hampstead and Highgate seat.

They have been each elected MPs for the primary time in 2015 and have loved an in depth working relationship.

Labour MP Emma Reynolds has been appointed the brand new Financial Secretary to the Treasury to exchange Siddiq.

Reynolds first turned an MP in 2010, earlier than dropping her seat in 2019. She returned to parliament in 2024’s normal election after a stint as managing director at a monetary {and professional} companies lobbying agency.

Conservative chief Kemi Badenoch mentioned the prime minister had “dithered and delayed to guard” Siddiq.

Writing on X, she mentioned: “It was clear on the weekend that the anti-corruption minister’s place was utterly untenable. But Keir Starmer dithered and delayed to guard his shut good friend.

“Even now, as Bangladesh information a legal case towards Tulip Siddiq, he expresses ‘unhappiness’ at her inevitable resignation.

“Weak management from a weak prime minister.”

Extra reporting by Tom McArthur