// BBC UK NEWS — CRONACA
Labour MP suspended as party launches investigation into Covid loans
A Labour MP has been suspended from the party after a newspaper report questioned whether he had tried to avoid repaying a government Covid loan.
Bayo Alaba referred himself to the Labour Party over the issue and an internal investigation has been launched.
The MP for Southend East and Rochford has also had the whip suspended - meaning he will now sit as an independent MP - although it is understood the investigation does not at this stage imply any wrongdoing.
A Labour Party spokesperson said: "Bayo Alaba MP has referred himself to the Labour Party so that these matters can be investigated in line with the party's rules."
It continued: "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.
"We cannot comment further while the investigation is ongoing."
The Times newspaper has reported, external allegations that Alaba attempted to wind up one of his business before settling one of two bounce back loans he had taken out.
During the pandemic, taxpayer-funded loans of between £2,000 and £50,000 were given to small and medium-sized businesses to ease financial problems.
Alaba has admitted taking out two bounce back loans but he insisted he has not tried to avoid his financial obligations and it is understood he believes they will be repaid in full by the end of this year.
Alaba is the registered co-owner of a company called Alaba Properties. Records in Companies House show an attempt was made to wind up the company in March 2022, however, this was blocked for unstated reasons.