Labour minister Tulip Siddiq, who oversees tackling corruption in the UK’s financial sector, received a central London flat from a businessman linked to a dictator in Bangladesh.
The city minister was given the two-bedroom apartment near King’s Cross in 2004 without making any payment, according to the Financial Times.
The property was donated by Abdul Motalif, a developer connected to the recently deposed Awami League party, which was led by Siddiq’s aunt, Sheikh Hasina.
The flat was originally purchased in January 2001 for £195,000 and remains under Siddiq’s ownership.
Tulip Siddiq was given the two-bedroom apartment near King’s Cross in 2004 without making any payment
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Land Registry documents show the lease on the property was extended in 2018 for £90,000.
The property is currently rented out, which is understood to be within rules and regulations.
Motalif confirmed to the Financial Times that he had purchased the property but declined to comment further.
Sheikh Hasina, 77, served as Bangladesh’s longest-serving prime minister before being ousted from power last year.
During her 15-year rule, her regime was marked by the persecution of opponents, who were attacked, arrested and secretly imprisoned.
Her niece Siddiq, 42, has previously praised her aunt as a “strong female role model” for her daughter and once managed a media campaign for Hasina while she was in exile in the UK.
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Sheikh Hasina served as Bangladesh’s longest-serving prime minister before being ousted from power last year
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Siddiq is currently under investigation by Bangladesh’s anti-corruption commission alongside her mother Sheikh Rehana Siddiq, 69, and aunt Sheikh Hasina.
The probe concerns allegations that the family illegally siphoned off £4billion intended for a nuclear plant and eight other large-scale infrastructure projects.
The investigation was launched after opposition politician Bobby Hajjaj filed a High Court petition in September.
The petition noted Siddiq “was instrumental in managing the affairs and coordinating meetings with Russian government officials regarding the Rooppur Nuclear Power Plant project.”
The Labour minister “categorically” denies any suggestion that the property has links to support for the Awami League.
A source close to the minister provided an alternative explanation for the property transfer.
They said: “Following financial support provided by Tulip’s parents to an acquaintance during a challenging time in his life, he subsequently transferred a property he then owned into Tulip’s ownership as an act of gratitude for her parents’ support.”
Sources close to Siddiq have dismissed the corruption investigation claims as “spurious”.
Labour leader Sir Keir Starmer has maintained his full confidence in Siddiq despite the ongoing investigations.
Number 10 confirmed on Friday night that this position remains unchanged.
Conservative MP Joe Robertson has questioned how Siddiq could “possibly continue in post whilst under such a serious investigation”.
A spokesman for Siddiq said: “Any suggestion that Tulip Siddiq’s ownership of this property, or any other property is in any way linked to support for the Awami League would be categorically wrong.”