Zarah Sultana referred to parliamentary watchdog over handling of Your Party’s finances and members’ data

Following the referral of Ms Sultana’s alleged misconduct to the Parliamentary Commissioner for Standards, Daniel Greenberg must decide whether there are grounds to investigate the Coventry South MP for allegedly breaching the MPs’ code of conduct during the early stages of Your Party’s formation.

If Mr Greenberg concludes Ms Sultana, 32, did break any parliamentary rules, the case will be forwarded to a committee of backbench MPs to decide whether she should be sanctioned.

Punishments for MPs breaching standards can range from written warnings, to suspension without pay or expulsion from Parliament.

Your Party appears to be on the brink of collapse before it has even decided what to name itself following a fractious public breakdown in relations between Ms Sultana and Mr Corbyn.

Back in July, a virtual meeting of socialist politicans and activists voted to form a left-wing party fronted by Ms Sultana and Mr Corbyn, which the Islington North MP had abstained from.

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Shortly after the vote, Ms Sultana announced she had quit Labour after having the party whip withdrawn the year prior for voting against keeping the two-child benefit cap in the Commons.

But Mr Corbyn — who was suspended from Labour five years ago by his successor Sir Keir Starmer for claiming the scale of antisemitism under his leadership was “dramatically overstated” — was reportedly “frustrated” at Ms Sultana announcing she was co-leading the party before a formal leadership contest had been agreed.

Tensions within Your Party continued to simmer in September when Ms Sultana sent out a formal membership invitation by email to those who had expressed interest in Your Party, which saw more than 20,000 sign ups.

Membership fees were received by MOU Operations Ltd, a company formed in April in which Mr Corbyn and his team had no direct involvement.

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Within hours, Mr Corbyn and a group of pro-Gaza Independent MPs released a joint statement urging supporters to ignore the “unauthorised” invitation and cancel any direct debits.

Ms Sultana defended her actions “to safeguard the grassroots involvement” and claimed she had been subjected to a “sexist boys’ club”.

She instructed lawyers to sue the authors of “false and defamatory statements” concerning her membership portal’s launch, although she later desisted from legal action “as an act of good faith”.

Earlier this month, Blackburn MP Adnan Hussain left Your Party over what he described as “persistent infighting”.

Meanwhile, Andrew Feinstein, Beth Winter and Jamie Driscoll resigned as directors of MOU, with Ms Sultana taking sole control of the company last month.

Legal issues reportedly prevented members who had signed up with the portal controlled by MOU Operations Ltd from transferring their data to the new system.

Reports suggested the total amount of money involved is around £1,300,000, with £800,000 from initial donations and the rest from Ms Sultana membership launch.

Ms Sultana offered to transfer £600,000, arguing the rest should be retained in case of future expenses, only to be rebuffed by Mr Corbyn’s allies who accused her of playing “political games” with supporters’ cash.

In a statement, Ms Sultana told GB News: “This complaint has been made by someone outside the party seemingly intending to cause trouble for it. I have acted in good faith at all times and I am confident that the Parliamentary Commissioner will agree.”

When approached by the People’s Channel, the Parliamentary Commissioner for Standards said they were unable to confirm whether a complaint against Ms Sultana had been received.

A spokesman for Mr Corbyn said: “Jeremy does not know who has taken this action and has not taken this action himself.”

Your Party were contacted for comment.