British Minister for Financial Services and Anti-Corruption, Tulip Siddiq, resigned on Tuesday after persistent scrutiny over her financial connections to her aunt, Sheikh Hasina, the former Prime Minister of Bangladesh ousted in 2024.
Siddiq, 42, who had denied any wrongdoing, stepped down, citing concerns that her position had become a distraction to the government’s work. In her resignation letter to Prime Minister Keir Starmer, she emphasized her commitment to ensuring government priorities remained the focus.
Political Fallout
This resignation marks the second ministerial departure in two months for Starmer’s Labour government, which has seen approval ratings dip since its general election victory in July. Siddiq’s portfolio included responsibility for financial services policy and combating money laundering, critical areas of governance.
Emma Reynolds, previously a pensions minister, has been appointed to succeed Siddiq.
Ethics Inquiry and Controversies
The government’s ethics adviser, while concluding that Siddiq had not breached the ministerial code, criticized her for failing to fully anticipate the reputational risks stemming from her family’s ties to Bangladesh.
Siddiq came under scrutiny after being named in Bangladesh’s investigation into alleged financial irregularities in awarding a $12.65 billion nuclear power project contract. Authorities claimed both Sheikh Hasina and Siddiq might have benefited from funds siphoned off during the project.
Further allegations surfaced regarding Siddiq’s links to properties in the UK tied to her aunt and her supporters. She lived in a north London house gifted to her family by Moin Ghani, a lawyer representing Hasina’s government. Additionally, Siddiq reportedly acquired a property in 2004 from a developer linked to the Awami League without payment, according to the Financial Times.
Sheikh Hasina’s Legal Troubles
Sheikh Hasina, who led Bangladesh from 2009 until her ousting, is under investigation for corruption and money laundering. Denying any wrongdoing, Hasina has fled Bangladesh and remains the focus of the country’s anti-corruption commission.
Wider Implications
Siddiq’s resignation adds pressure on the Starmer government, already reeling from the resignation of Transport Minister Louise Haigh in late 2024 over a past criminal offense. The series of departures has sparked debates over ministerial conduct and accountability in the Labour government.
As the scandal unfolds, the focus remains on Siddiq’s role in addressing the controversies surrounding her and their potential impact on the UK’s broader anti-corruption agenda.
