Tulip Siddiq under pressure to resign amid property scandal tied to Bangladesh‍‍`s Awami League

Tulip Siddiq, the UK’s City Minister, is facing growing pressure to step down after being caught up in a property scandal connected to Bangladesh’s former Awami League (AL) government, reports the Financial Times (FT). 

The accusations revolve around her links to multiple properties tied to her aunt, Sheikh Hasina, the former Prime Minister of Bangladesh, and her party, the Awami League, which has been accused of misappropriating funds from the country’s banking system – claims they firmly deny.

As Tulip Siddiq is tasked with leading anti-corruption efforts in the UK, the scandal has raised eyebrows, prompting Shadow Home Secretary Chris Philp to demand answers. 

“It is high time for Tulip Siddiq to explain the source of her wealth, and whether any of it comes from the proceeds of her aunt‍‍`s alleged corrupt dealings,” he said. Philp has also urged Prime Minister Keir Starmer to take action, adding that failing to address these concerns shows the Prime Minister’s "lack of strength or integrity."

Despite Starmer’s continued support for Siddiq, insiders in the Labour Party admit the situation is becoming increasingly difficult to defend. 

A senior Labour official told the FT, “It’s becoming a millstone,” suggesting her position is becoming harder to justify amid mounting scrutiny of her financial dealings.

Last Friday, the FT revealed that Siddiq became the owner of a two-bedroom flat near London’s King’s Cross back in 2004 without paying for it. 

The property had been bought three years earlier by Abdul Motalif, a developer with ties to senior Awami League members, for £195,000. 

Siddiq still owns the flat, and a similar one in the area recently sold for £650,000.

More controversy surfaced when The Sunday Times reported that Siddiq had lived in another property in Hampstead, which had been transferred to her sister by Moin Ghani, a lawyer with close connections to the Awami League. 

Sources confirmed her residence in the property, while Ghani, who once listed his address as Siddiq’s King’s Cross flat, refused to comment.

Adding to the scrutiny, Siddiq currently rents a £2.1 million home in East Finchley, London, which is owned by Abdul Karim, an executive member of the UK branch of the Awami League.

According to Land Registry records, she moved into the house shortly after it was purchased in July 2022, though it lies outside her parliamentary constituency. 

An ally of Siddiq clarified that she is paying “market rates” for the property and that the arrangement with Karim had been properly disclosed to parliamentary authorities.

Siddiq’s aunt, Sheikh Hasina, was ousted from power last year following student protests and a violent government response. 

Since then, the interim government in Bangladesh has accused senior Awami League officials of diverting funds from the country’s banks to purchase properties abroad – allegations Hasina and her party have denied.

Despite the pressure, Tulip Siddiq maintains that she has done nothing wrong. 

However, her explanation of how she came to own the King’s Cross flat has changed over time. 

Initially, she claimed that her parents bought the property, according to The Mail on Sunday. 

But a source close to the situation has since clarified that Siddiq’s parents had financially supported Abdul Motalif, and in return, he transferred the property to her as an “act of gratitude.” 

The source added that because it was a gift, Siddiq did not pay any stamp duty.

On Sunday, the source further explained that Motalif had repaid the financial support to Siddiq’s parents before the property was transferred, which legally exempted her from stamp duty. 

Siddiq has also sought legal advice to confirm this.

Speaking on the case, a senior UK official involved in fighting kleptocracy remarked, “The challenge here is that ‘I got a gift from this guy out of gratitude because my politically exposed family helped him out’ is the sort of account we spend our time telling banks is not good enough.”

As the scandal deepens, the calls for Tulip Siddiq to provide full transparency and possibly step down continue to grow. 

Whether she can weather this storm remains to be seen.