A Labour minister faces being caught up in a reported investigation by the Bangladeshi government over allegations of embezzlement.
Tulip Siddiq, the Labour MP for Hampstead and Highgate, is accused of helping her aunt, Sheikh Hasina, the recently ousted prime minister of Bangladesh, to embezzle funds, according to media reports.
Labour Party insiders characterised the allegations as “spurious claims” and said Ms Siddiq, the City minister, had not been contacted over the matter.
If confirmed, the investigation risks sparking a diplomatic row between the UK and Bangladesh.
Bangladesh’s anti-corruption commission reportedly told local news outlets on Tuesday that it had opened an investigation into allegations the family had illegally siphoned off £5.2 billion intended for the building of a nuclear power plant and eight other large-scale projects.
All were implemented by the Awami League, the country’s former ruling party which was led by Ms Hasina. The 76-year-old, the longest-serving prime minister of Bangladesh, is now in India, having been ousted after 15 years in power.
During her tenure, opponents were attacked, arrested and secretly imprisoned as the regime carried out extrajudicial killings.
A new government has since taken over and is now pursuing the former ruler and her family.
Ms Siddiq did not respond to requests from the Telegraph for comment on the investigation.
The Telegraph previously reported on how Ms Siddiq’s family retreat in Bangladesh was ransacked after Ms Hasina fled the country in August following violent protests against her administration.
According to analysis by local news outlets, more than 300 people were killed in clashes between students, government supporters and armed police.
A murder investigation has been opened into Ms Hasina over a police killing of a grocer during the deadly protests.