Tulip Siddique faces increasing pressure to resign due to real estate scandal

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British minister Tulip Siddique is under pressure to resign after being implicated in a scandal involving the ousted Bangladesh government.

The minister responsible for fighting corruption has lived in several properties linked to her aunt, former Bangladesh Prime Minister Sheikh Hasina, and her Awami League party. Although they deny the claims, they are accused of siphoning funds from the country’s banking system.

Shadow home secretary Chris Philp said: “It is now time for Tulip Siddique to explain the source of her wealth and which of it was the proceeds of her aunt’s corrupt dealings.”

He called on Sir Keir Starmer to “remove her as anti-corruption minister until these questions are answered.” . . “The Prime Minister’s continued refusal to answer any questions or take any action shows his lack of strength and integrity.”

While Starmer still stands by Siddiq, a senior Labor figure told the FT the party leadership had found her personal finances “difficult to defend” and her position had become untenable. “It is becoming a millstone,” they said.

The FT revealed on Friday that Siddique became the owner of a two-bedroom flat near King’s Cross in 2004 without paying for it. The property was bought for £195,000 three years ago by Abdul Motalif, a developer with links to senior Awami League figures. A similar apartment to this property, which Siddiq still owns, sold for £650,000 in August.

Over the weekend, the Sunday Times first reported that Siddiq lived in another property in Hampstead, transferred to her sister by prominent lawyer Moin Ghani, who now represents the Awami League-led Bangladesh government. People who know Siddiq’s position confirmed her lifestyle.

Ghani previously listed his address as a King’s Cross flat. He did not respond to a request for comment.

She is also renting a £2.1 million house in East Finchley owned by Abdul Karim, a British executive of the Awami League. Land registration documents show she moved to the property outside her constituency shortly after purchasing it in July 2022.

One Siddiq ally said she was paying “market rates” and that the landlord-tenant relationship between her and Karim had been properly reported to council authorities.

Sheikh Hasina resigned as prime minister last year following student protests and violent repression. Bangladesh’s interim government has alleged that the regime’s top officials siphoned funds from the banking system to acquire overseas real estate. They denied the claims.

Siddiq insisted he had done nothing wrong and gave contradictory accounts of how he came into possession of the King’s Cross property. The Mail on Sunday reported that she initially told reporters the flat had been purchased by her parents.

“Tulip’s previous understanding of how property ownership was acquired has changed,” said a person with knowledge of her position.

The person added that Siddiq’s parents had in fact provided “financial support” to an acquaintance and that the developer had subsequently transferred a property he owned to Siddique as an “act of gratitude.”

Siddique did not pay taxes when acquiring real estate. Because it was a gift, it was exempt from stamp duty, a tax on real estate purchases, the official said.

A person familiar with the details said on Sunday that the financial support provided by Siddiq’s parents to Motalif was fully repaid before the property was transferred. They said they were therefore not liable to pay stamp duty and had taken legal advice on this.

A senior British official responsible for UK policy to combat kleptomania told the FT: . . “It’s not enough for us to tell the banks.”