Keir Starmer has full confidence in his anti-corruption minister despite her being accused of corruption.
Tulip Siddiq is alleged to have been involved in brokering a 2013 deal with Russia for a nuclear power plant in Bangladesh in which billions of pounds are said to have been embezzled.
The Labour minister’s aunt, Sheikh Hasina, was until recently prime minister of Bangladesh for more than 20 years.
She is facing a wider investigation by an anti-corruption commission in the south Asian country after being deposed.
As economic secretary to the Treasury, Siddiq is responsible for tackling corruption in the UK’s financial markets.
Asked on Monday whether Starmer still has confidence in his minister, his official spokesman said: “The prime minister has confidence and the minister has denied any involvement in the project and any allegations of wrongdoing.”
It is understood that Siddiq has not been personally contacted by the Bangladeshi authorities investigating the corruption allegations.
But according to The Guardian, the minister has been questioned by the Cabinet Office’s propriety and ethics team about the claims.
A Cabinet Office spokesperson said: “As previously stated, the minister has denied any involvement.”
Sources close to Siddiq are reported to have described the allegations against her and her family as “completely politically motivated”.