UK Labour minister Tulip Siddiq has been named in an investigation into an allegation of Tk 590 billion (£3.9 million) embezzlement from infrastructure projects in Bangladesh by her family.

Tulip Siddiq, 42, who as the Treasury’s economic secretary is responsible for tackling corruption in UK financial markets, is alleged to have brokered a deal with Russia in 2013 that overinflated the price of a new nuclear power plant in Bangladesh, said a BBC report.

Several other news outlets in the United Kingdom also published reports on Thursday on the corruption charges brought against Tulip Siddiq by the Anti-Corruption Commission in Bangladesh.

The allegation is part of a wider investigation by the commission into Tulip’s aunt Sheikh Hasina, who was deposed as prime  minister through a student-people uprising on August 5.

A source close to Siddiq said these were ‘trumped up charges’, the BBC report said..

The source also said that the allegations were ‘completely politically motivated’ and designed to damage her aunt.

The allegation caused a political storm in the United Kingdom while the UK government defended her and the opposition urged her to come clean.

Conservative shadow home office minister Matt Vickers said, ‘The fact Labour’s anti-corruption minister is reportedly embroiled in a corruption case is the latest stain on Keir Starmer’s judgement, said the BBC report.

‘It is high time she came clean. The British public deserve a government that is focused on their priorities, not distracted by yet another scandal,’ the report Quoted Matt Vickers to have said.

Downing Street said prime minister Sir Keir Starmer had confidence in Tulip, and she would continue her responsibility as the minister overseeing anti-corruption efforts. 

Tulip has ‘denied any involvement in the claims’ accusing her of involvement in embezzlement, according to the prime minister’s official spokesperson.

She has, however, recused herself –– or stepped back –– from any political decisions involving Bangladesh, the spokesperson added.

The investigation is based on a series of allegations made by Bobby Hajjaj, a political opponent of Hasina.

The BBC understands that Siddiq has not had any contact with the ACC as part of the investigation, the report said.

The commission is also investigating several members of Hasina family, including Tulip’s mother Sheikh Rehana Siddiq, and senior officials from her government.

Hasina, who ruled Bangladesh for more than 20 years, was seen as an autocrat whose government ruthlessly clamped down on dissent.

Since fleeing the country Hasina has been accused of multiple crimes by the new Bangladeshi government. 

Hasina is wanted by the International Criminal Tribunal for on charges of genocide and crimes against humanity during the mass uprising, in which several hundred people were killed.

Arrest warrants have also been issued for 45 others, including former government ministers who also fled the country.

Syed Faruk, who runs the UK branch of Awami League, said that the claims were ‘fabricated’.

Tulip was elected lawmaker for Hampstead and Highgate in 2015, the north London constituency neighbouring UP prime minister Sir Keir Starmer’s seat of Holborn and St Pancras.

Corruption allegations and convictions against top leaders of ousted governments are not new in Bangladesh.

Hasina’s main predecessor as prime minister, Khaleda Zia faced similar charges, which she also dismissed as politically motivated. As did ex-president Hussain Muhammad Ershad, who seized power as head of the army during a bloodless coup in 1982.

Court documents seen by the BBC show Bobby Hajjaj has accused Tulip of mediating and coordinating meetings for the Bangladeshi officials with the Russian government to build the £10 billion Rooppur Power Plant Project. 

It is claimed that the deal inflated the price of the plant by £1 billion, according to the documents –– 30 per cent of which was allegedly distributed to Tulip and other family members via a complex network of banks and overseas companies. 

In total, Bobby alleges £3.9 billion was siphoned out of the project by Hasina family and minister.

Footage from 2013 appears to show Siddiq attended the deal’s signing by Hasina and Russian president Vladimir Putin at the Kremlin, recorded by the Associated Press.