Island leader demoted: island makes excuse (5)

I believe the answer is:

alibi

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'excuse' is the definition.
(excuse given by a suspect in an investigation)

I don't understand the remainder of the clue.

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(Other definitions for alibi that I've seen before include "Making excuse" , "Excuse - plea of being elsewhere" , "Story confirming innocence" , "Sort of explanation" , "Timely excuse" .)

I've seen this clue in The Telegraph.

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