Former minister urges SNP to hire forensic accountants

A former SNP minister has called for forensic accountants to be called in amid revelations about party finances.

Ex-MSP Alex Neil also said it was unacceptable the SNP took six months to reveal its auditors had resigned.

New leader Humza Yousaf confirmed on Tuesday that long-time accountants Johnston Carmichael had quit last year.

The SNP has told the Electoral Commission it is having difficulty identifying a replacement ahead of its accounts deadline.

It followed the arrest of former chief executive Peter Murrell amid a police probe into SNP finances.

Mr Yousaf said the auditors had resigned "round about October of last year" but he only found out when he became first minister.

It was later clarified that Johnston Carmichael told the party in September that it would not be able to conduct the audit due on 7 July 2023.

Mr Neil, a regular critic of Nicola Sturgeon's administration who resigned as an MSP in 2021, told BBC Radio's Good Morning Scotland that it was "absolutely unacceptable" party members had to wait six months to find out the auditors resigned.

He said members needed to know why they resigned and why the party's ruling National Executive Committee (NEC) "apparently" did not know at the time.

Mr Neil said the party "should financially be in a healthy position".

He pointed out that MPs and MSPs pay £250 a month out of their salaries for membership fees, while the SNP also generated funds from annual conferences, donations and fees from 72,000 members.

"I think it's very unfair to say the least on Humza," Mr Neil said. "Clearly he's taking over a complete bed of nails both within the government in terms of the shambles of some policy areas, as well as in the party and it's very worrying."

He added: "There appears to be financial difficulties and these difficulties appear to be as a result of mismanagement of the party's finances. So we really have to get get to the bottom of this.

"My own view is Humza should bring in special accountants called forensic accountants to look at every aspect of party funding and report back to the party at the earliest opportunity."

The former minister said the audit should provide clarity on the party's finances within three months and should come as part of an independent review of governance.

He urged Mr Yousaf to bring in a new business convener to replace Kirsten Oswald, and for members of the party's NEC who had previously opposed reforms to the system of governance to consider their position.

"What we've got to do is fundamentally restructure the party so that the NEC in its entirety is elected directly by the party, not by vested interest groups who are affiliated to the party," Mr Neil said.

He echoed a call from former SNP leadership hopeful Kate Forbes for the party to unite to push for independence.

Writing for the National newspaper, she said recent revelations about the party had caused "shock, confusion and hurt" among members.

The former finance secretary called for a report into the auditor's resignation and issued a plea to disaffected supporters.

"If you are a party member thinking of resigning, please don't," she wrote.

"If you're scunnered at what's unfolding, please stay. If you've recently left the party, as 50,000 people reportedly have in recent years, think of re-joining."

Mr Yousaf said that appointing new auditors is one of his "major priorities".

It is understood that the SNP has unsuccessfully approached several companies about auditing their accounts.

A spokesperson for the party said: "We have informed the Electoral Commission of the difficulty in identifying replacement auditors and the national treasurer has made the party's finance and audit committee aware."

The SNP's NEC is to meet this weekend to start the recruitment process for Mr Murrell's replacement, with the body also set to oversee a new review of transparency and governance within the party.

In the meantime, the party announced its chief operating officer Sue Ruddick will take on the role of acting chief executive, while Julie Hepburn - who is married to independence minister Jamie Hepburn - will join the HQ team as head of strategic delivery.

Ms Oswald, the SNP's business convener, said: "This is an opportunity for the SNP to push forward with a renewed focus and we look forward to engaging with candidates who have the skills and experience to deliver for our members as we focus on strengthening our internal structures."

Police Scotland launched a formal investigation into the SNP's finances In July 2021 after receiving complaints about how donations for a fresh independence campaign had been used.

Nearly £667,000 is believed to have been raised through referendum-related appeals, but questions were raised after accounts showed the SNP had just under £97,000 in the bank at the end of 2019, and total net assets of about £272,000.

Last year it emerged Mr Murrell gave a loan of more than £100,000 to the SNP to help it out with a "cash flow" issue after the last election.

Mr Murrell resigned as SNP chief executive last month after taking responsibility for misleading statements about a fall in party membership.

The number of members had fallen from the 104,000 it had two years ago to just over 72,000.