SNP should bring in forensic accountants, says former minister Alex Neil

The SNP should bring in forensic accountants to “get to the bottom” of its finances, a former minister has said, as the party started its hunt for a new chief executive.

Alex Neil, who served in the governments of both Nicola Sturgeon and Alex Salmond, said the current situation was “absolutely unacceptable”.

It comes after it emerged the firm which audited the SNP’s accounts resigned more than six months ago but this information was not disclosed to the public or even to senior party figures. Accountancy firm Johnston Carmichael had worked with the SNP for more than a decade but quit in September.

Humza Yousaf, the new First Minister, admitted the situation was “problematic” and said one of his “major priorities” was finding new auditors. He said he only became aware of what had happened when he won the leadership contest.

Alex Neil

Last week, the SNP’s former chief executive Peter Murrell, who is also Nicola Sturgeon’s husband, was arrested amid an ongoing police investigation into the party’s funding and finances. He was later released without charge pending further investigation. Mr Murrell resigned during the leadership race following a row over membership figures.

The SNP’s national executive committee – its ruling body – will “kickstart” the process of appointing a new chief executive this weekend. The party said there would be an open application process, with adverts going out shortly.

Sue Ruddick, the chief operating officer, will take on the role of acting chief executive, while Julie Hepburn will join SNP headquarters as its head of strategic delivery. The latter is the wife of Jamie Hepburn, who is Mr Yousaf’s independence minister.

SNP business convener Kirsten Oswald 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.”

Speaking to the BBC’s Good Morning Scotland programme, Mr Neil said the situation with the auditors was “absolutely unacceptable, quite frankly”. He added: “We haven't been told why the auditors resigned. We need to know why. What reason was given for them resigning?”

He said it was "very unfair, to say the least" that Mr Yousaf he did not know about the situation, adding: "Clearly, he has taken over a complete bed of nails, both in the Government in terms of the shambles of some policy areas, as well as in the party.

"And it's very worrying that a party that has got 72,000 members, with all the sources of income we've got, appears to have financial difficulties, and these difficulties appear to be a result of the mismanagement of the party's finances.

"So we really have to get to the bottom of this. My own view is that Humza should bring in special accountants called forensic accounts to look at every aspect of party funding and report back to the party at the earliest opportunity. Let's get to the bottom of this. Let's get it sorted and move on."

Mr Neil said the party “should not be short of money” due to the size of its membership and the fact that every MP and MSP is required to contribute £250 a month to headquarters out of their own salary.

He said the SNP needed to be fundamentally restructured. However, Mr Neil also said it was "almost impossible" to see how Scotland could achieve independence without the party, and urged members to stay.

He said: “It’s not doing the party any favours, day after day having drip after drip of new information, it is all bad news. And I think what Humza needs to do is bring in a new business convener of the party, bring in a new chief executive, and in the meantime get forensic accountants in to tell us the real state of the party’s finances.”

The SNP confirmed Johnston Carmichael had informed the party in September last year it would not be able to carry out the 2023 audit, with the decision coming following a review of its client portfolio. The party contacted alternative firms late last year, but found they were “experiencing capacity issues” and were unable to take on new clients.

It has now informed the Electoral Commission of its difficulty in identifying replacement auditors. The SNP has until the first week of July to present its accounts or face possible sanctions, including an independent audit.

Scottish Conservative chairman Craig Hoy said: “At first, Humza Yousaf was the continuity candidate. Now that his party is falling apart, he says he wants a new broom strategy. Yet his actions demonstrate the exact opposite.

“He appointed Jamie Hepburn as independence minister, pushing the same old agenda that most Scots reject. If that wasn’t enough, while he’s casting around for a new CEO and auditors, Hepburn’s wife Julie has been brought in as ‘head of strategic delivery’ – which presumably means delivering the same old separatist rhetoric, rather than delivering on Scottish voters’ priorities.

“This supposed new broom is staffing the SNP HQ with the same clique that have presided over the old regime. People want transparency and that can only come with a proper clear out.”

Scottish Labour deputy leader Jackie Baillie said: “At a time when it is clear that the SNP needs a clean break from the past, it seems that Humza Yousaf is committed to getting Peter Murrell’s backing band back together.

“It seems that the leadership continuity candidate Humza Yousaf has simply appointed a continuity chief executive. It is little surprise that the SNP is now descending into internal bickering. Scotland needs a clean break from the SNP.”