Rangers administration: Police now investigating amid £24m paperchase

STRATHCLYDE Police has confirmed it is investigating the “ongoing situation” at Rangers Football Club – as former chairman Alastair Johnston demanded a Crown Office probe into Craig Whyte’s takeover last year.

As administrators running the Ibrox institution admitted they did not know there whereabouts of millions of pounds borrowed against predicted season ticket sales, it emerged the force had been passed a secret dossier.

A statement posted on Strathclyde Police’s Facebook page stated: “We can confirm that we have been passed information regarding the ongoing situation at Rangers Football Club. This is currently being examined and it would be inappropriate to comment further.”

Mr Johnston said: “I have today written to the Crown Office asking for an investigation into the background surrounding the acquisition of Rangers Football Club by Craig Whyte, and in particular whether there is evidence of fraud.

“I’m not making allegations against anyone, but I think it would serve the public interest that certain issues should be investigated into the takeover and ongoing situation at Rangers.”

Meanwhile, insolvency firm Duff and Phelps, the administrators appointed on Tuesday, confirmed yesterday that Mr Whyte had received £24.4m from Ticketus, a London-based company, by mortgaging off tranches of future season tickets.

However, instead of the funds going directly into the bank account of Rangers, the money was paid into a company account controlled by Mr Whyte.

David Whitehouse, one of two administrators, told an Ibrox press conference they were working to find the “visibility” of the money deposited by Ticketus.

He said: “We are looking into that [the deal with Ticketus] and trying to understand. The funds from Ticketus didn’t come through the club’s accounts. They went through those of a parent company.”

Mr Whitehouse said he was seeking the relevant documents connected to the loan from the club’s former lawyers.

Mr Whyte has always maintained that the Ticketus money was paid to Rangers and was used as working capital. In an interview with The Scotsman a fortnight ago, he said: “Believe me, every single penny of the Ticketus money has stayed in the club.”

Last night, a spokesman said Mr Whyte could not be reached for further comment.

The administrators, from the New York-based firm Duff & Phelps, also explained that Rangers FC as a business was “loss-making” and that the £9m withheld from the Her Majesty’s Revenue and Customs in VAT and PAYE payments since May last year, when Mr Whyte took over, had been used as a “funding tool”.

Mr Whitehouse said: “The reason it hasn’t been paid is that it wasn’t sent. It wasn’t kept in a separate pot, but as to why and whose decision it was, this is not something we are yet able to confirm.”

According to the administrators, Rangers FC is likely to escape liquidation, but faces a round of job cuts and could be sold to new owners. There have been “several expressions of interest from parties not connected to the club” since they took over the running of the Scottish league champions.

Paul Clark, the other administrator, said that interest in the club will be given due consideration. He said: “As administrators we have to look at all other expressions of interest in the club and to date, we have received several expressions of interest from parties not connected to the club.” Mr Clark said he had spoken with Rangers manager Ally McCoist and the players but was unable to confirm if any club staff, including the players, would be made redundant.

He said: “I told them a review of staffing, including playing staff, would be necessary as part of the process and that it would be next week at least prior to any decisions being taken in this area.”

However, according to sources, redundancies are expected to be issued to both staff and players next week.

The club is awaiting the verdict of a tax tribunal which could cost up to £75m, but Mr Clark said that he does not believe there is any danger of liquidation.

He said: “There has been widespread comment and speculation about the finances of Rangers. At this moment, it is not possible to give a detailed financial report but we can assure everyone that as part of the process there will be a full account of the club’s financial affairs and this will be published in due course.

“Looking to the future, we are hopeful that a company voluntary arrangement can be achieved and these are measures that are put in place and deal with all of the club’s liabilities.

“As a result of our preliminary assessment, we are wholly confident that Rangers will continue as a football club. We do not think that liquidation and the closure of the club is a likely outcome at all.”

When asked who has security on the club’s assets, which include Ibrox stadium, the training ground at Murray Park, the Albion Road car park and the current squad of players, the administrators said that it was a company controlled by Mr Whyte.