Forensic auditors poised for SNP review as Yousaf denies party bankruptcy

First Minister Humza Yousaf has denied the SNP faces bankruptcy and confirmed forensic auditors could be appointed to scrutinise party finances as part of a review into the inner workings of the party.

First Minister Humza Yousaf : Lesley Martin/PA Wire

Mr Yousaf said the party’s National Executive Committee agreed yesterday to hold a governance and transparency review with its initial findings to be reported in June.

The review comes amid a long running police investigation into the party’s finances, which led to the arrest of former party chief executive Peter Murrell, who was released without charge, and the revelation that auditors employed by the SNP resigned six months ago with senior party figures unaware of the development.

The NEC meeting came amid a fractious mood among some members, with Bill Ramsay, convener of the SNP Trade Union Group, claiming he would quit the ruling body if the party refused to bring in forensic auditors to investigate its accounts, with the call for scrutiny also made by former minister Alex Neil.

Mr Yousaf said yesterday the NEC meeting had been “positive” and with no resignations tendered.

Questioned on speculation the party could be bankrupt, Mr Yousaf said it is “solvent” and bankruptcy had not been discussed at the NEC.

He added: “We’re not close to bankruptcy. This is something I’ve read in some social media circles but, no, the party is solvent.”

Questioned on the review, he said: “We will ensure we have external input, particularly around the issues of financial oversight.

“So, that may well be forensic accountants, it may well be some other means and method – but I think around the additional financial oversight, external input is really important.”

A full report on the review findings, which will be made public, is due before party conference in the autumn.

Mr Yousaf said the party is “desperate” to appoint auditors. Last week it emerged he was unaware before becoming leader that the previous auditors resigned more than six months ago.

He added: “I’m not concerned about what they might find. I’m concerned about the fact that, from my perspective, we could improve our governance and our transparency and I’m concerned about the fact that in six months we haven’t been able to find auditors.”

Mr Yousaf was speaking at a campaign event in the Rutherglen and Hamilton West constituency, where the party could face a by-election.

Sitting MP Margaret Ferrier won the Rutherglen and Hamilton West seat for the SNP in 2019 – but was later found to have damaged the reputation of the Commons and placed people at risk by taking part in a debate and travelling by train while suffering from Covid-19.

If she is barred from the Commons for 10 days or more, that could trigger a recall petition, which would result in a by-election in the constituency – although 10 per cent of voters there would need to support this for it to go ahead.

Parliament is still to determine her punishment, but the Commons Standards Committee has already recommended the MP – who now sits as an independent – should be suspended for 30 days.

Mr Yousaf said he was “hopeful” of winning if a by-election is held.

He said: “I think it will be a challenging by-election for us. I’m not going to pretend otherwise in the context of Margaret’s actions, plus also last week has been difficult.

“But we should also go in confident. We’ve got a good ground operation here. We know where a lot of our support is in the constituency.”

Scottish Labour deputy leader Jackie Baillie said: “Voters won’t forget Margaret Ferrier’s reckless rule-breaking, no matter how many SNP campervans are dispatched to Rutherglen.

“As Humza Yousaf desperately scrambles to hold his crumbling party together, Scottish Labour is offering real change.

“The SNP is chaotic and divided – the people of Rutherglen and Hamilton West deserve better.”

The review of SNP governance comes after serious questions were raised about the party’s inner workings. On Tuesday, 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 senior party figures.

Mr Yousaf was forced to admit he was only told about the resignation of auditors Johnston Carmichael after he won the leadership contest.

As news of Johntson Carmichael’s resignation emerged, Mr Yousaf admitted the situation was “problematic” and said one of his “major priorities” was finding new auditors.

The SNP’s treasurer is now seeking another firm to audit the party’s finances. By law, the party now has until July 7 to present their accounts to the Electoral Commission or face possible sanctions.

News of the departure of Johnston Carmichael came shortly after the SNP’s former chief executive Peter Murrell, the husband of former First Minister Nicola Sturgeon who resigned after misleading party membership figures were released to the press, was arrested amid an ongoing police investigation. He was released without charge with the couple’s home and SNP offices searched by officers.