Westminster committee launches inquiry into party funds after Peter Murrell embezzlement

The Scottish Affairs Committee will hold a probe into the Electoral Commission’s “oversight of the funding and governance of the funding and governance political parties in Scotland, and the policies, processes and safeguards associated with the distribution of Short Money to political parties.”

It will also hold an investigation into the dual role of the Lord Advocate.

The decision was made at a meeting in Westminster on Wednesday afternoon. It is understood that it was accepted by the members and no vote was forced on the issue.

Former SNP chief executive Mr Murrell pled guilty to embezzling £400,000 from the Nationalists earlier this year.

Patricia Ferguson, Chair of the Scottish Affairs Committee, said: "The role of the Lord Advocate is unique, combining responsibilities as both the Scottish Government's chief legal adviser and the head of Scotland's prosecution service. The handling of Operation Branchform has once again brought to the fore the challenges this dual role can present.

“It’s right that the appropriateness of the Lord Advocate’s dual role is properly considered, and we’ll explore the of the advantages and disadvantages of the current arrangement, and possible options for reform.

"Alongside this, we'll open an inquiry examining the Electoral Commission's oversight of the funding and governance of political parties in Scotland, and the policies, processes and safeguards associated with the distribution of Short Money.

“Transparency and accountability are fundamental to our democratic institutions, and we look forward to gathering evidence on whether our current systems are working effectively."

“We will undertake this work alone, following confirmation from relevant Holyrood committees that they do not wish to work jointly with us on these important issues, which interact with devolved competence.”

The Scottish Affairs Committee is supposed to scrutinise the work of the UK Government and the Scotland Office.

The Electoral Commission probe will include the SNP’s finances because the party received £2.2million in policy development grants from the body between 2010 and 2022.

The SNP also received £8.2 million in short money - funds given to parties for the number of MPs and votes they have won - during the same period.

The Electoral Commission provides Policy Development Grants of £2 million a year in total to help parties research and develop policies for election manifestos.

Scottish Labour MP and member of the committee Douglas McAllister said: “ I genuinely find it quite staggering that the Scottish Parliament cannot be holding any inquiry into this.

“I find that absolutely staggering. It's astonishing. So, on that basis, if they won't, then we will.

“Because it's in the national interest. We have a duty to do it.”

Liberal Democrat Scottish Affairs spokesperson Susan Murray said: “The recent case involving the embezzlement of funds by Peter Murrell, the SNP's Chief Executive and husband to Nicola Sturgeon, has once again highlighted how strange it is for the head of Scotland's prosecution service and the First Minister's chief legal advisor to be the same person.

"From decisions over whether to proceed with prosecutions, to questions over when John Swinney was informed about key decisions, there can be little doubt that this arrangement has put public trust under considerable strain.

"While I respect the integrity of the recent Lord Advocates, I think it is prudent to scrutinise how this dual role is working and if improvements are due and for that reason I fully support an inquiry by the Scottish Affairs Committee into the Lord Advocate’s role.

“The Scottish Government has consistently refused to demonstrate transparency on the Murrell scandal. Public trust in our politics depends on proper scrutiny and this inquiry can play a part in providing it.”