Use of Independence Fund Confirmed by Swinney
First Minister John Swinney has confirmed that over £660,000 raised by the Scottish National Party (SNP) for an independence referendum campaign is being utilized to advance the party's constitutional objectives.
Concerns regarding the fund prompted a police investigation into SNP finances, culminating in former chief executive Peter Murrell admitting last week to embezzling more than £400,000 from the party.
Although the criminal investigation was initiated due to doubts about the independence fund, it has not been referenced in the prosecution's case against Murrell.
Despite ongoing questions about the fund's usage, Swinney maintained that it forms "part of the ongoing activity" of the SNP.
Details of Murrell's Embezzlement Revealed
During proceedings at the High Court in Edinburgh on Tuesday, it was disclosed that Murrell used charge cards, bank transfers, and fabricated invoices to finance purchases including a motorhome, two cars, a robotic lawnmower, jewellery, and cosmetics between 2010 and 2022.
Murrell is scheduled for sentencing on 23 June.
Background on the Independence Fund
Initial concerns about SNP finances focused on £667,000 in donations collected for a second independence referendum campaign.
The funds were raised through two online SNP fundraisers following Nicola Sturgeon's announcement of plans for a second referendum in March 2017.
The former first minister pledged that "every penny" would be allocated to the campaign.
However, by 2021, Sturgeon denied claims that the money had "gone missing."
When asked about the fund's usage, Swinney told LBC:
"That money is part of the resources that are available to the SNP to support its independence objectives and the SNP is the party of independence and that's what we campaign for."
He further stated:
"What's important is that the SNP's resources are used for the purposes for which they are intended, and that's what I want to make sure is the case."
Public and Internal Reactions
In October 2020, Wings Over Scotland blogger Stuart Campbell criticized the independence fund, asserting it had "vanished" into the "party machine."
He pointed out that the SNP's accounts from the previous year showed £97,000 in the bank and net assets of £272,000.
This led to speculation that the fund may have contributed to general party expenses, such as the 2017 general election.
In 2021, then SNP treasurer Colin Beattie acknowledged that while some of the money had not been spent directly on a referendum campaign, "amounts equivalent to the sums raised will be spent for the intended purpose."
Complaints about the fund led to Police Scotland launching a formal investigation into SNP finances in July 2021.
The investigation ultimately uncovered Murrell's embezzlement of £400,000.
However, court documents have not emphasized the £667,000 fund.
SNP's Response and Leadership Comments
Earlier, Swinney declined to apologize to whistleblowers who raised concerns about finances while Murrell was committing fraud.
Former SNP MP Joanna Cherry, who resigned from the SNP's ruling body in June 2021 over transparency concerns, claimed that individuals who questioned finances were "demonised" by party leadership.
When asked if he would apologize, Swinney told BBC Scotland News that the SNP was "taking all the action that is necessary to address the implications of this case."
Pressed on whether the scandal could have been uncovered sooner, Swinney stated that Murrell's crimes, spanning 2010 to 2022, were "well under way" by the time transparency concerns were raised.
"The systems were circumvented long before anybody realised there was any possible issues with the SNP's finances,"
the SNP leader said.
He emphasized that the party now has "very strong" financial controls in place.
Swinney also indicated that the SNP is willing to reimburse members who suffered losses due to Murrell's actions and that some reimbursements have already been made.
Both Swinney and former first minister Sturgeon have denied suppressing concerns about SNP finances.
Between March and May 2021, three members of the SNP's finance committee and treasurer Douglas Chapman resigned after being denied access to financial information. Cherry resigned the following month.
At that time, Swinney, then deputy first minister to Nicola Sturgeon, told the BBC there was a "huge amount of scrutiny of party finances."
A leaked video from a March 2021 SNP ruling body meeting showed Sturgeon stating the party "had never been in a stronger financial position."
She also cautioned about the potential impact on future donations if concerns were made public.
The SNP's long-standing auditors resigned in September 2023, six months before Murrell's arrest, following a client review.
Swinney said last week he was "not conscious" of shutting down questions about party finances.
He has repeatedly rejected calls for an independent inquiry, arguing that a police investigation is sufficient.
Political Reactions
Scottish Labour deputy leader Jackie Baillie stated:
"SNP members and supporters donated their hard-earned money believing it would be used for a future referendum campaign."
She added:
"People will rightly ask whether they were misled. They will rightly ask why the SNP continues to resist scrutiny."
Scottish Conservative leader Russell Findlay accused Swinney and Sturgeon of having "shut down scrutiny."
He described Swinney's remarks about the independence fund as "damning" and said they "surely destroy any residual trust" in the SNP.
