Johnston Carmichael, the firm that has audited the SNP’s finances for more than a decade, has resigned. The BBC has learned that the decision was taken after a review of its clients. This comes after Police Scotland launched an investigation into the SNP’s finances in July 2021.
The news follows the arrest of Peter Murrell, Nicola Sturgeon’s husband and former SNP chief executive. He was arrested and released without charge on Wednesday evening after a two-day police search at his Glasgow home and SNP headquarters in Edinburgh. Ms Sturgeon was at the house when police arrived but said she had “no prior knowledge” of Police Scotland’s plans.
The SNP said it was in the process of finding a replacement firm for Johnston Carmichael. First Minister Humza Yousaf said his party had “fully co-operated” with police and would continue to do so, adding that he was “very, very clear that the governance of the party was not as it should be”.
The investigation into the SNP’s finances began after complaints about how donations were used for a new independence referendum campaign. The SNP raised £666,953 through referendum-related appeals between 2017 and 2020, but only had £97,000 in the bank at the end of 2019 and total assets of about £272,000.
Mr Murrell resigned last month after taking responsibility for misleading statements about a fall in party membership. He had also given a loan of more than £100,000 to the SNP to help it out with a “cash flow” issue after the last election.
The SNP is required to prepare financial statements in accordance with the Political Parties, Elections and Referendum Act 2000. It has until 7 July to present their accounts to the Electoral Commission. If there is no report and no reasonable excuse, the commission has the power to appoint its own firm of auditors. The SNP’s accounts for 2021 were published on 16 August 2022, showing total income of £4,510,460, total expenditure of £5,262,032, assets of £1,630,454 and liabilities of £1,055,689.
Scottish Labour’s deputy leader Jackie Baillie said the resignation of Johnstone Carmichael was a deeply worrying development that posed “serious questions” about the SNP’s financial affairs. Scottish Conservative constitution spokesperson Donald Cameron said the SNP should be “fully transparent” over why their auditors decided to quit.
The resignation of Johnston Carmichael is a worrying development that raises serious questions about the SNP’s financial affairs. Police Scotland launched an investigation into the party’s finances in July 2021 after complaints about how donations were used for a new independence referendum campaign.
The news follows the arrest of Peter Murrell, Nicola Sturgeon’s husband and former SNP chief executive. He was arrested and released without charge on Wednesday evening after a two-day police search at his Glasgow home and SNP headquarters in Edinburgh. Ms Sturgeon was at the house when police arrived but said she had “no prior knowledge” of Police Scotland’s plans.
First Minister Humza Yousaf said his party had “fully co-operated” with police and would continue to do so. He added that he was “very, very clear that the governance of the party was not as it should be”. Scottish Labour’s deputy leader Jackie Baillie and Scottish Conservative constitution spokesperson Donald Cameron have both called for transparency from the SNP over why their auditors decided to quit.
The SNP is required to prepare financial statements in accordance with the Political Parties, Elections and Referendum Act 2000. It has until 7 July to present their accounts to the Electoral Commission. If there is no report and no reasonable excuse, the commission has the power to appoint its own firm of auditors. The SNP’s accounts for 2021 were published on 16 August 2022, showing total income of £4,510,460, total expenditure of £5,262,032, assets of £1,630,454 and liabilities of £1,055,689.
The SNP said it was in the process of finding a replacement firm for Johnston Carmichael. It is essential that the party finds an independent auditor to ensure transparency and accountability in its financial affairs. The public needs assurance that all donations are being used appropriately and that there is no wrongdoing within the party. It is also important that any discrepancies or issues are addressed swiftly and openly.