Swinney says £660,000 independence fund used on SNP 'objectives'

First Minister John Swinney has said that more than £660,000 raised by the SNP for an independence referendum campaign is being used to further the party's constitutional cause.

Concerns about the fund sparked a police investigation into SNP finances which led to former chief executive Peter Murrell admitting last week that he embezzled more than £400,000 from the party.

The independence cash has not been highlighted as part of the the prosecution's case against Murrell, but questions remain about how it has been used.

Swinney insisted that the money was going towards part of the SNP’s “ongoing activity".

The High Court in Edinburgh heard on Tuesday how Murrell used charge cards, bank transfers and fake invoices to fund purchases including a motorhome, two cars, a robotic lawnmower, jewellery and cosmetics between 2010 and 2022.

He is due to be sentenced on 23 June.

Concerns about SNP finances initially centred on £667,000 of donations for a second independence referendum campaign.

The cash was collected in two SNP online fundraisers after Nicola Sturgeon announced plans for a second referendum in March 2017.

The party insisted that the funds were "ring-fenced" for a referendum campaign, while Sturgeon said "every penny" would be used for that purpose.

However, by 2021, Sturgeon was denying claims that the money had "gone missing".

Asked how the fund has been used, Swinney told Bauer: “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."

The first minister added: "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."

In October 2020, Wings Over Scotland blogger Stuart Campbell complained that the independence fund had "vanished" into the "party machine".

He noted that in the previous year's accounts the SNP had £97,000 in the bank and net assets of £272,000.

That led to speculation that the fund contributed to general party expenses, such as the 2017 general election.

In 2021, then SNP treasurer Colin Beattie said 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".

Questions about the fund prompted complaints to Police Scotland, which formally launched an investigation into SNP finances in July 2021.

That probe ultimately exposed Murrell's embezzlement of £400,000.

However, the £667,000 fund has not been highlighted in court documents.

Earlier, Swinney declined to apologise to whistleblowers who raised concerns about finances while Murrell was embezzling funds.

Former SNP MP Joanna Cherry - who resigned from the SNP's ruling body in June 2021 due to concerns about transparency - has claimed that those who asked questions about finances were "demonised" by the party leadership.

Asked if he would apologise, the first minister 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 insisted that Murrell's crimes - which spanned from 2010 until 2022 - were "well under way" by the time concerns about transparency 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 insisted that the party now had "very strong" financial controls in place.

Swinney said the SNP was open to reimbursing members who had lost out as a result of Murrell's crimes, and that it had already done so in some cases.

Swinney and former first minister Sturgeon have both denied shutting down concerns about SNP finances.

Between March and May 2021, three members of the SNP's finance committee and treasurer Douglas Chapman resigned after being refused access to the financial information. Cherry quit the following month.

At the time Swinney - then deputy first minister to Nicola Sturgeon - told the BBC that there was a "huge amount of scrutiny of party finances".

A leaked video from a March 2021 meeting of the SNP's ruling body showed Sturgeon telling members that the party "had never been in a stronger financial position".

She also warned of the impact on future donations if anyone went public with their concerns.

The SNP's long-standing auditors also quit in September 2023 - six months before Murrell was first arrested - following a review of their clients.

Swinney said last week he was "not conscious" of having shut down questions about party finances.

He has also repeatedly rejected calls for an independent inquiry - arguing that a probe could not provide more answers than a thorough police investigation.

Scottish Labour deputy leader Jackie Baillie said: "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 comments about the independence fund as "damning" and said they "surely destroy any residual trust" in the SNP.