The Scottish National Party’s Westminster group could miss out on more than £1m if it fails to file accounts by the end of May, MP Stephen Flynn has warned.
Flynn, who leads the SNP in the House of Commons, said the party is doing “everything possible” to meet this deadline but finding auditors for the group is proving difficult.
He also revealed that he only became aware of the lack of auditors on 10 February, despite becoming the group’s leader in December.
Separate accounts need to be submitted for the Westminster group by 31 May in order to receive “short money” – public funding for opposition parties to carry out their parliamentary work.
The SNP as a whole is also currently lacking auditors, meaning the Electoral Commission could take action if accounts are not submitted on time.
It comes amid the ongoing police investigation into the SNP’s finances, which saw its former chief executive Peter Murrell and treasurer Colin Beattie arrested earlier this month.
Both men were released without charge pending further inquiry.
Flynn was asked about the Westminster group’s difficulty in finding auditors as he appeared on the Good Morning Scotland radio programme.
“I thought it would be a relatively straightforward process to go and secure new auditors. That’s obviously proven not to be the case.”
This is partly due to the fact that the financial year is nearing its end as well as the overall challenges in the party’s finances, he said, adding: “We need to have our accounts for short money in place by May 31, I believe.
“So every effort that can be made to ensure that happens is being made and of course we’re in contact with the House of Commons authorities meantime in relation to it.”
Flynn said he understands that the SNP will miss out on around £1.2m in short money if accounts are not submitted by this deadline, describing it as a “situation which is in a state of flux”.
He continued: “I wouldn’t want to incur any concern amongst staff that we aren’t going to be able to meet our deadlines.
“We’re doing everything possible to ensure that that is the case.”
The Aberdeen South MP also said he became aware of the group’s lack of auditors on 10 February, when a party official told him so.
It was put to him that his predecessor, Ian Blackford, had said that all “relevant information” was handed over to the new leader during the changeover in December.
Flynn said: “There may well have been discussions between other people but certainly, in relation to myself, I became fully aware of the situation on February 10.”
He said he did not receive the £33,000 salary boost which former Westminster leader Angus Robertson enjoyed.
Flynn said the salary top-up is “not something which I’m overly surprised about” given the additional responsibilities of the role.
Meanwhile, Stuart McDonald has been appointed party treasurer after the resignation of Beattie.
The police investigation centres on how more than £600,000 in donations to the party earmarked for an independence referendum was used.
The SNP’s national executive committee (NEC) has confirmed the appointment of former lawyer McDonald, who represents Cumbernauld, Kilsyth and Kirkintilloch at Westminster.
He said: “While it is a difficult and challenging time, I look forward to getting on with the job of national treasurer to help take forward the important work being led by our new party leader, Humza Yousaf, to improve the SNP’s governance and transparency.
“I’ve no hesitation in stepping forward when asked to do my part in keeping our party firmly on a campaign footing as the case for Scottish independence becomes more compelling that ever.”
A key task for the new treasurer will be appointing auditors after accountants Johnston Carmichael, which worked with the SNP for more than a decade, resigned around September.
McDonald has held several jobs for the party at Westminster, and is currently the party’s justice and immigration spokesman.
Beattie, who was treasurer from 2004 to 2020, and again since 2021, also quit his role on Holyrood’s public audit committee until the police concludes their investigation.
Scottish Labour deputy Leader Jackie Baillie commented: “Stuart McDonald faces an uphill battle dealing with an SNP high command that clearly don’t think the rules apply to them.
“Despite the SNP’s ongoing crisis it has shown no willingness to change.
“It has failed to suspend senior figures embroiled in a police investigation, and its culture of cover-up and secrecy remain in overdrive.”
Scottish Conservative chairman Craig Hoy said: “The scandal over the SNP’s finances is becoming more toxic by the day – and the appointment of a new SNP treasurer will hardly reassure the Scottish public when so many urgent questions remain unanswered.
“Stuart McDonald has promised to improve the SNP’s ‘governance and transparency’, he should start by coming clean over this murky saga.
“He must urgently clarify whether the SNP are in danger of folding due to their financial problems, whether they will be able to find replacement auditors before their annual accounts deadline, and whether the failure to suspend Peter Murrell is due to the party still owing him £60,000.”
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