SCOTTISH Labour officials are being urged to investigate alleged financial irregularities in one of the party’s most marginal seats.
A recent internal audit raised a series of concerns about the records of the Motherwell & Wishaw Constituency Labour Party (CLP) in North Lanarkshire.
At a CLP meeting last week, activists heard around £4500 of unexplained income entered the branch’s account in 2015 and £2100 of unexplained spending left it.
A cheque book has also been reported missing.
The CLP is now asking Labour HQ to investigate further.
Most of the unexplained figures relate to the general election period, when the CLP account doubled as the campaign fund and was effectively emptied to help then Labour MP Frank Roy defend his 16,800-vote majority.
The CLP chair at the time was Mr Roy’s election agent and former parliamentary assistant, Paul Kelly, a councillor for Motherwell West - he stepped down as CLP chair in January.
Despite spending £13,700, twice as much as his SNP opponent Marion Fellows, Mr Roy lost by 11,900 votes.
He is now campaign director of the Scottish arm of the Stronger in Europe campaign.
Mr Kelly will today try to become deputy leader of North Lanarkshire Council on a joint ticket with Jim Logue, who hopes to replace retiring veteran Jim McCabe as leader.
It is understood the financial issues were first identified six months ago, but have so far gone unresolved, leading to ill-feeling inside the CLP.
“Members are fuming about this situation,” said a senior Labour source.
A Labour HQ insider confirmed the party was aware of the issue.
Motherwell & Wishaw was once a safe Labour seat at Westminster and Holyrood, and was represented until 2011 in the Scottish Parliament by former First Minister Jack McConnell.
However in 2011, John Pentland scraped in as the MSP by just 587 votes.
It is understood the financial strains in the branch are now hampering his re-election effort, when he faces a strong challenge from the SNP’s Clare Adamson.
Angela Feeney, who replaced Cllr Kelly as CLP chair last month, declined to discuss details of the problems, but confirmed: “The matter has been passed to Bath Street [Labour's HQ in Glasgow]”.
Cllr Kelly did not respond to calls or emails yesterday.
Asked about the controversy, a Scottish Labour spokesman said: “All Constituency Labour Parties are required to submit their audited accounts to the Labour Party each year."
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