THE Scottish Government's bankruptcy agency has applied for curbs to be placed on a former tycoon who was the biggest Tory donor north of the Border.

Malcolm Scott could face business restrictions for over a decade following an Accountancy in Bankruptcy (AiB) investigation.

Scott was an Edinburgh-based property and grain merchant who ploughed over £1.6 million into the Conservatives.

As part of a lavish lifestyle, he owned a private jet, hired singer Bryan Ferry to play at his 40th birthday party, and entertained Tory grandees at his nine-bedroom mansion in West Lothian.

He also became treasurer of the Scottish party and was heavily tipped for a peerage.

However, his riches turned to dust in 2012 after his businesses failed to repay huge bank loans taken out by his company.

He was sequestrated, the Scots word for bankruptcy, as were his mother and father, who had attempted to help their son by underwriting some of his debts.

Scott then faced a "public examination" in front of a sheriff last year after creditors believed he was concealing information about his assets.

The Scottish Government's bankruptcy agency, AiB, has now applied to Edinburgh Sheriff Court for a Bankruptcy Restrictions Order (BRO) to be placed on Scott.

The agency made the bid on September 24, six days before Scott's sequestration was discharged.

If a trustee handling the bankruptcy believes a debtor has been dishonest or blameworthy during the process, they can request an investigation by the AiB.

Following a probe, the AiB can apply to court for restrictions.

A BRO places severe financial constraints on an individual, such as accessing credit, which can be imposed for between two and 15 years.

Thirty-four BROs have been granted in 2014, according to the AiB website.

A spokeswoman for the AiB declined to state the detailed terms of the application, but said: "I can confirm that the application for the BRO has now been lodged at Edinburgh Sheriff Court." During a public examination held last year, Scott and his wife Rona were both asked to answer a series of questions about their finances under oath.

The court heard the spouses give differing accounts of a break-in at their former Kirknewton mansion, a burglary that was not initially reported to the police.

The sheriff also heard that Scott sold a Range Rover for around £10,000 in cash, but the money then vanished after a mystery individual took the cash away, contained in a box.

The court also heard how Scott's wife was now receiving Working Tax Credits, a benefit for the low-paid.

Since the hearing, it is understood Scott has tried his hand at being a DJ at a radio station in the west of Scotland.

His acting ambitions have also been nurtured through an appearance in a short film on organ harvesting entitled Vulture.

Labour MP Graeme Morrice said: "It is very worrying that a businessman who gave so much money to the Tories was revealed to have had so many financial problems. Malcolm Scott's financial relationship with the Conservatives should be investigated by Scottish leader Ruth Davidson."

Scott could not be reached for comment.