Disgraced ex-Labour MP Jim Devine's former office manager has accused the politician of vindictiveness and making defamatory statements about her to cover up his own actions.

Marion Kinley worked for Devine in his Livingston constituency before he spent four months in prison in 2011 after being convicted of fiddling his expenses.

She is suing Devine at the Court of Session in Edinburgh, claiming the politician sought to cover up his actions with 'absolutely no regard for what effect it would have on me.'

Ms Kinley told the court yesterday that it had been alleged she was being investigated by the police and Special Branch.

She added: "He also stated I had helped myself to bonus money I was not entitled to. I had stolen significant sums of money while office manager and the reason I did this was because I had a serious gambling addiction."

Questioned by judge Lord Bannatyne, Ms Kinley denied she had ever been investigated by the police or had contact with Special Branch. She also denied that she had ever fraudlently claimed phone bills or had a gambling addiction.

Ms Kinley told him: "Mr Devine made the defamatory statements before, during and after his criminal trial which was widely reported by the media." She said she accepted that what he said during the trial had absolute privilege and that the media were entitled to report it.

Ms Kinley, of Bishopbriggs, East Dunbartonshire, said she had no comeback on them for the lies during his evidence at his trial.

Lord Bannatyne asked her: "You are saying the purpose of these defamatory allegations was as a smokescreen to what?" She replied: "Mr Devine's fraudulent claims he was found guilty of."

She said that on the day of his sentencing after he was found guilty of falsely claiming £8,385 using false invoices for cleaning and printing work, the MP's barrister said his client accepted Miss Kinley was not to blame.

Devine, who like Miss Kinley is representing himself, is defending the action.

He maintains that he made no comments such as those alleged, and also maintains that had he said the things claimed, he would have been speaking truthfully.

Before Devine's election, she had worked beside him at the trade union, Unison and considered him a long-time friend, she added. But she said in March 2008 she received a phone call from one of Devine's acquaintances posing as a journalist investigating MPs expenses and her salary. Ms Kinley subsequently found emails linked to the hoax call. She went home sick and put in a grievance letter. She said a return to work certificate was handed in in October that Devine had told a colleague she would not return.

Ms Kinley, who was later suspended, said he was ordered to pay her £35,000 after she won a case at an employment tribunal, but she had received only a goodwill payment of £17,500.

The hearing continues.