THE final gathering of the Scottish LibDems before the general election was overshadowed yesterday by a new fundraising scandal and splits over potential coalitions.

The main day of the party's conference in Aberdeen was eclipsed by news that the UK LibDems had accepted a second potentially illegal donation.

Part of an undercover TV sting, the money allegedly "bought" a fake donor access to Nick Clegg.

The investigation by Channel 4's Dispatches programme is reported to feature LibDem peer Lord Strasburger caught on camera discussing how to circumvent donation disclosure rules.

Strasburger resigned from the party on Friday night after learning Dispatches would report that "a £10,000 donation was paid by the stepfather of an undercover businessman which would be against the rules on donations".

Under electoral law, any donation above £7,500 has to be declared to the Electoral Commission and using a proxy donor to hide the true donor's identity is not allowed.

The Commission is now investigating the allegations, which are due to be broadcast tomorrow.

The events in London intruded on the Aberdeen conference, where Scottish leader Willie Rennie was questioned on them by the BBC.

He said Strasburger had been right to resign the party whip while an investigation takes place.

"We need to have a proper investigation to find out the truth and step back just now... the proper processes are taking place. We shouldn't make a judgement before that conclusion."

The conference also exposed high-level splits over whether the LibDems should enter another coalition after the election, given the disastrous impact on party ratings of joining with the Tories.

Former leader Lord Steel told the BBC said he did not think there would be "a mood in the party to go into another coalition" and predicted a minority government.

However another former leader, Charles Kennedy, and Scottish Secretary Alistair Carmichael both told a conference fringe a "rainbow coalition" of several parties was possible.

Kennedy said: "A rainbow coalition? Possible, yes, I don't think you can completely rule it out.

"A rainbow coalition which involved Labour, Green, Liberal Democrat, that's potentially there.

"You could see a coalition that involved Liberal Democrat, Conservative but certainly not Ukip."

Carmichael added: "The Labour Party, if they are not in a position to form a majority government, will be in the market for a coalition next time in a way that they simply were not in 2010."

With the LibDems at just 4% in the polls, Steel also hinted Clegg's time as leader was running out with the double-edged comment: "We mustn't start pushing Nick Clegg out the window until we've actually had the election."

Strasburger, 68, a semi-retired businessman from Bath who became a peer in 2011, denied any wrongdoing and claimed he was a victim of "cynical and contrived entrapment-style journalism".

In a statement, he said: "Whatever Channel 4 may say in their Dispatches programme, I do not think I have committed any offence.

"Having said that, I believe that we should all be accountable for what we do, so I have invited the Electoral Commission to carry out an investigation into my actions."

In 2006, Strasburger gave £5000 to North East Fife MP Sir Menzies Campbell for his campaign to become leader of the UK LibDems.

The new allegations follow a newspaper sting two weeks ago, in which a reporter was advised to give more than £7500 via a cousin and met Chief Secretary to the Treasury Danny Alexander.

As a result of that investigation, Ibraham Taguri, the party's former chief fund-raiser, who was filmed discussing the donation, stood down as the LibDem election candidate in Brent Central.

The donor problems overshadowed Rennie's speech to around 250 delegates, in which he insisted his party was "about to reach the top", despite the polls predicting near oblivion.

Boiling down the LibDems' doorstep pitch to just ten words - taxes down, pensions up, more jobs, better healthcare, stronger Scotland - he said: "I can tell you that after the five years we've had, after putting country before party, this would be our finest victory.

"I know how to win, and we can win. Against the odds, despite our critics."

He also attacked the SNP as a "dark, illiberal cloud drenching Scotland" with armed police on the streets, a rampant stop and search policy, the planned abolition of corroboration and an ID database one step away from ID cards.

"Nationalism is not liberalism - and by their actions we can see it. The SNP cannot be trusted with our civil liberties and they know it."

SNP Westminster leader Angus Robertson said the latest donor revelations were "symptomatic of a party which has given up every one of its principles".

He said: "The fact that this has emerged during the party's Scottish conference will be doubly embarrassing to Willie Rennie and the dwindling band of LibDem members in Scotland.

"Nick Clegg needs to get to the bottom of the donation scandals engulfing his party - and provide an immediate and full account of his role in these events."

A LibDem spokesman said: "It is common practice for senior party figures from all parties to meet with potential and current donors.

"Dispatches has raised important questions about one particular donation, which the party is taking seriously.

"The party has also introduced an additional level of scrutiny to donations to the federal party, over and above legal requirements. This will apply with immediate effect."

[BLOB] THE UK LibDems have yet to raise half their £2m campaign fund for the general election, Paddy Ashdown said yesterday.

Speaking at a fundraising appeal at the Scottish LibDem conference, the former leader joked he would sell his dead grandmother for cash.

He said: "The Tories will fight this election on something close to 15 million, and the Labour Party will fight it with something close to 16 million, we think.

"My budget is two and I haven't even got one of those. So at the moment, I have to tell you, I would sell my grandmother for more money - and she's dead."