THE Scottish Tories' financial prospects have taken another hit after a top donor's business empire was revealed to owe £8 million.

Five of Malcolm Scott's companies are now in administration, while the tycoon's nine-bedroom mansion in Kirknewton and other lavish properties have been put up for scale.

Scott, who made his fortune in the property and grain sectors, has made more than £1.6 million in personal and corporate donations to the Conservatives.

He is one of the party's biggest Scottish benefactors and an ally of Foreign Secretary William Hague. As well as making cash donations, he has also hosted banquets at his home and was on the advisory council of Atlantic Bridge, the doomed charity founded by former Defence Secretary Liam Fox.

However, Scott's generosity has dried up over the last twelve months due to acute business difficulties.

Earlier this year, it was revealed that administrators KPMG had been appointed to take control of three firms that are part of Scott's Dunalastair group.

The "statement of affairs", which is now available at Companies House, sets out the scale of the problems. One firm, BS 1001 Ltd, owes £315,237, including £151,464 to accountants Cheine and Tait.

A second company, BS1003 Ltd, is estimated to have liabilities of nearly £3.7 million, although the firm also has assets of £1.3 million.

Most of the cash is owed to the secured creditor Lloyds Banking Group (LBG).

Prestonpans (Trading Ltd), also located in Edinburgh, is shown to owe about £4.3 million.

This will be partly offset by assets of about £3.6m, which consists of two properties. Again, LBG is due the most.

Last week, another two of Scott's firms were put into administration: Philip Wilson (Grain) Ltd and Swarland (Grain Dryers) Ltd. The process is being handled by Ernst and Young.

Joint Administrator Derek Hyslop said: "We are currently undertaking an assessment of the companies' financial positions, but it appears both are casualties of recent market conditions and have been affected by uncertainty over property values."

In a development separate from the administration moves, Scott's homes are also up for sale.

In 2005, the businessman bought Hillfield in Kirknewton for £1.85 million. The stunning Georgian mansion, set in 21 acres, has five reception rooms, nine bedrooms, an orangery, an indoor swimming pool, a loch, and paddocks. It was here that Scott hosted a dinner at which Fox was the keynote speaker. The property is now being marketed for £2.95 million.

Breakwater House in Elie, another Scott property, is for sale. The tycoon paid £706,000 for the Fife retreat, known locally as the Donkeyman's house, which has three reception rooms, five bedrooms, three bathrooms and a study. He looking for in excess of £950,000.

Scott's hotel in the Courchevel ski resort is also being sold.

A spokesman for the Scottish Tories declined to comment on their contributor's financial difficulties.

But a senior party source said Scott's difficulties were another financial headache for Scottish leader Ruth Davidson, as she tries to raise funds for her ailing organisation.

Lord Laidaw stopped bankrolling the Scottish party after being exposed as a sex addict, while long-term fundraiser Sir Jack Harvie retired from his role earlier this year. The party has also moved to smaller premises due to cash issues.

An SNP spokesperson said: "With each piece of bad news, the Scottish Tories find themselves in an increasingly precarious position under Ruth Davidson's leadership.

"First their top fundraiser quits, then we find out that their pro-Union campaign was being bankrolled from the south of England, and now it looks like one of their major donors won't be filling their coffers any time soon."

Scott could not be contacted.