NEW questions have been raised on how a £20m settlement in a claim over the malicious prosecution of the former administrators of Rangers will end up hitting policing budgets.

Adam Tomkins the convenor of the Holyrood's justice committee has raised questions about the hit to the taxpayer with the Lord Advocate and the justice secretary Humza Yousaf.

Representatives of David Whitehouse and Paul Clark of Duff and Phelps confirmed an agreement in their case against the Lord Advocate and the Chief Constable was reached "extra-judicially". The sum involved has not been disclosed but it is understood to be in the region of £20m.

READ MORE: Inquiry demand over £20m pay-out in malicious prosecution of former Rangers administrators

Mr Whitehouse and Mr Clark were subjected to criminal proceedings with others in the wake of Craig Whyte's purchase of Rangers from Sir David Murray for £1 in May 2011 and its subsequent sale before a judge dismissed the charges.

Mr Whitehouse, of Cheshire, then brought an original damages claim against the Lord Advocate James Wolffe QC and the former chief constable of Police Scotland, Phil Gormley, for £9m. Mr Clark, of Surrey, sued for £5m.

Mr Whitehouse and Mr Clark's actions stemmed from their treatment by the police and prosecution authorities.

The Lord Advocate has previously admitted malicious prosecution and a breach of human rights in the investigation while the administrators sought to clear their names.

Mr Tomkins has asked the Lord Advocate, James Wolffe to divulge the sums involved, or which could be involved, "so that we know the scale of the cost to the taxpayer".

In a letter to Scotland's most senior law officer he says: "It would also be helpful if you can indicate from where the payments will be drawn?

The Herald:

"Will these sums be paid from existing budgets held [by] Crown Office and Procurator Fiscal Service (COPFS)? If so, what are the implications for the COPFS in terms of other workstreams which will no longer have these sums allocated to them?

"Alternately, what agreement has been reached with the Scottish Government about providing COPFS with additional funds?

"I look forward to a prompt response which the Committee can consider as part of its ongoing budget scrutiny."

Mr Tomkins also asked Mr Yousaf in a separate letter to update MSPs over how much is expected to be paid and "from which budget lines".

"It would also be useful to know whether there are implications for the various budget lines within the justice remit or whether additional money has been provided by the Cabinet Secretary for Finance," he asked.

Last week, Scottish Conservatives finance spokesman Murdo Fraser called for an inquiry into what happened and was to raise concerns with Nicola Sturgeon.

Of the settlement, he said: "If it is true, it is an absolute scandal. It is extraordinary at a time when folk are crying out for Covid support that sums like this are being paid out because of a failure in the Crown Office."