POLICE Scotland has been forced to pay out over £300,000 over the malicious prosecution of one of the former administrators of Rangers in connection with the collapsed club fraud case.

Representatives of David Whitehouse and Paul Clark of Duff and Phelps had previously confirmed that an agreement had been reached "extra-judicially" with the Scotland's most senior law officer, the Lord Advocate and Police Scotland.

At the Scottish Parliament earlier this month, the Chief Constable Iain Livingstone admitted both has been given £75,000 each from police along with legal costs.

Now it is understood that those legal costs to Mr Whitehouse were at around £225,000 - bringing the total he received to over £300,000.

Both men have already settled to the tune of £24m with the Lord Advocate - both receiving £10.5m in damages. There were also legal costs of at least £3m.

Scotland's most senior law officer has said there was no criminal misconduct in the failed fraud probe.

READ MORE: Police Scotland pay up to £150,000 compensation to Rangers administrators

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


Mr Whitehouse, of Cheshire, then brought a 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. In August the total claim was said to have gone up to £21m.

The actions surrounded wrongful detention, arrest and prosecution during police investigations in 2014 and 2015.

All seven charges against them, alleging conspiracy to defraud and attempting to pervert the course of justice, were later either withdrawn by the Crown or ruled irrelevant by the High Court.

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 Livingstone told the public audit and post-legislative scrutiny committee that he had never asked for any authority for the extra-judicial settlement as it fell within the limits "delegated authority" in terms of litigation. That is that he can settle up to the limit of £75,000 - but it understood that does not include paying for legal costs.

"I was able to settle with Mr Clark and Mr Whitehouse regarding their specific claims against policing. There was also a commensurate contribution towards legal expenses, as members will imagine, and thereafter the settlement was made and validated by the courtm," he said.

When asked if £75,000 was the total amouth, or whether Police Scotland will expect to pay out more, he said there were further legal cases pending over the collapse of the Rangers fraud case adding: "I will be candid and say that it is a very complex area and a very complex and unfortunate set of circumstances for the individuals involved and undoubtedly there is an effect on levels of public confidence in the justice system.

"My comments related to both Mr Clark and Mr Whitehouse. Through my representative — a Police Service of Scotland lawyer — I was able to engage and to make reparation with regard to both Mr Clark and Mr Whitehouse within the limits of my authority. I did not have to go to the Scottish Police Authority because I am allowed to settle issues if I think it legitimate to do so, as I did in this case, within my limit, which is £75,000 in respect of each individual.

"In the interests of full transparency, as I said, I also authorised — rightly, I think — a payment for legal expenses for both individuals that was commensurate with the reparations made."

The police investigation was launched against a backdrop of the controversial nature of Mr Whyte's nine-months in charge after his 2011 takeover.

He agreed to take on Rangers' financial obligations, which included an £18m bank debt, a potential £72m 'big tax case' bill, a £2.8m "small tax case" liability, £1.7m for stadium repairs, £5m for players and £5m in working capital.

But he controversially helped fund his takeover by setting up a loan in advance from London-based investment firm Ticketus against rights to three to four years of future club season ticket sales in a bid to raise £24 million and pay off bank debt as part of a share purchase agreement with Sir David Murray.

Mr Whyte ended up being the last man standing in the fraud conspiracy case and was acquitted of taking over the club by fraud at the end of a seven-week trial four years ago.