The resignation of Nicola Sturgeon’s husband as SNP chief executive left the party in the dark over a key part of its finances, according to emails obtained by the Herald.
Files released under freedom of information show Peter Murrell’s sudden exit saw the party scrabbling for information about a taxpayer-funded grant worth almost £150,000.
They also show that, despite Humza Yousaf promising greater transparency, the SNP turned to a new accounting firm during its financial crisis without saying so in public.
Mr Murrell, who had been the SNP’s top official for two decades, quit in March after SNP HQ misled the media about falling party membership.
READ MORE: SNP kept possible loss of £145,000 grant over auditor crisis a secret
His departure added to the sense of instability in the party after Ms Sturgeon’s resignation as leader the previous month.
Emails released to the Herald by the Electoral Commission show Mr Murrell personally dealt with the party’s annual claim for a “policy development grant” from the watchdog.
The money paid to all parties with at least two MPs to help them with policy, typically through hiring staff, and was £145,281 for the SNP in 2022/23.
Three-quarters is paid up front, but the final 25% is only paid if an auditor’s certificate shows the first tranche was spent correctly - otherwise the Commission can claw back all the money paid in advance.
After M Yousaf won the SNP leadership contest in late March, he revealed the SNP’s previous auditors, Johnston Carmichael, had quit after reviewing their client list six months earlier.
It coincided with a police investigation into the SNP's finances.
It was known at the time that SNP HQ and the party’s Westminster group faced a July 7 deadline to file their respective annual accounts for 2022 with the Commission.
However the SNP did not reveal it also faced a far more urgent deadline of May 11 to certify its policy development grant (PDG), which Johnston Carmichael had also signed off.
The emails show that without Mr Murrell, the party had to be walked through the process by Commission staff.
On 4 April, the SNP’s in-house solicitor Scott Martin wrote to the Commission admitting he did not know the status of the grant.
He wrote: “Not been able to work out where we are with Policy Development Grant application, etc. with Peter now away. Can you provide me with an update?
“I’m not sure if you have already sent an email asking for an application to be submitted.”
A Commission official wrote back a week later explaining “the audit certificate and a final cost report for the grant will need to be delivered to us no later than 11 May 2023”.
They also said the Commission would shprtly be issuing letters about the allocation for 2023/24, and the SNP would then need to apply for it.
They added: “If you could let me know who is best person to contact in the party, that would be helpful, as Peter was always my contact for PDGs.”
On May 3, Mr Yousaf announced the Manchester-based AMS Accountants Group had been appointed to audit the HQ and Westminster group accounts.
However he made no mention of the PDG yet to be signed off.
The FoI material shows this was only certified on deadline day, May 11, by a different audit firm, Thomson Cooper Accountants based in Dunfermline.
READ MORE: SNP receive just £4,000 in donations in first three months of 2023
It was forwarded to the Commission that day by acting SNP chief executive Sue Ruddick.
On May 19, Mr Martin was back in touch with the Commission asking about PDG money.
“Do you have the 2023/2024 grant allocation and application form? Also wondering if you have a date for payment of the 25% now that we have the audit certificate in.”
He was advised the outstanding 25% would be signed off by the Commission’s director and CEO within a fortnight, and the £36,320 was approved for release on May 26.
The SNP was asked for comment about its competence and transparency.
The party said that, despite Mr Martin writing to the Commission for help a month before the 2022/23 PDG had been signed off, he was referring to the 2023/24 process, although this was not stated in his email.
The party also said that following Mr Murrell's resignation other senior SNP staff sought to take on work he had done previously.
A spokesperson said: "Thomson Cooper Auditors had capacity to complete the Policy Development audit, which had the earliest deadline, and which we are grateful to them for doing so.
"It is not uncommon for grant audits to be done by a firm other than the main account audit firm."
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