Peter Murrell legal aid loophole must close, SNP told

His assets were frozen after he was charged, meaning he was eligible for the lifeline legal fund despite being on a six-figure salary while employed by the party.

Murrell’s restraint order revealed he had assets of more than £700,000, including £613,496.04 across two pension funds.

He also shares a marital home with his estranged wife Nicola Sturgeon and is expected to repay the embezzled sum once the restrictions on his assets are lifted.

But we revealed he will not lose his legal aid entitlement and will not be forced to repay the sum because of a loophole in Scottish legislation.

The Scottish Legal Aid Board is unable to claw back criminal legal aid, but millions can be recouped from criminals south of the border, in England and Wales.

Legal aid can only be recouped for civil legal aid in Scotland, where the applicant is able to pay.

Jackie Baillie, the deputy leader of Scottish Labour, said the Scottish Government must recover the legal aid cash.

“There are serious questions to be asked about Peter Murrell’s case and this SNP fraud scandal,” she said.

“If Peter Murrell is now in a position to pay back legal aid, he should do so.

“Enough public money has already been wasted by the SNP. Any penny that can be recovered, should be.”

Scottish Tory MP Andrew Bowie said: “It is outrageous that someone who has major assets and a huge salary like Peter Murrell has been entitled to legal aid at all.

“He is a crook who stole from SNP donors and potentially taxpayers’ too yet under the SNP’s broken legal aid system he might not have to pay any of this back.

“This high-profile and scandalous case should be the catalyst for urgent measures to be put in place to give the Scottish Legal Aid Board the powers they need to demand repayment from Peter Murrell.

“It is not right that he might end up keeping this money while many vulnerable Scots are unable to access legal aid support at all.”

(Image: Jane Barlow/PA Wire)

Scotland’s legal aid system has been under strain for years, with lawyers turning away from accepting cases because of inadequate fees.

Many parts of the country have ‘legal aid deserts’ where vulnerable people cannot access publicly-funded representation because of a severe shortage of solicitors, which is driven by low fees and administrative burdens.

The Scottish Legal Aid Board told The Herald it would welcome any reform of the system that could see legal aid costs recovered by criminals who can afford to pay.

Thomas Leonard Ross KC, a senior criminal lawyer, said it made sense that Murrell was granted legal aid while his assets were frozen under a Proceeds of Crime order.

But he said: “What, I must confess, doesn’t really make an awful lot of sense to me is if we assume that a confiscation order is made for something like £400,000, I can understand why people are saying ‘well, at that stage, why does he not pay back the cost of his lawyers?’

“But there doesn’t seem to be any provision in the legal aid regulations for that to be done. I don’t suppose we can blame him for it, we certainly can’t blame his lawyers.”

Asked by The Herald whether the Scottish Government and the Scottish Legal Aid Board should look to reform legislation to claw back funds from Murrell – and other convicted criminals who are able to pay – the KC said: “I think it’s something they’re going to have to look at.

“The public are going to be outraged at the notion that he’s got £700,000 of assets and they will ask ‘why should we pay his legal fees?’”

Murrell’s restraint order has been lodged with the Register of Scotland and details of his assets, including the marital home he shares with his estranged wife Nicola Sturgeon, are included.

He is currently interdicted from dealing with his assets, and the £124,550 Niesmann+Bischoff motorhome, seized from his elderly mother’s home in Dunfermline, Fife, is included.

A second listed asset states there is the “sum of £613,496.04" as the “gross funds” in two Legal and General pension accounts.

Murrell’s “heritable property” is also listed to the value of £88,632 in the joint name of Peter Murrell and Nicola Sturgeon.

During the narrative hearing last week, Murrell’s senior solicitor, John Scullion KC, told the court that Murrell’s assets were frozen following a restraint order granted through the Proceeds of Crime Act 2002.

“The value of the property restrained in terms of the petition suggests that there will be repayment of the sum embezzled in this case,” the KC said.

The KC will set out further details in mitigation during the June 23 sentencing, with a social work report on Murrell being prepared before then.

Murrell’s legal representatives are yet to submit any accounts to the Scottish Legal Aid Board, and have four months from the conclusion of court proceedings to do so.

However, Murrell is also expected to face legal action from the SNP, with First Minister John Swinney stating the party will try to recoup the funds he stole.

A Scottish Government spokesman said: “We are committed to reforming the legal aid system through legislation to be introduced this parliamentary year to ensure it works more effectively.

“As part of this work, we are reviewing financial arrangements including contributions and clawback, to ensure they are fair, transparent, and deliver value for money for the public purse.”