Peter Murrell lawyers claim taxpayer-funded legal aid

He used the funds to buy luxury goods ranging from cars, a motorhome, watches and kitchenware and only stopped once Police Scotland began investigating what happened to £667,000 raised by the SNP for the campaign for a second independence referendum.

Murrell – the estranged husband of former first minister Nicola Sturgeon – was granted legal aid in July last year when he was first charged with embezzling party funds.

The decision to grant legal aid to the 61-year-old resulted in controversy after his hefty personal assets were revealed.

The Scottish Legal Aid Board approved Murrell’s request when his assets were frozen following a restraint order granted through the Proceeds of Crime Act 2002.

Scotland’s legal aid system does not allow the Scottish Legal Aid Board to consider frozen assets when assessing the eligibility of an applicant.

And even when his assets are unfrozen, allowing Murrell to repay the SNP in full, the public cost cannot be clawed back because of criminal legal aid rules.

A spokeswoman for the Scottish Legal Aid Board told The Herald: “The cost in legal assistance paid to counsel in fees to date for Peter Murrell’s trial is £4,831.”

The Scottish Legal Aid Board would not confirm whether there are still outstanding fees to be paid to John Scullion KC for his representation, but Murrell is due back in court next month for confiscation hearings.

The KC told the court that Murrell is able to repay the full sum embezzled from the SNP once his assets are unfrozen.

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

Details of Murrell’s restraint order were lodged with the Register of Scotland in June and it included his share of the marital home he shared with Ms Sturgeon, which is listed to the value of £88,632.

Former SNP chief executive Peter Murrell (left) arriving at Edinburgh High Court. (Image: Jane Barlow/PA Wire)

The listed assets include the £124,550 Niesmann+Bischoff motorhome, seized from outside his elderly mother’s home in Dunfermline, Fife.

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 also co-owned a villa in Portugal’s Algarve region alongside family friends and his sister. The house was sold six months after Murrell was granted legal aid with the 61-year-old reportedly pocketing around £50,000 in the sale.

Stephen Kerr, justice spokesman for the Scottish Conservatives, said the legal aid payout was an “insult” to taxpayers.

He said: “Ordinary Scots who play by the rules will be astonished that they are helping to pay the legal costs of a man who admitted embezzling more than £400,000.

“This is yet another insult to taxpayers and another indictment of the SNP's broken justice system.

“The Scottish Conservatives have repeatedly warned that legal aid has drifted far from its original purpose. Ministers must stop dithering, shut these loopholes and ensure public money is spent supporting victims - not criminals.”

The revelations come as Ms Sturgeon prepares to release a 6,000 word update on her memoir Frankly, where she discusses the toll Operation Branchform has had on her.

Ms Sturgeon's estranged husband was able to get away with his crimes for so long because, as chief executive, he effectively controlled the SNP's bank account and could move money or spend on charge cards with very little oversight.

In the book, Ms Sturgeon insisted she "was completely unaware of many of the items that were purchased" as she was busy at work.

She also admitted that she felt “concern” for Murrell at the height of the police investigation.

Ms Sturgeon was arrested as part of the probe but no further action was taken against her.

Excerpts of the new chapter, published by the Scottish Sun and the Telegraph, state that her estranged husband became "increasingly isolated, withdrawn and uncommunicative" during the Branchform probe, telling readers: "...despite my anger, it was hard not to feel concern for him."