SNP auditors quit after Peter Murrell police investigation

The firm that audits the SNP's finances has resigned, the BBC has learned.

Accountants Johnston Carmichael, which has worked with the party for more than a decade, said the decision was taken after a review of its client portfolio.

By law, the party has until 7 July to present their accounts to the Electoral Commission or face possible sanctions.

Police investigating the SNP's finances this week searched the home of former SNP chief executive Peter Murrell - Nicola Sturgeon's husband.

He was arrested on Wednesday and later released without charge.

A spokesperson for the SNP said the party was in the process of finding a replacement firm.

The SNP is required to prepare financial statements in accordance with the Political Parties, Elections and Referendum Act 2000.

However Electoral Commission rules state any party with income or expenditure of more than £250,000 is required by law to also independently audit their accounts and include this report in their submission.

Accounts are from the calendar year, not the financial year and the deadline for 2022 accounts is 7 July 2023.

If there is no auditors report and no reasonable excuse, the commission have the power to appoint their own firm of auditors to look at the accounts.

The party's total income was £4,510,460, total expenditure was £5,262,032, assets were £1,630,454 and liabilities were £1,055,689.

Mr Murrell was arrested on Wednesday, and later released without charge, while police carried out a search at his Glasgow home.

He was questioned while the search took place.

Ms Sturgeon was at the house when police arrived but said she had "no prior knowledge" of the force's plans.

A search of the Scottish National Party's headquarters in Edinburgh was also carried out.

First Minister Humza Yousaf, who succeeded Ms Sturgeon last week, said his party had "fully co-operated" with police and would continue to do so.

He said that he was "very, very clear that the governance of the party was not as it should be".

Scottish Labour's deputy leader Jackie Baillie said the resignation of Johnstone Carmichael was a deeply worrying development that poses "serious questions" about the SNP's financial affairs.

She said: "Yesterday, Humza Yousaf attempted to distance himself from the legacy of Peter Murrell - today we need to know what the current first minister plans to do to get the SNP's house in order.

"Sunlight is the best disinfectant - we need transparency and openness from the SNP now."

Meanwhile, Scottish Conservative constitution spokesperson Donald Cameron said the SNP should be "fully transparent" over why their auditors decided to quit.

He said: "The public are sick of the SNP shrouding matters relating to their finances behind a wall of secrecy, and senior figures - including Humza Yousaf and Nicola Sturgeon - must be upfront about this situation."