SNP's Deputy First Minister denies finances secrecy scandal after treasurer resigns

John Swinney has insisted the SNP's hierarchy was not embroiled in a secrecy scandal over its finances after the party's treasurer resigned, claiming he was not allowed enough information to do the job.

The Deputy First Minister said he did not understand what prompted Douglas Chapman, the Dunfermline and West Fife MP, to quit with a broadside attacking the party's lack of financial transparency.

Mr Swinney also denied claims that police were investigating the whereabouts of £600,000 of party funds raised by activists and campaigners for an independence campaign that it is claimed was spent elsewhere.

But Holyrood's opposition parties said Mr Chapman's "extraordinary" resignation meant that Nicola Sturgeon and Peter Murrell, her husband and the SNP's chief executive, now had to agree to open the party's books.

In March three officials resigned in protest from the SNP's ruling National Executive Committee's (NEC) finance and audit committee. Sources said they quit after Mr Murrell refused their request to see the party's full accounts.

A Scottish independence activist told a court on Friday during a hearing considering an unrelated matter that detectives had visited him in connection with an inquiry into whether the £600,000 had gone missing.

David Henry, the former secretary of the party's Sighthill and Stenhouse branch in Edinburgh, told the city's sheriff court that officers informed him that a “criminal complaint” had been lodged against Mr Murrell.

But a Police Scotland spokesman said: "The complaint is still being assessed to determine if an investigation is required."

Mr Chapman only became treasurer last year but tweeted on Saturday night: "Despite having a resounding mandate from members to introduce more transparency into the party's finances, I have not received the support or financial information to carry out the fiduciary duties of national treasurer. Regretfully I have resigned with immediate effect."

Mr Swinney told BBC Scotland's Sunday Show: "Obviously our National Executive Committee has responsibility for scrutinising the party's finances and I saw that point was confirmed on social media.

"And in addition to that, the accounts of the party are independently audited by external auditors and are submitted to the Electoral Commission for scrutiny so there's a huge amount of scrutiny of party finances that go on. That happens daily within the SNP."

The Deputy First Minister responded "not to my knowledge, no", when challenged if there was a police investigation.

But Jackie Baillie, Scottish Labour's deputy leader, said: "Douglas Chapman’s extraordinary resignation makes it essential that the SNP is open about the growing number of questions about its finances.

“Earlier this year the party was placed under police investigation for a £600,000 black hole in its finances, launched after three members of its finance and audit committee resigned.

“There are clearly issues that need to be looked at within the secretive inner workings and inner circle that runs the SNP. Nicola Sturgeon must agree to open the party’s books to public scrutiny so investigators can get to the bottom of this mess.”

Stephen Kerr, the Scottish Conservative chief whip, said: "It speaks volumes that even the SNP’s national treasurer can’t get the party to open the books.

"There are obvious questions the leadership have yet to answer for members and even their own politicians. But even simple pleas for transparency have further opened up the rift between the nationalists."