A formal complaint has been lodged with the chartered accountancy industry regulator, ICAS, demanding an investigation into the Scottish National Party's former auditors, Johnston Carmichael. The complaint, coordinated by Jim Orr, an internal audit specialist and former SNP councillor, alleges that the firm failed to identify Peter Murrell's £400,000 embezzlement of party funds.
Orr, along with several other former SNP councillors and local party officials, asserts in a letter to ICAS that Johnston Carmichael may have breached professional standards during their tenure as the SNP's auditors until 2022. The complainants are concerned that the auditors did not appropriately respond to "multiple counts of suspicious behaviour" and failed to escalate their findings to senior party figures.
"The accounts of the SNP were signed off year after year as ‘true and fair,’ thereby giving a misleading impression that all was well to the users of the accounts, not least the ordinary members of the SNP who continued to contribute significantly to the funding of the party," the letter states. "The true picture was that the normal suite of governance checks and balances had completely broken down."
Concerns have also been raised about the treasurer and national convener reportedly being unaware of "unusual high value fixed asset purchases," which the complainants suggest indicates Johnston Carmichael did not inform them. The complaint argues that ICAS, as the guardian of public trust and professional standards in Scotland, is obliged to investigate whether Johnston Carmichael acted properly.
Peter Murrell was jailed for over five years for embezzling more than £400,000 from the SNP between 2010 and 2022. He used the funds for personal expenses, including a luxury motorhome, a Jaguar SUV, and high-end watches.
Johnston Carmichael resigned as the SNP's auditors in April 2023, shortly after Murrell's arrest and a police search of the home he shared with former First Minister Nicola Sturgeon. However, it later emerged that the firm had resigned in September 2022.
Johnston Carmichael stated that as a regulated organization, they adhere to client confidentiality and do not discuss client business. An ICAS spokesperson confirmed that the organization does not comment on individual cases or ongoing investigations but noted their role in promoting high professional and ethical standards within the accountancy profession.
Jim Orr also called for an internal audit within the SNP to ensure current financial controls are robust. He expressed a desire to confirm that "everything is ok now" and questioned whether the party could improve its financial oversight, such as by employing an in-house accountant and clarifying the role of the chief executive.
The SNP has not yet responded to a request for comment regarding the complaint filed with ICAS.