Senior Nats demand probe into auditors that missed Peter Murrell's fraud

By MICHAEL BLACKLEY, SCOTTISH DAILY MAIL POLITICAL EDITOR Published: 20:31, 9 July 2026 | Updated: 20:31, 9 July 2026 A probe has been demanded into the SNP’s former auditors for failing to spot Peter Murrell’s £400,000 embezzlement. Several former SNP councillors and local party officials have complained to chartered accountancy industry regulator to demand an investigation into Johnston Carmichael, which was responsible for auditing the party’s accounts until its resignation in 2022. The complaint has been coordinated by Jim Orr, an internal audit specialist and former councillor in Edinburgh, and co-signed by a number of former councillors and SNP local branch officeholders. In a letter to chartered accountancy body ICAS, the complainants say they have concerns about ‘a potential breach of professional standards on the part of Johnston Carmichael in relation to their former role as auditors of the Scottish National Party’. It states: ‘While it is public knowledge that numerous tactics were employed to cover up the recent high profile embezzlement of SNP funds, it is concerning that the auditors may not have responded appropriately to multiple counts of suspicious behaviour. ‘Nor did they appear to escalate their findings to senior party figures via the management letter, or any other means. Peter Murrell appearing at Edinburgh High Court where he was jailed for more than five years ‘Instead, 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 true picture was that the normal suite of governance checks and balances had completely broken down.’ The complaint raises concerns about the SNP’s treasurer and national convener being reportedly unaware of the existence of ‘unusual high value fixed asset purchases’ and claimed this indicates that Johnston Carmichael did not make them aware. It goes on: ‘As ICAS are the guardians of the public trust and responsible for upholding standards within the profession in Scotland, we take the view that you are professionally obliged to investigate whether Johnston Carmichael acted properly at all times.’ As well as Mr Orr, six co-signatories on the complaint include independent councillor Andy Doig, a former SNP assistant national secretary, former SNP councillor Fraser McAllister and former SNP Musselburgh branch officials Margaret and Willie Renton.  It is also backed by an unnamed former SNP constituency chairman in Edinburgh North and Leith and London branch member. Mr Orr also said he wants the SNP to launch an internal audit following the Murrell scandal. He said: ‘I want to see that everything is ok now. ‘I always felt the checks and balances were missing. Could they do more, like bringing in an in-house accountant? Is budget management there? What is the role of the chief executive?’ A spokesman for Johnston Carmichael said: ‘As a regulated organisation, we adhere to our obligations on client confidentiality and do not discuss client business.’ An ICAS spokesman said: ‘ICAS doesn’t comment on individual cases or on relationships between firms and their clients. We’re also unable to say whether we’ve received complaints about specific individuals, firms or matters, or to comment on any ongoing regulatory investigations. ‘Our role is to maintain public confidence in the accountancy profession by promoting high professional and ethical standards. We do this through regulation that is robust, proportionate and fair. ‘Where there are concerns that a member, firm, CA student member or affiliate may not have met the standards expected of them, ICAS will look into the matter in line with our rules and investigation regulations.’ It was announced that Johnston Carmichael had quit as the SNP’s auditors in April 2023, shortly after Mr Murrell was arrested and police carried out a search of the house he shared with Nicola Sturgeon.  It later emerged that it had quit months earlier, in September 2022. Murrell embezzled more than £400,000 from the party over a 12-year period between 2010 and 2022, when he splashed out on items including a luxury motorhome, a Jaguar SUV, Montblanc pens and luxury watches. The SNP did not respond to a request for comment on the complaint to ICAS.