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Former MP Natalie McGarry used loan to pay back organisation she is accused of embezzling, court hears

Former MP Natalie McGarry used loan to pay back organisation she is accused of embezzling, court hears

Ex-SNP politician Natalie McGarry used a loan to pay back cash to the Scottish independence organisation she is accused of embezzling, a court has heard.

McGarry, 40, who represented Glasgow East for the SNP, allegedly stole more than £25,000 from two Scottish independence organisations between April 2013 and August 2015.

One charge claims the former MP embezzled £21,000 while treasurer for Women for Independence (WFI) between April 26, 2013 and November 30, 2015.

Witness and former health secretary Jeane Freeman, 68, said £6,436 of WFI cash that landed in McGarry’s bank account was paid back by the former politician.

Prosecutor Alistair Mitchell said: "The money that was paid back to WFI, it's agreed the source of these funds were a loan payment to Natalie McGarry, was WFI aware of that?"

Freeman replied: "No."

The second charge states McGarry embezzled £4,661 between April 9, 2014 and August 10, 2015.

It is alleged that while McGarry was treasurer, secretary and convenor of Glasgow Regional Association of the SNP, she used cheques drawn from their bank account to pay expenses not incurred by the group.

McGarry is claimed to have retained reimbursements intended to settle expenses which she was not entitled to.

The charge goes on to say McGarry used cheques and money from donations to the organisation to deposit money to her own accounts.

McGarry, of Clarkston, denies the two charges.

Former health secretary Jeane Freeman has been giving evidence at the trial

Freeman told the court that she contacted police as she had a “responsibility” due to the job roles that she and an accountant, Elizabeth Young, had.

In a later report to WFI's national committee it was stated that there was a £31,824.10 discrepancy in the known income and expenditure figures. 

Mitchell asked: "You said you were aware of the crowdfunders, it is agreed that the money from those three crowdfunders were transferred to Natalie McGarry's bank account - were you aware of that?"

Freeman replied: "No."

Mitchell asked where the witness expected the cash to go and she replied: "The WFI bank account."

The prosecutor later said: "From March 2014, the PayPal account was connected to Natalie McGarry's bank account, were you aware of that?"

Freeman again replied: "No."

Allan Macleod, defending, put it to Freeman that McGarry was "not an accountant or (had) any accountancy qualifications."

She said: "No, and I feel people who have the title of treasurer of a small organisation would fall into that category.

"It's not difficult to know how to record income and expenditure and get information to support that expenditure."

Macleod also suggested that McGarry was doing "a lot of work."

Freeman replied: "Yes, along with others."

Freeman said McGarry was tasked with sending financial figures to the electoral commission following the independence referendum.

Macleod said there was "angst" among WFI members whether the financial report would be submitted on time which Freeman agreed with.

In her police statement read to the court, Freeman told officers: "I was getting annoyed that if a national committee were not submitting this information and missed the deadline it would be embarrassing.

"Natalie said 'It was all over the place' and it's at this time Elizabeth Young, an accountant, volunteered to do the accounts and it was ideal."

It was put to Freeman by Macleod that McGarry was a "bit disorganised."

She replied: "It would be fair to say that from time to time Natalie appeared to be quite disorganised and it was fair to say she was unwilling to accept any help."

Macleod also suggested that McGarry was a person that "got things done" but paperwork was not her "strong suite."

Freeman said: "That would appear to be the case."

Freeman later told the court she contacted a lawyer after Young's spreadsheet appeared to show a £31,824.10 discrepancy.

McLeod said: "You knew yourself before speaking to the lawyer, when you have a gap between money coming in and going out and what's left, there is always going to be a potential for criminal behaviour?"

Freeman replied: "It was."

McLeod said: "You don't need a lawyer to tell you 'it is going to be criminal behaviour, take it to the police' you knew that yourself."

Freeman replied: "In my view it was criminal behaviour but the decision to pass the matters to the police wasn't my decision alone and it was important, we felt, to have that step removed from the organisation."

The trial, before Sheriff Tom Hughes, continues.
 

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Read the most recent article written by Connor Gordon - Former SNP MP Natalie McGarry jailed for two years.

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