SNP face group legal action over ‘ring-fenced’ independence fund

The SNP could be liable to refund money to people who donated to the “ring-fenced” independence fighting fund, a leading lawyer has said.

Legal advice provided by Roddy Dunlop KC to blogger Stuart Campbell concluded that a “civil claim for fraudulent breach of trust is close to irresistible”.

Dunlop, who is the dean of the Faculty of Advocates, added that trust was “deliberately and dishonestly breached” and therefore donors would be “entitled to repayment”.

In addition, he said donors could make a claim for interest and compensation for “distress and inconvenience”.

Cambell, who runs Wings Over Scotland, is seeking to launch a group legal action against the SNP over the matter.

The party launched two fundraisers – one in 2017 and one in 2019 – which it said would be used to create a “war chest” to fight another independence referendum.

But First Minister John Swinney admitted last month that the cash had been used for general party activities.

He said: “I’m saying it’s part of the ongoing activities of the Scottish National Party and we’re the party that campaigns for independence. We just fought an election campaign where we had a very strong anchoring of our campaign for independence. If that’s not the use of the resources, then I’m not sure what the resources are for.”

Dunlop argued that the donations gathered were for a “singular and specific” purpose – an independence campaign – and therefore the SNP was “not at liberty to treat the moneys as its own or to apply them its general party activities”.

He added that the diversion of the funds was done without the knowledge of donors, and when the party had been asked about the money, donors were told the ring-fenced fund “remained intact”.

He concluded: “The civil claim for fraudulent breach of trust is close to irresistible: the donations created a trust; the trust was deliberately and dishonestly breached; the donors retain a radical beneficial interest in the diverted funds and are entitled to repayment together with damages for the fraudulent breach.”

The £667,000 raised via these fundraisers was investigated as part of the wider Operation Branchform inquiry into the SNP’s finances, though no action was taken on these grounds.

But the investigation did ultimately uncover a 12-year crime spree by former chief executive Peter Murrell, who was last month jailed for embezzling over £400,000 from the party.

The SNP is attempting to recoup some of the cash stolen by applying for a compensation order, though the process could take a number of years.

On the ring-fenced fund, an SNP spokesperson said: “A small number of donors to this independence campaign requested refunds and all those making a legitimate request received a full refund. Anyone else who donated and wishes their money back can request a refund by contacting the SNP.”