Alba Party election campaign in balance after allegations of fraud in 'tens of thousands'

Kenny MacAskill said the fraud had “torpedoed” the party’s chances of fielding candidates for Holyrood - and that the party’s founder Alex Salmond had “some awareness of what was coming” before he died.

The Electoral Commission, which governs political parties’ ability to stand for election, confirmed that it had been in discussions with Alba about “deregistration” while Police Scotland said its investigation - begun last May - was “ongoing”.

However some prospective candidates, including former SNP MP, Angus Brendan MacNeil, told LBC that either the “leadership needs to change its view, or the leadership needs to change.”

Speaking to LBC Mr MacAskill admitted: “We’re in a very difficult position. We found financial irregularities. We’ve reported them to the police. We believe that we have been the victims of a significant fraud and it’s left us in a precarious position.

“We’re in discussions with the Electoral Commission because to be able to continue as a political party, we require to have funds. We also have obligations to meet in terms of what the Electoral Commission requires, and indeed to make payments to individuals and meet the liabilities of executive members. So we’re in discussions. We’ll have to see. But it is very, very difficult.”

Asked how much the fraud amounted to he said: “I think it'll be for the police to speculate, but we're talking tens of thousands and given that we are a small party, this has holed us.”

He added: “There have been some donors, but I cannot take money from people if it's going to go into a black hole. So we require to forewarn people about that.

“You know, Alex, I think, had some awareness of what was coming. But he passed before things ultimately broke.”

He stressed the Electoral Commission had been “very supportive” but the decision on whether the party stands candidates will lie with its National Executive Committee.

He added: “We have accounts prepared, but we've not yet been able to find an auditor. so there are statutory obligations that we might not be able to meet.

"I've been able to reassure members of the probity of those who are currently operating and working for the party's interest, and indeed those who are in elected office. But we have obligations to the Electoral Commission that we are challenged to meet.

"We're required to pay wages of staff, we're required to meet the bills of individuals who supply to the party and Indeed, to have a campaign - at the present moment, it would be fanciful to think that we're able to fund or provide all of those things.

“There are one or two in the party who are desperate to stand, and I can understand that. But equally, we also have a duty to those who are members of the NEC who would face personal liability because you cannot go on in a business or in a political party trading as insolvent. It would simply be wrong.”

A spokeswoman for the Electoral Commission confirmed it had been in discussions with the Alba Party and added: “We have provided the Alba Party with information about the process for deregistration.

“When a party deregisters, it can no longer contest elections under its registered name, descriptions or logo. Candidates who wish to stand in an election would need do so as Independents or for another registered party.”

However some prospective candidates are urging the NEC to continue with the election campaign, including the niece of Alex Salmond, Christina Hendry, and former SNP MP Angus Brendan MacNeil.

He told LBC: “As far as I’m concerned, we can stand. I just want to make sure we definitely stand.

“If we’re definitely standing and we’re giving hope for independence, the sums of money we’re talking about aren’t huge.”

“We know that politically we've been helped by this, although it might not seem like it when a party's in a bit of sort of turmoil, but I think its short term turmoil for longer term political gain.

“We do have a feeling as well that if we did get control and we did ask people for money, explained honestly why we need it, the situation we're in, that independence supporters seeing that this is a hinge moment in politics in Scotland, in the Parliament making sure we have a pro independence majority, they would support us standing.”

Acknowledging concerns over trust while a police investigation is ongoing, Mr MacNeil said transparency was essential. “Whatever money’s coming in, you say. Whatever money’s going out, you say.”

He conceded there was an internal debate over the issue, but added: “I wouldn’t say there’s maybe a split in what we can do.

“Splits are temporary and probably from honestly held points of view at present.”

Pressed on whether the leadership needed to change, Mr MacNeil replied: “We either need to change the leadership’s point of view or the leadership has to change. I would prefer it if the leadership point of view changed.”

Mr MacAskill, however, said only the membership could remove him as leader.

“I was elected by the annual conference that took place last year. That is the democratic mandate and I and the leadership team can only be removed by the members,” he said.

“The position at the present moment is myself and other members of the senior management leadership team on behalf of the NEC met with the Electoral Commission on Friday. They are reflecting on what we have said to them. They're going to come back and give us advice. We very much welcome their wisdom.

“We will then be required to return to the NEC to decide what position the party takes. Individuals can act as they wish, but at the end of the day, we have a democratic mandate from the party and individuals lack that.”

He added: “We have always sought to revere Alex Salmond’s memory and irrespective of what happens to the Alba Party, we will continue to support Moira, his widow and wife of 44 years.

“We will continue to support those pursuing justice in the courts because a huge injustice was perpetrated against Alex Salmond and indeed many of us are involved at the present moment in the establishment of a foundation in his memory that will support young people to achieve their full potential in Scotland. So Alex will never be forgotten.”