Glasgow East MP Natalie McGarry has resigned the SNP whip

The politician was linked to an alleged discrepancy of tens of thousands of pounds in funds raised by a high profile pro-independence campaign group.

Ms McGarry co-founded Women for Independence (WFI) in 2012 and is understood to have played a key role in overseeing finances.

Detectives were called in by WFI after Ms McGarry was asked to account for donations of around £30,000.

Scottish Labour has called for the Glasgow East MP to be suspended from the SNP but Ms Sturgeon said today she needed more information about the case before taking action.

Ms McGarry’s solicitor Aamer Anwar said yesterday that she denied any wrongdoing.

In a statement released this evening, Mr Anwar said: “Natalie McGarry MP has decided to withdraw from the party whip although she is fully aware that this will lead to automatic suspension from the SNP. She has taken this step in the best interests of the party and the constituents of the east end who voted for her.

“She maintains she has done nothing wrong but is conscious that the events of the last 48 hours are distracting from the job she was elected to do on behalf of the SNP. She has a proud record as a principled activist and states she is determined to clear her name.

“Fortunately in our legal system we still believe in a presumption of innocence. What has been reported to Police Scotland are financial discrepancies, yet they have not even established whether criminality is involved.

“Yesterday at Natalie’s request I contacted Police Scotland to advise them that she would speak to them if they wished to. Today I have instructed forensic accountants to obtain all the necessary information which will then be provided on Natalie’s behalf to WFI as well as Police Scotland to assist them in reaching a swift conclusion, until that happens Natalie will on legal advice be making no further comment. She will continue to fight for the people of the East End.”

 Scottish Labour's Public Services spokeswoman Jackie Baillie said in a statement released this evening: “Natalie McGarry is right to resign the SNP whip.

"It is disappointing that as the leader of the SNP Nicola Sturgeon didn’t act earlier.
 
“We now need to know who knew what, and when, in the SNP about these allegations. Nothing short of full transparency from the SNP will be accepted by the Scottish public.”

A statement released by WFI yesterday said: “Women for Independence have, for several weeks now, been examining the finances of the organisation, after our senior support staff raised concerns in late summer.

“We have identified an apparent discrepancy between our income (via donations) and the expenditure which we currently have evidence of.

“Because of the potential seriousness of this issue, the National Committee of WFI decided that the right thing to do was to pass this matter to the police.

“The discrepancies occurred during the period from 2014 through to our formal constitution as an organisation at our first AGM in March 2015.

“It is the robust and appropriate systems and procedures that were adopted following that AGM that have revealed the discrepancies concerned.

“The situation we have referred to the police for further inquiry is serious.

“But we want to stress to our supporters that appropriate, robust and transparent controls are now in place to protect any monies donated to WFI now or in the future.

“We hope that our members and supporters are reassured that WFI have acted promptly and taken the appropriate steps.

“We will be making no further public comment on this matter until the police have conducted their investigations.”

A spokeswoman for Police Scotland said: “Enquiries are continuing.”

McGarry is the second SNP MP to be caught up in a scandal after Michelle Thomson resigned the whip when a police probe was launched into her property deals.

In a statement the SNP said:  “Following the reporting to Police Scotland of issues relating to the accounts of Women for Independence, Natalie McGarry MP has today indicated that she will temporarily be removing herself from the SNP whip at Westminster, which as a result will see her membership of the Scottish National Party suspended while the matter is investigated. 
 
“Natalie McGarry has taken this step in order to allow the full and proper investigation of the issue. She now hopes that the investigation can proceed as quickly as possible, is clear that there has been no wrongdoing on her part, and will not be commenting further until the matter is resolved.”