Supporters of a Commons investigation believe evidence should be taken in Scotland.
A “box office” Westminster inquiry into the Peter Murrell scandal could meet in Edinburgh to put maximum pressure on John Swinney.
House of Commons sources believe bringing any probe to Scotland would make it almost impossible for the SNP not to cooperate.
Murrell, the former SNP chief executive and Nicola Sturgeon’s estranged husband, is facing jail time after he pled guilty to embezzling over £400,000 of party funds.
The SNP’s political rivals, as well as a number of pro-independence figures, believe there should be a separate parliamentary inquiry into the role of Police Scotland and the Crown in the case.
Labour have been pushing for a Holyrood inquiry, but SNP and Green opposition means this option looks to be dead.
A more likely outcome is a probe by Westminster’s Scottish Affairs Committee.
As revealed by the Record last week, the SNP are considering boycotting a Westminster investigation.
However, a number of Labour figures have told the Record any Westminster hearings should be held north of the border, preferably Edinburgh.
Such a move, it is argued, would undermine claims of a London-based committee investigating the SNP.
Supporters of the probe also believe holding hearings on Swinney’s doorstep would make a snub look ridiculous
Labour peer Lord Foulkes said: “There are strong arguments for evidence sessions in Edinburgh, as there would be less of an excuse for John Swinney to appear. It would also remind people that we have two Governments in Scotland.”
“It would be curtains for Swinney’s reputation if he did not cooperate. He would look evasive.”
He said of a Westminster inquiry: “It will be box office”.
Douglas McAllister, the Labour MP for West Dunbartonshire who sits on the Committee, said:
“It’s not unusual for the Scottish Affairs Committee to hold hearings in Scotland.
“Let’s make it as easy as possible for the key witnesses to attend. This is also about restoring public confidence in politics, and rather than hearing evidence down in Westminster which some may regard as remote, let’s bring the Scottish Affairs Committee directly to the people of Scotland.”
If a witness refuses to provide evidence to a Westminster inquiry, a committee can issue a summons.
Defying a summons can lead to a witness being found in contempt for Parliament, with sanctions including admonishments, fines or imprisonment.
The Committee will meet on Tuesday to discuss the potential for a probe into the scandal.
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