Deputy First Minister faces Police inquiry over fiddled mortgage expenses claims as more revelations on msps property deals come to light.

A fiddle or a muddle ? .. but when it comes to the Scottish Parliament, a muddle is always a fiddle .. and that's how one person viewed Deputy First Minister Nichol Stephen's claims for mortgage interest payments from the Parliament, as a member of the public has made a complaint to Lothian & Borders Police, asking for an investigation into the affair - reports the Sunday Herald newspaper.

Of course, it has taken a member of the public to ask for that step .. as it seems there are no MSPs able to 'cast the first stone' these days ... with virtually everyone at Holyrood having some dark secret in their closet, and being too terrified of revelations on their own conduct coming out in tit for tat leaks - don't worry - plenty more to come out, people !

I wonder how Lothian & Borders Police will handle the investigation ? Another whitewash perhaps ? Ultimately, they can only do what they are told to do ... and the force being as politicised as it is now, I doubt we will end up with a situation where Stephen & a host of other MSPs who have fiddled their expenses & failed to declare income, interests & more, will be carted off in the Black Maria (YES!)

I don't have particularly fond memories of the way Lothian & Borders Police handle investigations ... I remember, for instance, one time when a major drugs investigation was underway in Jedburgh, using my own home as a base for surveillence, a tabloid journalist called me one day to ask the motives of a serving CID officer under the Detective Chief Inspector of CID in "G" Division at Hawick at the time, who was ratting out his own [married] boss for having an affair with a [married] victim of a burglary he had once 'interviewed'. This, and a lot of other things I took note of at the time, including [still serving] senior Officers seemingly out to get their own PCs for making suggestions to the public, led me to believe the Force was fighting itself .. so much that it botched that particular drugs op and left Jedburgh awash with drugs .. to this day it seems. I have still to write about all this sometime ...

There is also the not-so-good record of Lothian & Borders Police at the Scottish Parliament .. on everything from stolen laptops to allegedly stolen cellular phones (all inside jobs by Parliamentary Staff, apparently .. no one caught yet of course) . and then there is the well known cocaine den at Holyrood, where some staff seem to be in an almost permanent haze of the white stuff. Frightening, one would think .. but all allowed to go on right under everyone's noses, as it were. or is it up everyone's noses, I forget .. with all the leaks to leak these days.

Maybe we need to call in Taggart or Hamish MacBeth on this one ... for a wee bit of impartiality ?

Anyway, not to be outdone by the LibDems - who really need chucking out of Scottish politics .. the Guardian & Observer (yes, ENGLISH newspapers) are reporting on the deeds of former & current SNP MSPs and a Green MSP, which it is only fair to report, because it shows there are a lot of the MSPs at it, at the Scottish Parliament.

Well, it will be interesting to see if the Police are allowed to do an investigation .. and even if Stephen is investigated - surely along with several other MSPs ... how will the Crown Office react ? Will they receive political orders to drop the case as Stephen is a Minister in the Scottish Executive ? ... same going for other MSPs who undoubtably should be investigated such as John Home Robertson ... no prosecutions because they are members of the governing party ?

Only time will tell .. but of course, more revelations to come of course ... and next time Mr Stephen .. instead of being kissy kissy with the likes of Tom McMorrow & ICAS, ... please take note of what members of the public have warned you about. Resolving a few issues would save a lot of headlines, you know.

UPDATE 27 November : The Scotsman are covering the Stephen expenses story here : Deputy first minister faces police inquiry over expenses

Also, to answer questions on my interest in Nichol Stephen's expenses fiddle, which came out of ICAS claims to the press, back in July, of getting the OK on amendments which run contrary to my campaign regarding regulation of legal complaints in the LPLA Bill, read this :
Scottish Accountants try to amend LPLA Bill for their own benefit - but refuse independent regulation safeguards for the consumer

Links from the Sunday Herald and Guardian to follow :

http://www.sundayherald.com/news/heraldnews/display.var.1042292.0.0.php

Stephen faces police probe on mortgage
By Paul Hutcheon

THE DEPUTY First Minister is facing a police probe into a breach of Holyrood expenses guidelines that resulted in him receiving around £50,000 in mortgage payments charged to the taxpayer.

Lothian and Borders police have been asked to investigate why Nicol Stephen, the Scottish Liberal Democrats leader, gave inaccurate information to parliament about a loan he took out on a property in Edinburgh.

Solidarity MSP Tommy Sheridan is also threatening to take the matter to Holyrood's standards committee.

The row follows the Sunday Herald's revelation last week that Stephen, who is also the Scottish Executive enterprise minister, is billing the taxpayer for mortgage interest payments on a house jointly owned with his wife. He has been charging the public almost £9000 a year through the Edinburgh accommodation allowance (EAA) to stay in a house in Morningside, despite rules blocking payments for joint mortgages.

Stephen failed to tell the parliament in 2003 that his mortgage was taken out with his wife and instead submitted a document which only had his name on it, thus entitling him to the payments.

The revelations prompted Stephen to inform officials about the false information he provided just hours after the Sunday Herald story came out.

The parliament's corporate body, which runs Holyrood, ruled on Thursday that Stephen had "failed to follow the guidelines" on allowances and slapped the MSP on the wrist. But Holyrood stopped short of calling on Stephen to pay back the near £50,000, as members ruled he had not intended to break the guidelines.

Stephen accepted his error but claimed he had not benefited financially. The deputy First Minister said he would transfer the property into his name, a move that will entitle him to keep claiming the payments.

However, a member of the public has urged police to investigate the Minister's role in providing false information to the parliament. The letter of complaint calls on officers in Lothian and Borders police to examine whether an "error" was committed and why the LibDem leader declined to inform parliament he had a joint mortgage.

And Tommy Sheridan said: "I am going to write to the presiding officer, George Reid, because I think it is wrong that people who receive the allowance judge whether another member who received the EAA broke the rules. If he doesn't do anything about it I will refer it to the standards committee."

A Scottish Liberal Democrats spokesman said last night: "There is no question of gain to Mr Stephen or his wife and no cost to the parliament. The parliamentary authorities have made it clear that there has been no improper use of allowances."

and now the Guardian website reports on msps property transactions ...

http://politics.guardian.co.uk/scotland/story/0,,1957465,00.html

MSPs buy and sell houses - and taxpayer pays

Politicians defend profitable Holyrood perk after Nationalist makes nearly £40,000 on flat

Lorna Martin, Scotland editor
Sunday November 26, 2006
The Observer http://www.observer.co.uk

Calls to scrap the accommodation allowance for MSPs were stepped up last night after it emerged that members of the Scottish Parliament were buying and selling taxpayer-funded properties to each other and keeping the profits.

The Observer has learned that Andrew Wilson, the former Nationalist MSP, made nearly £40,000 when he sold his Edinburgh flat to Nationalist MSP Rob Gibson and his partner, the Green MSP Eleanor Scott, after losing his seat in the 2003 elections. All three have billed the public for mortgage interest payments on the same property.

Wilson bought the flat in May 2000 for £92,000 and sold it more than three years later for £130,000. He qualified for the housing perk because he lived too far away to commute daily to Edinburgh. Land registry documents show that when he was an MSP, Wilson was registered as living in Milngavie, Glasgow, at a property owned by the parents of his friend Duncan Hamilton, another former Nationalist MSP.

When Wilson sold his Edinburgh flat to Gibson and Scott, they started to claim mortgage interest payments on the property. It will now be worth significantly more than the £130,000 they paid.

While there is no suggestion the politicians have broken any rules, it highlights the money-making potential of the housing allowances for MSPs.

Last night Gibson said Scots were getting their MSPs 'dirt-cheap'. He said he would welcome an independent review but insisted the current system was effective and efficient.

'If you add up the costs of those who rent or those who stay in hotels, buying is by far the cheapest option,' he said. 'When Andrew [Wilson] was selling his place the market was very buoyant, but who knows what it might be like in four years?

Gibson added: 'What has also not been mentioned are the capital costs, such as furniture, we are required to make for a second home. I would welcome an independent review as it would reveal the comments of Tommy Sheridan and the tabloid suggestion that this is a money-making scheme to be inaccurate.' Dr Scott accepted that there was a public perception issue regarding the allowance. 'It is important that MSPs are not making rules to suit themselves,' she said. 'That is why the Greens have tabled a motion asking for a completely independent review of all MSPs' expenses and allowances. I'd be happy to adhere to whatever they come up with.'

Modelled on the Westminster system, Holyrood's accommodation allowance permits MSPs to claim rent or mortgage interest payments on a property in Edinburgh, or to stay in a hotel. Annual payments through the allowance are capped at about £11,000. The scheme also permits recipients to claim for council tax, as well as for a television licence and bills.

On Friday, it emerged that Deputy First Minister Nicol Stephen had broken Holyrood guidelines after claiming thousands of pounds of taxpayers' money to buy a home in Edinburgh, on which he had a joint mortgage in place. The Scottish Parliamentary Body said the rules stated that MSPs were only entitled to reimbursement of mortgages in their own name after 2001. However, it accepted that Stephen had made no financial gain and that the claim had been made in error.

At least 48 MSPs have profited from the mortgage interest scheme, which has cost the taxpayer about £2m since 1999. The main complaint about the perk is that it allows MSPs to buy properties with public cash and then keep the profits when a flat is sold.

Also controversial is the practice of renting from relatives. Labour MSP John Home Robertson has been billing the public £600 a month to stay in his son's flat while Transport Minister Tavish Scott admitted billing the taxpayer to stay at his sister's flat.

Scott used taxpayer's money to help buy a £100,000 flat, made a £36,000 profit, and then used that to help buy a £300,000 family home. He now bills the taxpayer £1,000 a month for that.

Tommy Sheridan, the Solidarity MSP and a long-time critic of the scheme, called for all MSPs who have financially gained to repay any profits.

In a statement on his website, he said: 'There should be no profit made on expenses from the taxpayer and anyone who has made a profit, or is about to, should do the decent thing and give it back.'

Earlier this month, the parliament's presiding officer said the scheme would be reviewed after attracting heavy criticism.

Deputy First Minister guilty of expenses fiddle - Wrist slapped & told not to do it again.

Firstly, let me congratulate Mary McDonald of Glasgow, for winning her battle against Glasgow Housing Association who terrorised her with a court case over a £277 repair bill which was due to thugs regularly vandalising her tenement block.

In a quote from the Scotsman report you can read here: OAP wins legal fight after being charged for vandalism - "Sheriff Martin Jones QC brought cheers from her supporters as he found in her favour. He agreed GHA had let down Mrs McDonald - and that she should not have to stump up the cash."

I think Mrs McDonald should be entitled to some compensation from the GHA over their actions towards her. What a disgrace, to terrorise a pensioner with a court case, over something which was no fault of her own, and I hear the GHA lawyers really sunk their teeth into this case. The GHA must have felt they were in 'legal bully heaven', taking on an 86 year old lady who was the sole home owner in a tenement.

What was the real motive ? Take poor Mrs McDonald to court for years so they might be able to force the sale of her flat to pay the legal bills of a case which she might not win, and the GHA would end up with the property ?... It's been done before, you know ... oh yes .. a regular tactic is this.

Well Done Mary McDonald, and well done to all your supporters.

Now back to today's article on the lurid goings on at Holyrood by way of milking the expenses.

Some people have been asking me if the recent stream of news related to MSPs fiddling their expenses for mortgage payments & dodgy house purchase deals, might be linked to the forthcoming vote on the Legal Profession & Legal Aid (Scotland) Bill.

Well, one could say .. Yes .. to that one, but not just because of the LPLA Bill ... it seems that some are taking revenge for both the Executive & Parliament's interest in certain areas of legal & public life, shall we say ? However, what has come out so far, on the expenses fiddles, isn't anything which hasn't been known about for awhile ...

Since the LPLA Bill was announced earlier this year, the likes of the Law Society of Scotland, and it's regulatory allies, have been collating as much information on all msps as possible. Ah .. you say I rant on this one ? Not at all .. It seems that a request was put out to all solicitors, Solicitor Property Centres, & Estate Agents, for information on property transactions involving Scotlands politicians .. and also, their legal affairs .. to name but a few points of interest being taken in oor politicians.

How do I know this ? One of the memos was read out to me, as it passed through a legal firm I have a source with. I'm sure some MSPs now know what I am talking about - after all, they aren't stupid. I'm sure they worked out awhile ago, their property transaction details ended up, shall we say, less than confidential ? .. and fell into the hands of certain people who are going to be seriously curtailed in power by oncoming legislation ... motive enough, I say .. and a plot almost worthy of a movie, if it didn't have so many leaks. I wonder, for instance what JHR would do if I told him that certain lawyers were babbling his legal business all over town ?

On the subject of leaks, there arrived a plain brown envelope on my desk this week, containing information & photographs on none other than, David McLetchie. Ah .. my old friend McLetchie from Tods Murray Solicitors - the legal firm which was first assigned to defend crooked lawyer Andrew 'Fraudster' Penman of Stormonth Darling Solicitors, Kelso .. thus giving me an interest in Mr McLetchie's career.

Obviously, someone wants to ruin Mr McLetchie's political career, and knowing how I feel about his legal firm's interference in the Penman case, along with McLetchie replacing the galant Mr Gallie on the Justice 1 "Regulation of the Legal Profession" inquiry in 2001, because Phil was going to ask some hard questions of the Law Society, they assume I will do the dirty deed and leak it. Oh well, why not leak it then.. but there is a time for everything, as they say.

Anyway, I see Nichol Stephen was,found guilty, of his mortgage expenses fiddle, so I will briefly cover that one today. Read my earlier article here : Scottish Parliament withholds documents as Deputy First Minister faces allegations of questionable mortgage arrangements.

Try making a false claim to the Benefits Agency .. and you may find yourself with a fine, or even jail .. but what happens when the Deputy First Minister fiddles his mortgage payments ? ... answer, not much, as you can see.

I don't think blaming the Bank for mistakenly sending papers to Mr Stephen's home instead of the Parliament will wash to the public on this one ... it certainly would be laughed out of court if introduced as evidence in a criminal case .. what is it they say .. ignorance of the law is no excuse ? but the Scottish Parliament Corporate Body certainly wont scold Stephen too much .. after all, he's one of their own .. and there are many more at the expenses fiddling.

A quote from the Scotsman article today :

In March 2003 Mr Stephen's office gave Holyrood's allowances office a document which showed that his was the only name on the mortgage papers. However, this was sent to Mr Stephen in error by his bank and the actual mortgage agreement - only given to the authorities on Thursday - showed that he and his wife held the mortgage jointly.

I understand that is a lie. Officials at the Parliament (and the newspaper which originally broke the story) had actually seen this document much earlier than last Thursday ... lie after lie after lie ... that's not much of a point scoring position for the office of Deputy First Minister, now, is it.

Tommy Sheridan is quoted in the Scotsman today saying "This is yet another example of MSPs using the rules to suit themselves and getting away with it. If Nicol Stephen had been a social security claimant wrongly getting benefit he would be in court or in jail by now but the parliament is lightly rapping his knuckles. "This is the final nail in the coffin of the expenses scheme; it should be suspended immediately and the profits handed back to the parliament."

Sheridan is probably saying what the public feel on this one ... time to suspend the milking scheme and hand back the money .. but let's have it all out in the open and see who has abused their expenses accounts at Holyrood.

As for Nichol Stephen .. a Fibdem .. well, he lied about his mortgage expenses milking to begin with .. yes, he lied. He denied it .. so, let's be having him out please ... no liars needed at the Scottish Executive or the Scottish Parliament .. but, come to think of it .. if we go by those terms .. the debating chamber of the Scottish Parliament will be empty .. from the Speaker down to the clerks !

I think what we need to see now, is some leaks over the undeclared stuff, because there are a lot more fiddles going on in the background than has been publicised so far. Time for some more revelations then ?

Link : http://thescotsman.scotsman.com/index.cfm?id=1747072006

Deputy first minister is guilty of breaking Holyrood expenses rules
PETER MACMAHON SCOTTISH GOVERNMENT EDITOR

NICOL Stephen, the deputy first minister, was yesterday found guilty of breaking Holyrood's expenses rules while he was claiming thousands of pounds of taxpayers' money to buy a flat in Edinburgh.

The mortgage on Mr Stephen's home in one of the Capital's most sought-after areas was held jointly with his wife, Caris Doig - a clear breach of Holyrood's regulations, parliamentary authorities ruled yesterday

Mr Stephen, who has risen to power on the back of a squeaky-clean image, yesterday admitted that he regretted the "error" but stressed that the investigation by Holyrood's governing body had found that neither he nor his wife had gained from the arrangement.

Last night the latest controversy over politicians' expenses led to a warning from the parliamentary authorities to MSPs to follow the rules and further calls for the allowance scheme to be scrapped.

Mr Stephen's joint mortgage was first revealed by a Sunday newspaper six days ago. At first, both the deputy first minister and the parliament denied that he had done anything wrong.

But members of the Scottish Parliament's Corporate Body, which manages Holyrood's budget, were given fresh details of the mortgage arrangements by Mr Stephen on Thursday.

They showed the names of both the minister and his wife on the agreement, contradicting an earlier document, lodged with the allowances office, which showed that he was the sole mortgage holder.

As MSP for Aberdeen South, Mr Stephen is entitled to claim for the interest on a mortgage for a second home in Edinburgh's exclusive Morningside.

A spokesman for the parliament said: "The SPCB found that the member had failed to follow the guidelines for the scheme by having a joint mortgage in place, post 2001.

"At this point, the guidance was clear that members were entitled to reimbursement of interest if the mortgage arrangement was in their name only."

The SPCB found that neither Mr Stephen nor his wife had gained from the "error", as the mortgage payment would have been the same if it was just in his name.

Mr Stephen, who has been claiming £9,000 a year allowances on the £190,000 home he bought with his wife in February 2002, said: "I fully acknowledge there has been a breach of the guidance.

"I very much regret this error. I sincerely believed the arrangements I had put in place were acceptable."

He said he had "acted promptly" to resolve the issues with the parliament and he had made the claim "in good faith and with no financial gain".

Mr Stephen said he had already taken steps to transfer the property and the mortgage into his name.

The parliament's spokesman added a warning to all MSPs last night. He said: "The SPCB concluded that this breach served as a reminder to all members to ensure they are alert to every detail of the allowances scheme and the handbook issued to them as guidance."

The allowance scheme has attracted heavy criticism with other ministers and MSPs under the spotlight for their claims.

Tommy Sheridan, the Solidarity MSP, said: "This is yet another example of MSPs using the rules to suit themselves and getting away with it. If Nicol Stephen had been a social security claimant wrongly getting benefit he would be in court or in jail by now but the parliament is lightly rapping his knuckles.

"This is the final nail in the coffin of the expenses scheme; it should be suspended immediately and the profits handed back to the parliament."

WHAT'S IN A NAME: KEY DETAIL OF MSPs' SCHEME

A REVISED members allowances scheme was agreed by the parliament in June 2001. It said that MSPs could claim the Edinburgh Accommodation Allowance (EMA) provided they were the only ones named on the mortgage of the property.

In March 2003 Mr Stephen's office gave Holyrood's allowances office a document which showed that his was the only name on the mortgage papers.

However, this was sent to Mr Stephen in error by his bank and the actual mortgage agreement - only given to the authorities on Thursday - showed that he and his wife held the mortgage jointly.

Before they pay out the EMA, officials require MSPs to show them their loan agreement or a loan offer along with a statement of the payments being made.

Some MSPs are still claiming allowances for mortgages entered into jointly with spouses before the rule change.

MSPs whose home is in one of 32 constituencies beyond easy reach of Holyrood can claim up to £10,900 a year in mortgage interest payments.

Scottish Parliament withholds documents as Deputy First Minister faces allegations of questionable mortgage arrangements.

Revelations on expenses milking continue on our elected politicians, with Nicol Stephen, the Deputy First Minister caught out this week by the Sunday Herald over a £9000-a-year allowance he receives from the taxpayer to meet interest payments on a £190,000 house he owns with his wife.

In a quote from the article :

Nicol Stephen, who is also leader of the Scottish Liberal Democrats, has been claiming interest payments for a house he bought in Edinburgh in February 2002.

Both Stephen and his wife are named as debtors in the standard security agreed with mortgage providers. That means if the mortgage is not paid, both are legally responsible.

Yet the Holyrood Allowances Office says it has another document – which it has refused to identify – which lists Stephen as the only name on the loan. There is no clear legal ruling on which document constitutes the mortgage.

The LibDems have come out with a statement on the matter, also contained in the article : “The property is jointly owned by Mr and Mrs Stephen, but the mortgage interest repayments are the sole responsibility of Nicol Stephen, in line with the parliament’s accommodation allowance rules.”

However, with Holyrood refusing to hand over particular documents on the matter .. it looks like there is something to hide ... surely, as the Parliament loves to portray itself as being transparent *laughs* ... they would have been just as well publishing any relevant documentation in response to media inquiries .. but with this having the makings of yet another scandal of milking the allowances at Holyrood .. the Parliament is proably trying to cap any further investigations from the media.

Well .... I don't think that's going to work .. because there seems to be more information coming out on certain msps who are going to have significant problems explaining certain transactions I am not going to disclose just yet ... and I am certainly looking forward to those reports being published.

It must be great for all these politicians to get their mortgages paid while the rest of the country wallows in debt & mortgage hell - at the mercy of Banks, lawyers & other financial institutions who are gunning for their every penny and busy throwing families out of their homes for mortgage arrears .. but what has been very noticable in all of this is the lack of any remorse at all on the part of msps over their exposure in the allowances milking scandals to hit Holyrood & the Scottish Executive recently.

Just take a look, for instance, at last week's Sunday Times interview with John Home Robertson MSP : A new lord of the manor in waiting ... which came after the Sunday Herald's excellent expose on Home Robertson, who was renting his own son's flat for £7,000 a year at the taxpayers expense .. which I covered here : Scottish Labour Politician rents his own son's flat for £7000 a year, charging it up to taxpayers

Home Robertson is in waiting for a peerage, by the sounds of his arrogance ... a peerage which seems to be on offer so he will step aside to allow another Labour politician to take his seat ... but Angus McNeil of the SNP has come forward on that one, asking the peerage be reviewed - which you can read about here : Labour MSP at centre of peerage nomination row ... and certainly, the Metropolitcan Police should be taking note of that one in the current loans for peerages scandal to hit all political parties at Westminster.

It seems that Labour & the Fibdems are out to take as much as they can from the taxpayers wallet before they end up getting kicked out at next year's Holyrood elections ... and with the Scottish Parliament Corporate Body fudging the issue of doing anything to stop the expenses milking ... there will be a lot of profit taking by msps up to next May.

On issues relating to law .. I have been asked to do an article on some of the themes which cropped up in comments on an article I did on Douglas Mill's threat to challenge the LPLA Bill in terms of ECHR & other matters on the legal profession's seemingly god given right to regulate itself, which I covered here : Law Society of Scotland threatens Court challenge against Scottish Executive over LPLA legal reform Bill . It seems my article on Douglas Mill has touched a raw nerve with some, so I will tackle some of the issues of self-regulation this coming week.

Please don't be shy, members of the Scottish legal profession, about leaving your real names & contact details when you comment on my articles.

I sometimes get threats & nasty emails littered with swearing & slander from lawyers who even use their legal firms email boxes .. and when I have a nice collection, I will publish them all .. so if you don't like me, or you don't like clients who take issue with lawyers who defraud clients ... then speak up and tell us just how bad we all are . We can take it - after all, its us who are the victims, not those of you in the legal profession ... and it's taken so long to get politicians to recognise that fact ... a few more insults or threats from the legal profession would just put the icing on the cake.

Article, from the Sunday Herald, at : http://www.sundayherald.com/59226

Deputy first minister embroiled in ‘houses for spouses’ row

By Paul Hutcheon Scottish Political Editor

THE deputy first minister is facing serious questions over a £9000-a-year allowance he receives from the taxpayer to meet interest payments on a £190,000 house he owns with his wife.

Holyrood rules state that MSPs cannot claim the controversial Edinburgh Accommodation Allowance (EAA) unless theirs is the only name on the mortgage for the property in question.

Nicol Stephen, who is also leader of the Scottish Liberal Democrats, has been claiming interest payments for a house he bought in Edinburgh in February 2002.

Both Stephen and his wife are named as debtors in the standard security agreed with mortgage providers. That means if the mortgage is not paid, both are legally responsible.

Yet the Holyrood Allowances Office says it has another document – which it has refused to identify – which lists Stephen as the only name on the loan. There is no clear legal ruling on which document constitutes the mortgage.

Stephen is now facing questions on why he is claiming interest payments on a property he only half-owns. If that property is sold, his wife would normally be legally entitled to a share in any profits, despite the fact that the taxpayer helped to buy it.

It is the latest controversy to arise from the discredited EAA, which permits some MSPs to either rent a property in the capital, or to claim mortgage interest on a flat or house.

The scheme has suffered a barrage of negative publicity after this news paper disclosed how

Labour MSP John Home Robertson was using the perk to claim £7000 rental on a property owned by his son.

This was followed by revelations of how transport minister Tavish Scott used the profit made on one taxpayer funded flat to help buy a family home in Morningside worth £380,000. Holyrood is now reviewing the allowance.

The Aberdeen South MSP bought the Morningside property four years ago. Deeds from Registers of Scotland, an Executive agency, show he and his wife are both named as debtors in the standard security.

A Scottish LibDems spokesman said last night: “The property is jointly owned by Mr and Mrs Stephen, but the mortgage interest repayments are the sole responsibility of Nicol Stephen, in line with the parliament’s accommodation allowance rules.”

MSPs were able to claim the payments under a joint mortgage until a rule change in autumn 2001. Now allow ances are only paid if the mortgage is in the MSP’s name alone. The mortgage on Stephen’s house was taken out in 2002.

A spokesman for Holyrood’s Allow ances Office said it had seen a document which showed Stephen as the only name on the loan agreement.

But a senior legal source told the Sunday Herald: “It’s extremely unusual for a standard security agreement to have two names, while the loan agreement has only one. Has the Allowances Office seen the standard security, and how does it square the fact that two people are names as debtors when the loan document lists only one? There are serious questions to be asked.”

Controversy has been absent from Stephen’s ministerial career, yet he has made substantial claims under the EAA.

Reports last year said Stephen was the second-highest claimer of the perk, claiming nearly £53,000 since 1999.

In 1999-2000, the MSP pocketed £5038 under the scheme. In 2004-05, that increased to £10,200. He now claims £748 a month in mortgage payments.