Over a decade ago, the Scottish Crown Office launched a botched investigation into individuals linked to the takeover of Rangers FC. This led to wrongful arrests and a significant financial burden on taxpayers. The latest figures reveal a bill exceeding £53 million, with fears it could rise further. A judge-led inquiry is expected to examine the prosecution, further adding to the cost and scrutiny surrounding this controversial case.
Scottish taxpayers are facing a hefty bill of £53 million due to the 'malicious' prosecution of individuals linked to the takeover of Rangers FC over a decade ago. The latest figures reveal the enormous cost of the decision to investigate those who facilitated a deal to rescue the Govan club following its financial collapse in 2012.
The Crown Office, in a statement to the Record, described the scale of compensation payouts following the failed prosecutions as 'regrettable' but insisted 'significant steps to safeguard against similar situations arising again' had been taken. The bungled investigation ultimately resulted in no convictions, with only one individual - former Rangers owner Craig Whyte - ever facing court. He was acquitted by a jury of all charges in 2017. The Crown Office has already paid out £52.2 million to those wrongfully arrested, but the final bill is expected to be higher as it excludes the settlement and expenses awarded to the last of the complainants. There are fears the final cost to taxpayers could exceed £60 million. These figures were revealed by the Scottish Parliament in response to a written question from MSP Murdo Fraser. 'Taxpayers will be appalled that they are continuing to foot an ever-soaring bill in relation to this scandal,' Fraser stated. 'This huge sum is money that would have been better spent supporting our public services which are buckling under the strain of SNP cuts. 'This shocking episode saw innocent men targeted, yet typically in SNP-run Scotland no-one has been held to account or taken responsibility.' The Crown Office and Procurator Fiscal Service (COPFS) also faces the prospect of a separate judge-led inquiry into why two men were wrongfully prosecuted during the fraud investigation. The probe, announced in 2021, could finally commence later this year once civil litigation against the Crown Office is concluded. A COPFS spokesman said: 'We appreciate that these costs are particularly regrettable given the pressure on public finances. Throughout these cases we have sought to protect the public purse from avoidable costs. The Crown is committed to public scrutiny of these cases and more information will be made available in due course. 'Since the prosecutions which gave rise to these civil actions, the Crown has taken significant steps to safeguard against similar situations arising again. New arrangements for managing complex cases have been implemented and are now well established.' Financial experts David Whitehouse and Paul Clark were appointed administrators when Rangers entered administration in 2012. They were arrested in 2014 but all charges were subsequently dropped. The Crown has since acknowledged their prosecution as 'malicious' and both men received £10.5 million each in damages. In an appeal, the Inner House of the Court of Session ruled the Lord Advocate does not have absolute immunity from suit for malicious prosecution. In 2023, a report from Audit Scotland warned the full bill for payouts related to the Rangers malicious prosecution scandal could surpass £60 million. Scotland's most senior judge this week insisted a figure from the Scottish legal system should oversee the inquiry. Lord Carloway, who is stepping down after nearly a decade in the role, said: 'The Crown Office do have certain privileges, et cetera. 'But I think most people would accept that if somebody believes a public officer behaves maliciously, then they really ought to be accountable for that act of malice and that’s basically what we decided. 'I wasn’t involved in whatever negotiations went on between the Crown and the people involved at that. It’s a very large sum of money.' Lord Carloway continued: said: “If we’re talking about examining things that have happened in Scotland, my view is unless somebody is accusing the judicial system of some kind of corruption, or some other conduct, then it has to be a Scottish judge. “And the reason for that is if a Scottish judge is bypassed then that is a direct criticism of the independence of the judiciary in Scotland. “The Scottish Government have got statutory duty to uphold the independence of the Scottish judiciary and rightly so.” Frank Mulholland was serving as Lord Advocate - Scotland's top law officer - when he authorized prosecutions related to the Rangers takeover. His term as Lord Advocate concluded in 2016 and he is now a leading High Court judge. He received a CBE in 2017. James Wolfe succeeded Mulholland as Lord Advocate in 2016 and later had to apologize to parliament for the Crown Office's handling of the prosecutions. Whitehouse and Clark were appointed administrators when the company that operated the Ibrox club entered administration. They departed Ibrox in October 2012 and were arrested two years later. Insolvency expert David Grier was arrested in 2014. Gary Withey, a lawyer who advised Craig Whyte during his takeover of Rangers, was also arrested in 2014.
RANGERS FC PROSECUTION TAXPAYERS CROWN OFFICE MALICIOUS INQUIRY FINANCIAL SCANDAL
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