An MP at the centre of a police investigation into the finances of Women for Independence is facing questions about funds drawn from the group’s official bank account.

Blank cheques totalling a “few thousand pounds” from WFI’s account were written to Natalie McGarry before she was elected as an SNP MP.

The transactions form part of the WFI complaint to Police Scotland, but McGarry said the money was to reimburse her for payments she made via a credit card. WFI, a high-profile referendum campaign group, contacted the police in November over nearly £40,000 in donations that were apparently unaccounted for.

McGarry, elected in May to serve Glasgow East for the Nationalists, helped found WFI and was in charge of finance at the group until the spring. She maintains her innocence and denies any wrongdoing. She resigned the SNP whip after the allegations emerged, which automatically triggered her suspension from the party.

Until now, the focus has been on a PayPal account which received around £51,000 in WFI online donations and was controlled by McGarry. The PayPal system was linked to her own bank account. After months of fielding questions by senior WFI figures about the whereabouts of donation income, McGarry paid the group around £6,000 after becoming an MP. She denies any wrongdoing.

However, sources close to the group say the police complaint also centred on transactions from the WFI’s official, cheque-based treasurer’s account – separate from the PayPal account.

McGarry was not a signatory to this account but blank cheques were created for the purpose of meeting the cost of goods and services, which was McGarry’s responsibility. The initial WFI audit, which was followed by a police referral, was triggered when an examination of this account revealed funds were lower than expected.

Picture: McGarry

A source close to the police investigation said at least three WFI figures had been interviewed so far.

At the time of the police complaint, WFI stated: “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.”

Picture: McGarry's solicitor, Aamer Anwar

A Scottish Labour spokesperson said: “It is essential that the police inquiries into this whole case are conducted as quickly as possible, so that people in Glasgow East have some transparency about what exactly Natalie McGarry has been up to.”

Scottish Conservative MSP Alex Johnstone said: “If these reports are correct, it would appear there are further questions for the MP to answer.”

Aamer Anwar, the solicitor representing McGarry, issued a statement on her behalf, saying: “Ms McGarry, along with several individuals, was provided blank cheques by WFI as a matter of necessity, as two of the signatories lived 70 miles apart. On many occasions Ms McGarry and others would utilise credit cards to pay for goods or services and accordingly would be reimbursed by cheque. It might be better if certain individuals in WFI stopped operating under the cover of anonymity and actually explained their own key roles in the shambolic accounting practices of WFI. Ms McGarry maintains that she is innocent of any wrong doing.

“In addition, those making these allegations will be more than aware that at all times bank statements relating to this cheque account were sent to others and not Ms McGarry.”