The SNP’s treasurer has been arrested by police in connection with their investigation into the party’s finances.
Colin Beattie, 71, who has been the MSP for Musselburgh since 2011, was taken into custody by officers on Tuesday morning.
He was later released without charge pending further investigation.
It comes after the arrest and release of former SNP chief executive Peter Murrell, who is married to Nicola Sturgeon.
Ms Sturgeon is now the only one of the three people named on the SNP’s last set of accounts not to have been arrested.
Mr Beattie, born in Forfar, served as the party’s treasurer for 16 years from 2004 until 2020 when he was replaced by Fife MP Douglas Chapman.
But Mr Chapman quit in frustration after claiming he had not been given enough information to do the job.
Mr Beattie stepped in again and resumed his role overseeing the party’s finances.
First Minister Humza Yousaf admitted he had been “surprised” by the arrest.
He told journalists in Holyrood: “It’s clearly a very serious matter indeed. Of course I’m surprised that one of my colleagues has been arrested.”
The SNP leader also denied his party was being run in a “criminal way”.
The ongoing police investigation centres around the spending of £600,000 which was originally earmarked for independence campaigning.
Dozens of police were in attendance at Mr Murrell and Ms Sturgeon’s home on April 5 when he was arrested.
Officers stood guard outside as a tent was erected outside the property as investigators searched the Lanarkshire home for evidence.
On the same day, a campervan worth more than £100,000 was seized from Mr Murrell’s mother’s home in Dunfermline.
SNP sources claimed the luxury motorhome had been bought for campaigning in the 2021 election due to Covid restrictions.
But opposition MSPs cast doubt on that explanation.
It also emerged the SNP’s auditors quit last year and have not yet been replaced.
Mr Yousaf revealed he had been unaware of this before he took over from Ms Sturgeon in the top job.
Party insiders warned the SNP leader must now drastically overhaul his party to increase transparency.
A leaked video from 2021 showed his predecessor Ms Sturgeon brushing off concerns from members about the SNP’s finances.
Mr Yousaf has promised a review into what must be fixed within the party.
Mr Beattie’s arrest comes hours before Mr Yousaf planned to outline his priorities for his government as MSPs return to Holyrood.
‘Deeply concerning’
Scottish Labour deputy leader Jackie Baillie said: “This is yet another deeply concerning development and the Police Scotland investigation must be allowed to proceed without interference.
“For too long, a culture of secrecy and cover-up has been allowed to fester at the heart of the SNP.”
Scottish Tory MSP Craig Hoy said: “The police investigation into the SNP’s murky finances is consuming the party – and Humza Yousaf has to get a grip of the situation, rather than stand by wringing his hands.
“He must show some leadership and suspend Colin Beattie – along with Peter Murrell and Nicola Sturgeon.”
Mr Yousaf said he would speak to Mr Beattie about his current role on Holyrood’s public audit committee.
He said: “I’ll consider that. I’ll have to speak to Colin. Clearly there are pertinent issues around his role.”