ALBA staff are facing redundancy after the party lost “hundreds of members” in the space of a week after its leadership announced it would not be fighting the upcoming Holyrood election.
Last week, Alba members were told via email that the party would be deregistered following a meeting of the party’s national executive committee (NEC).
Alba Leader, Kenny MacAskill, said “financial irregularities” impacting the party’s operations were brought to light “financial irregularities” impacting its operations were brought to light.
MacAskill has now updated party members a week after his initial letter where he said “hundreds of members” have cancelled their direct debits with “more anticipated”.
The Alba leader suggested that a “barrage” of press releases, public comments and claims made by “some individuals” within the party were to blame for the hemorrhaging of support.
MacAskill went on to explain that, as a “consequence of the reducing income, declining membership and existing and future liabilities,” the party has started redundancy consultations with its staff.
“Several candidates for the coming election have already intimated their withdrawal, given the behaviour last week with another withdrawing due to a family tragedy.” MacAskill wrote.
(Image: PA)
“Despite protestations of fundraising by some individuals only very limited donations have been received by Party HQ and which will not offset the loss of income lost through a drop in membership.
“Any funds received must be applied first to meeting existing liabilities.
“As a consequence of the reducing income, declining membership and existing and future liabilities we have both moral and statutory obligations towards staff. We have therefore started redundancy consultations.”
The National understands that the party’s 2024 accounts need to be signed off by the auditor before being sent to the Electoral Commission (EC), which will then publish them. The party said this will confirm the “perilous financial situation” they are in.
According to the 2023 financial accounts available on the EC website, Alba had a total income of £418,577 and an expenditure of £499,268 in 2023, the latest available figures.
The party said at the time the expenditure was mainly driven by “campaigns, election costs and staffing costs”.
It added that there was a deficit of £80,691 in 2023, compared to a surplus of £17,425 in 2022.
MacAskill went on to say that Alba “finds itself in an even worse position than it was last week” after draft party accounts, which were yet to be signed off by either the Party Treasurer or the its auditor, were “publicly circulated” by a member and were “entirely false interpretations” made regarding the Party’s financial situation.
He added: “It has resulted in the Party Treasurer, a professional accountant not an elected Party member, and the Auditor, an accountant based in Northern Ireland now considering whether they can sign off the Party accounts without a declaration of them being on a ‘break up basis’.
(Image: Peter Jolly. Northpix)
“That in a business concern would mean facing insolvency. The situation faced by our Party is similar.
“We have liabilities that exceed our income and with little likelihood of that gap being closed.
“Moreover, we have potential claims of a significant scale which may require to be met. This was not the previous position of the Treasurer or Auditor, but last week’s events require them to reconsider. We are meeting with both early next week to discuss.
MacAskill continued: “The Electoral Commission had hoped to return to us this week, but they have also deferred it until next.
“I am therefore unable to give a precise position on the Party’s situation with the Electoral Commission as to whether we will require to de-register or even be able to re-register as a Party which requires to be done by 31st March.”
