COUNCIL leader Stephen McCabe today demanded that Yes Inverclyde pay back a £10,000 Covid-19 relief grant after branding their decision to claim the cash as 'morally wrong'.

The Labour councillor hit out at the pro-independence group for claiming business support cash - and criticised his own council officials for approving the application.

A row has broken out over the payment of the grant and a full investigation has been launched at the Municipal Buildings after allegations of fraud were made.

It is understood an original application was rejected and Yes Inverclyde then reapplied on the grounds claiming they were a 'philosophical' movement rather than a political one.

The founder of Yes Inverclyde, local MP Ronnie Cowan, which has premises on Newton Street at West Station, has distanced himself from the row.

Councillor McCabe said: "Council officers have, in my opinion, made an error of judgement in making this payment.

"I would call on Yes Inverclyde to immediately repay the grant, and for the leaders of the two pro-independence groups on the council to join me in making that call.”

"It will be for the investigation to determine if there has been fraud or not.

"It is certainly morally wrong and the grant should be repaid immediately.

"Yes Inverclyde is a political group run by SNP activists.

"It should not have claimed a business support grant.

"It is my firm view that Yes Inverclyde is a political organisation set up solely to promote the cause of Scottish independence, as is their democratic right.

"They should however not be subsidised by the UK taxpayer, as the ultimate source of this funding was additional Covid funding provided to the Scottish Government by the UK Government."

MP Mr Cowan has recently actively supported Yes Inverclyde on social media as they step up campaigning.

Activists recently used the premises to store 35,000 'Yes papers' produced by the SNP, The National newspaper and the Believe in Scotland campaign group, with the MP posting a picture on Twitter of them stacked up in the base, voicing his support for the drive.

But when we approached Mr Cowan's office and asked about the public grant claimed by the group, his spokesman said: "This is a matter between Inverclyde Council and Yes Inverclyde.

"Mr Cowan has no involvement in the running of the organisation."

Inverclyde Council confirmed that they have launched an investigation.

A spokesman for the local authority said: "Coronavirus grants are subject to audit and fraud allegations will be investigated.

"The matter has now been referred to our corporate fraud service to review."

The Tele also contacted Yes Inverclyde and SNP council group leader Cllr Elizabeth Robertson to ask for a comment - neither responded.