By Steve Bargeton, political editor

SCOTTISH LABOUR leader Wendy Alexander will not face prosecution for failing to register donations to her leadership campaign.

Last month the Scottish Parliament’s standards watchdog Dr Jim Dyer sent a report to the Lothian and Borders procurator fiscal on Ms Alexander’s failure to record gifts to her leadership campaign in the MSPs’ register of interests.

Ms Alexander has said parliament officials wrongly told her it was unnecessary to declare the donations.

Yesterday a spokesman for the Crown Office said, “After very full and careful consideration of the report from the Scottish Parliamentary standards commissioner, Crown counsel has concluded that a prosecution would not be appropriate in the full circumstances of the case.”

The fact Ms Alexander had sought the advice of the clerk to the standards committee has been taken into account.

The Crown Office spokesman also said the issues raised in the case might be more appropriately dealt with by Holyrood’s standards committee.

A spokesman for Ms Alexander said she welcomed the decision.

“The Crown Office has found that not only would a prosecution not be in the public interest but it would not be appropriate as Ms Alexander has made clear all along she took written advice from the standards clerk and made a voluntary disclosure to the Electoral Commission,” he said.

Ms Alexander has also been investigated by the Electoral Commission which carried out an investigation into a £950 donation made to Ms Alexander’s campaign by Jersey-based businessman Paul Green.

Although the donation was illegal because donations above £200 must come from UK voters, the commission took no action.

Last night Perth MSP Roseanna Cunningham said, “This decision will surprise no one.

“The Standards Commissioner must now finish his report and the Parliament’s standards committee will, as the Crown says, have to make its own decisions on Wendy Alexander’s actions.

“The fiscal may have cleared Wendy but Scottish Labour is still withholding judgment.”

Scottish Tory deputy leader Murdo Fraser said, “This decision from the Crown Office is entirely to be expected after the Electoral Commission decided not to report the matter to the police.

“Of course this is the least of Wendy Alexander’s worries, as she has completely failed to make any progress as Labour leader since taking on the position last summer.”