26 March 2012

Mr S. M. Regan Chief Executive By email only: sandra.buchanan@scottishfa.co.uk

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SMR/SB RMN/262563-00001 r.macneice a!hf"r#!.c".u$

011% 321 &0%1 011% 321 &021

'ear Sir rai! "hyte (e refer t" )"ur *etter #ate# 1+ March 2012 a##re!!e# t" Mr ,ernan#e!. -*ea!e n"te thi! matter ha! .een tran!ferre# t" Mr Mac Neice an# acc"r#ing*)/ 0*ea!e a##re!! a** future c"rre!0"n#ence t" him. 1n )"ur *etter "f 1& March 2012 )"u a!!ert that the B"ar# "f the Sc"tti!h ,2 i! !ati!fie# that it ha! fu*fi**e# it! ".*igati"n! regar#ing !ervice "f it! *etter "f % March 2012 "n "ur c*ient. 3he B"ar#4! !ati!facti"n mi!!e! the 0"int. 3he S,2 ha! a #ut) t" en!ure 0r"ce#ura* fairne!! in it! #ea*ing!. 3hat #ut) inc*u#e! the re5uirement t" arrange an# a#mini!ter it! interna* 0r"cee#ing! in c"m0*iance 6ith the genera* *a6. Minimum !tan#ar#! "f 0r"ce#ura* 0r"tecti"n t" 0artici0ant! inc*u#e the ".*igati"n t" fu**) an# fair*) inf"rm th"!e !u.7ect t" a c"m0*aint "r #i!ci0*inar) 0r"ce#ure! "f the 0reci!e nature "f the c"m0*aint again!t them an# t" give them a 0r"0er "00"rtunit) t" 0ut their ca!e t" it. 3hat #ut) inc*u#e! the ".*igati"n t" inf"rm the !u.7ect "f a c"m0*aint "f the matter! that are t" .e c"n!i#ere# inc*u#ing the evi#ence "n 6hich the g"verning ."#) re*ie!. 1n re!0ect "f thi! matter/ the S,2 t" #ate ha! 6h"**) fai*e# t" c"n#uct it!e*f in a manner that #i!charge! it! #ut) t" act fair*) an# in acc"r#ance 6ith the genera* *a6. B) 6a) "f i**u!trati"n #e!0ite c"rre!0"n#ing 6ith "ther! "n thi! matter !ince a00arent*) 8ct".er *a!t )ear )"u ch"!e "n*) t" c"rre!0"n# #irect*) 6ith "ur c*ient .) )"ur *etter "f + March 2012 f"**"6ing the S,2 B"ar#4! #eci!i"n that "ur c*ient 6a! n"t a fit an# 0r"0er 0er!"n .) reference t" the term! "f 2rtic*e 10. 1n that *etter )"u inf"rme# "ur c*ient "f the f"**"6ing91. 2. 3hat the S,2 ha# n"t receive# a !u.!tantive re!0"n!e fr"m either Ranger! ,C "r that C*u.4! f"rmer *a6)er! t" c"rre!0"n#ence !ent t" th"!e 0artie! .) the S,2. 3hat f"**"6ing Ranger! ,C entering int" a#mini!trati"n the S,2 ha# e!ta.*i!he# 6hat )"u refer t" a! an 1n#e0en#ent C"mmittee t" : determine whether or not ;"ur c*ient 6a!<

a fit and proper person to hold a position within Association Football in accordance with article 10 of the Scottish FA's Articles of Association:. 3. =. 3hat the 1n#e0en#ent C"mmittee ha# 0u.*i!he# a re0"rt 6hich ha# .een c"n!i#ere# : in detail: .) the B"ar# "f the S,2 at their meeting he*# "n & March 2012. 3hat the 1n#e0en#ent C"mmittee4! Re0"rt in#icate# the C"mmittee4! "0ini"n that there 6a! 6hat )"u term 0rima facie evi#ence that "ur c*ient 6a! n"t a fit an# 0r"0er 0er!"n 6ithin the meaning "f 2rtic*e 10.2. 3hat the C"mmittee #i# n"t 6i!h t" ma$e a #eterminati"n "n the i!!ue an# c"n!i#ere# that a #eterminati"n !h"u*# .e ma#e .) the Sc"tti!h ,2 B"ar# "n*) after 6hat )"u #e!cri.e a! :due process:.

5.

8n the .a!i! "f that chr"n"*"g) 6e ma$e the f"**"6ing c"mment!91. >"u have e*ecte# t" c"n#uct thi! inve!tigati"n 6ith"ut an) reference t" "ur c*ient n"r #i# )"u invite "ur c*ient t" c"mment "r t" a!!i!t )"u in N"vem.er "r 'ecem.er *a!t )ear. 3hat i! #e!0ite the fact that f"**"6ing the BBC4! tran!mi!!i"n "f a te*evi!i"n 0r"gramme/ that 6e un#er!tan# 0r"m0te# )"ur inve!tigati"n/ )"u an# Mr Cam0.e** 8gi*vie atten#e# a 0rivate #inner 6ith "ur c*ient an# 2*i Ru!!e** #uring 6hich matter! re*ating t" Ranger! ,C 6ere #i!cu!!e# inc*u#ing the financia* #ifficu*tie! .eing ex0erience# .) the C*u.. (e are in!tructe# that #uring the #inner )"u t"*# Mr (h)te he ha# .een "0en 6ith the S,2 an# )"u ex0re!!e# )"ur a00reciati"n "f that "0enne!! te**ing "ur c*ient that the S,2 6a! there t" he*0. 1n re!0ect "f Mr (h)te4! #irect"r #i!5ua*ificati"n/ )"u in#icate# t" Mr (h)te that the i!!ue 6"u*# n"t 0revent "ur c*ient fr"m remaining inv"*ve# 6ith Ranger! ,C. 8ur c*ient !0ecifica**) reca**! that )"u in#icate# t" him that he !h"u*# n"t 6"rr) a."ut hi! 0revi"u! #i!5ua*ificati"n a! a #irect"r. ?iven the!e matter! 6e c"n!i#er that )"u have fai*e# t" 0r"0er*) !e0arate the inve!tigat"r) functi"n int" thi! matter fr"m 6hat )"u 0ur0"rt t" .e the B"ar#4! r"*e in ma$ing a fina* #eterminati"n n"t *ea!t in circum!tance! 6here it 6"u*# a00ear that t6" mem.er! "f the B"ar# #i!cu!!e# thi! matter 6ith "ur c*ient #uring a 0rivate #inner an# 6"u*# .e *i$e*) t" .e ca**e# a! 6itne!!e! in circum!tance! 6ere Mr (h)te t" .e given an "00"rtunit) "f 0utting hi! ca!e at a hearing. 3hat i! 0articu*ar*) the ca!e given that 6hat 6e are in!tructe# 6a! !ai# .) )"u at that #inner a00ear! t" #irect*) c"ntra#ict )"ur !tatement t" the 0re!! "n "r a."ut & March 2012 6hich 6e refer t" *ater in thi! *etter. >"u refer in )"ur *etter "f + March 2012 t" the re5uirement that a #eterminati"n "f the matter .e ma#e "n*) after :#ue 0r"ce!!:. 8n an) .a!i! the S,2 ha! fai*e# t" f"**"6 even .a!ic "r minimum !tan#ar#! "f 0r"ce#ura* 0r"tecti"n in re!0ect "f "ur c*ient. 1n!tea# the S,2 ha! 0ur0"rte# t" c"mmi!!i"n an 1n#e0en#ent C"mmittee4! Re0"rt/ the c"ntent "f 6hich/ it ha! #etermine#/ it 6i** $ee0 !ecret fr"m "ur c*ient. 1n circum!tance! 6here the S,2 B"ar# ha! refu!e# t" #i!c*"!e the c"ntent "f that Re0"rt/ the evi#ence "n 6hich the C"mmittee re*ie# "r even the term! "f reference un#er 6hich the

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C"mmittee "0erate# the a#mi!!i"n in )"ur *etter "f 1+ March that evi#ence 6a! 0re!ente# t" the C"mmittee cau!e! "ur c*ient ver) c"n!i#era.*e c"ncern. -*ea!e 0r"vi#e a c*ear 6ritten ex0*anati"n a! t" 6h" gave evi#ence .ef"re "r t" the C"mmittee/ the nature "f that evi#ence an# c"0ie! "f a** #"cument! an# "ther materia* #i!c*"!e# t" the C"mmittee. 5. 1n the!e circum!tance! the S,2 B"ar# ha! #enie# "ur c*ient the "00"rtunit) "f un#er!tan#ing the ca!e that he ha! t" meet/ ha! refu!e# t" 0r"vi#e him 6ith the evi#ence "n 6hich the S,2 B"ar# re*ie! in a!!erting that "ur c*ient i! n"t a fit an# 0r"0er 0er!"n 6ithin the meaning "f 2rtic*e 10.2 an# ha! in!tea# ch"!en t" 0u.*i!h it4! fin#ing that "ur c*ient i! n"t a fit an# 0r"0er 0er!"n in circum!tance! 6here he ha! .een aff"r#e# n" "00"rtunit) "f an!6ering the ca!e again!t him. 3he reference in the thir# 0aragra0h "f )"ur *etter "f + March 2012/ that the 1n#e0en#ent C"mmittee :was of the opinion that there is prima facie evidence that you are not a fit and proper person : !ugge!t! that the matter ha! .een 0re-#etermine#. 3hat c"ncern i! c"nfirme# 6hen )"ur !tatement 0u.*i!he# "n & March 2012 at 666.te*egra0h.c".u$ :Craig Whyte is not a fit and proper person to own Rangers says Scottish FA i! c"n!i#ere#. 3hat artic*e referre# !0ecifica**) t" a !tatement i!!ue# .) )"u 6hich !tate#/ am"ng!t "ther thing!9:!rincipally it is the belief of the "oard ta#ing into account the prima facie evidence presented today$ that %r Craig Whyte is not considered to be a fit and proper person to hold a position within association football:. %. 3hat !tatement i!!ue# .) )"u entire*) un#ermine! 6hat )"u !ai# in )"ur *etter "f + March an# !erve! a! c*ear evi#ence that the S,2 B"ar# ha# in fact a*rea#) ma#e a #eterminati"n "n thi! i!!ue at the time )"u 6r"te that *etter 6hich i! entire*) at "##! an# c"ntra#ict! )"ur a00r"ach at the 0rivate #inner 6ith "ur c*ient *ate *a!t )ear. 1t a*!" c"ntra#ict! 6hat )"u !a) in )"ur *etter "f 1+ March 2012/ that the B"ar# 6i** c"n!i#er thi! i!!ue "n 5 20ri* 2012. 1n fact the B"ar#/ a! evi#ence# .) )"ur "6n !tatement/ ha# a*rea#) c"n!i#ere# thi! i!!ue/ ma#e a #eterminati"n "n it an# 0u.*i!he# a !tatement !etting "ut the re!u*t "f that #eterminati"n.

6.

Next Ste0! ,"r the av"i#ance "f #"u.t/ "ur c*ient 6i!he! t" .e aff"r#e# the "00"rtunit) "f an!6ering the a**egati"n! 6hich a00ear t" have .een ma#e again!t him in the 1n#e0en#ent C"mmittee4! Re0"rt 6hich the S,2 B"ar# ha! !" far refu!e# t" #i!c*"!e t" him. 1n th"!e circum!tance! 6e re5uire imme#iate #i!c*"!ure "f the f"**"6ing9 1. 2. 3. 2n entire c"0) "f the 1n#e0en#ent C"mmittee4! Re0"rt inc*u#ing the C"mmittee4! term! "f reference/ 'etai*! "f the i#entit) "f th"!e 6h" gave evi#ence .ef"re the C"mmittee an# the nature an# c"ntent "f their evi#ence C"0ie! "f a** !tatement!/ re0"rt! an# "ther materia* 0*ace# .ef"re the C"mmittee/

(hen re0*)ing 6e re5uire the a!!urance "f the S,2 B"ar# that c"n#uct "f the inve!tigati"n an# 0r"gre!! "f thi! matter m"ving f"r6ar# 6i** .e un#erta$en .) an in#ivi#ua* at the S,2 6h" 6i** n"t f"rm 0art "f a #etermining 0ane* n"r .e an in#ivi#ua* 6h" i! *i$e*) t" .e ca**e# a! a 6itne!! t" give evi#ence "n an) i!!ue! ari!ing fr"m thi! matter. 8nce 6e have .een 0r"vi#e# 6ith fu** an# 0r"0er #i!c*"!ure "f the S,24! ca!e again!t "ur c*ient "ur c*ient 6i** .e in a 0"!iti"n t" re!0"n# !u.!tantive*) t" that ca!e. ,"r the av"i#ance "f #"u.t the num.ere# 0aragra0h! in )"ur *etter "f + March #" n"t #i!c*"!e a 5ue!ti"n "r *ine "f en5uir) that )"u 6i!h "ur c*ient t" a##re!! an# are im0reci!e an# unc*ear in term! "f 6hat 6ritten !u.mi!!i"n! the B"ar# i! ex0ecting "ur c*ient t" ma$e. >"u are effective*) ma$ing "ur c*ient re!0"n# t" th"!e num.ere# 0aragra0h! in i!"*ati"n "f an) #i!c*"!ure "f the ca!e that "ur c*ient ha! t" meet in the f"rm "f the 1n#e0en#ent C"mmittee4! Re0"rt "r the evi#ence "n 6hich the C"mmittee re*ie# 6hen 6riting it4! re0"rt. 3hat i! "n an) .a!i! 0r"ce#ura**) unfair t" "ur c*ient an# i! 0re7u#ica* t" hi! right an# the S,24! ".*igati"n t" 0r"vi#e a fair ;)"u #e!cri.e it a! #ue< 0r"ce!!. 1n an) event there i! *i$e*) t" .e c"n!i#era.*e cr"!!-"ver .et6een thi! matter an# the a**egati"n! ma#e .) the S,2 an# c"ntaine# in it! N"tice "f C"m0*aint again!t "ur c*ient. 1n re!0ect "f that N"tice "f C"m0*aint 6e have 6ritten t" the S,2 t"#a) an# have/ am"ng!t "ther matter!/ in#icate# that ."th )"u an# Mr 8gi*vie are t" .e 0ut "n n"tice that )"u ma) .e re5uire# t" atten# the hearing "f the matter "f the N"tice "f C"m0*aint t" give evi#ence. 1t i!/ in a** "f the circum!tance!/ a00r"0riate that the #eterminati"n "f 6hether "r n"t "ur c*ient i! a fit a 0r"0er 0er!"n 6ithin the meaning "f 2rtic*e 10.2 .e #ea*t 6ith in c"n7uncti"n 6ith the hearing "f the N"tice "f C"m0*aint in "r#er that evi#ence fr"m that hearing can .e avai*a.*e t" ."th 0artie! in re!0ect "f the fit an# 0r"0er #eterminati"n. >"ur! faithfu**)

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