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The former first minister spoke to reporters in the Scottish Parliament for the first time since former SNP chief executive Peter Murrell was questioned on April 5.
“I understand the views some people may have, and I know this is about to unfold, and that’s why I’m walking away,” she said.
“Nothing could be far from the truth. In my worst nightmare, I couldn’t have predicted what was going to happen in the past few weeks.”
She added: “Obviously, what has happened over the past few weeks has been difficult and – and I use the word cautiously – very painful in some respects. But I acknowledge that is the nature of the process that is going on.”
The party’s former treasurer, Colin Beattie, who was also arrested and released in the same police investigation, said he was unaware the party had bought a £100,000 caravan, sparking speculation about the purchase of new problems.
As part of the investigation, Police Scotland are believed to have seized a Niesmann + Bischoff camper van bought by the party but apparently never used.
Mr Beattie, who resigned as treasurer after being acquitted pending further inquiries, was asked if he knew about the takeover. “No—I don’t know about it.”
Both the Scottish Conservatives and Scottish Labor have described it as a “bombshell” – asking how it is possible that the treasurer was unaware of such a large purchase.
Chris Hoy, chairman of the Scottish Conservative Party, said: “This causal admission of Colin Beatty is what beggars believe.
The senior Tory slammed the “ambiguity” of the SNP’s finances, saying: “How can a treasurer now claim he never knew when the account for this six-figure purchase was signed off?”
Labour’s deputy, Jackie Baillie, said: “This is yet another bombshell revealing the chaos at the heart of the SNP. It’s unbelievable that the party’s treasurer didn’t know more than £100,000 was spent on a caravan.”
Mr Beatty also denied the SNP was in financial trouble, insisting: “The SNP is profitable.”
Speaking at an Institute of Government event in London later on Tuesday, the SNP’s Westminster leader, Stephen Flynn, was asked about the caravan issue. He said he only learned about the purchase when it was “on the front page of the newspaper”.
Humza Yousaf has said he was unaware that the SNP had bought the car before he became party leader.
Ms Sturgeon said it was “frustrating” not to be able to reveal her side of the SNP financial story after reports police detectives were looking for used sim cards, and said she had not been questioned by police, There has also never been a “disposable phone” in a disposable cell phone.
Mr Beattie said the SNP’s difficulty in finding auditors to check its accounts by the May deadline was due to “market conditions”.
Asked whether he should be suspended by the SNP, he did not comment but said he had “no plans at this time” to resign from the Holyrood economy and fair work commission, adding that he believed he was a “right fit” “Serve it.
MSP was also asked if his arrest was the worst thing that happened to him. He replied: “No, I was actually under fire when I was in Beirut – that was worse.”
If the SNP’s Westminster Group fails to lodge its audited accounts by the end of May, it could miss out on £1.2m as part of funding to the opposition.
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