A SCOTTISH Tory MEP at the centre of an expenses probe has been cleared by the European parliamentary authorities.

John Purvis, under investigation for ploughing thousands of pounds of taxpayers' money into a firm of which he was a partner, has been told that "no material conflict of interest" arose from his financial affairs.

However, the 70-year-old Conservative politician has since withdrawn from the partnership and stopped paying public money into the firm.

MEPs in the UK have run into trouble recently following scrutiny of travel and staffing expenses. The biggest controversy has been the practice of MEPs channelling taxpayers' money into firms in which they have a financial stake.

Purvis, who is not seeking re-election next year, paid up to £120,000 in the past 12 months to a "service provider" named Purvis & Company, his own firm. The company's headquarters is listed as his country estate, Gilmerton House, near St Andrews.

An internal probe into Purvis's arrangements has cleared the MEP of presiding over a conflict of interest.

A letter from the European Parliament's secretary-general, Harald Romer, states: "I am satisfied that no material conflict of interest arose and that the use of the money received for your parliamentary assistance was fully justified by the documents you have presented."

His letter also stated that Purvis has "withdrawn completely" from the partnership and is now using an independent paying agent for handling staff.

Speaking to the Sunday Herald, Fernando Suarez, who works in the office of the secretary-general, said: "John Purvis was in a potential risk situation, but he has never benefited from the payments. Everything was dedicated towards the purposes of the allowances."

Asked if he believed all MEPs should avoid giving taxpayers' money to firms of which they were part, he said: "Absolutely."

Purvis said in a statement: "Some weeks ago, the European Parliament authorities queried the status of Purvis & Company, as paying agent for my parliamentary staff, following which various unsubstantiated allegations appeared in the press.

"I immediately supplied the Parliament with all the documentation requested, and the Secretary-General has now formally acknowledged that all the secretarial allowances were exclusively applied to the provision of parliamentary assistance and that not a single euro has gone to the personal benefit of myself or my family."

A spokesman for the Taxpayers' Alliance said: "It will concern a lot of people that, after such serious facts have been revealed, the European Parliament officials appear to be dropping the matter. People are rightly worried about how their taxes are spent in Brussels, and that means the rules need to be tightened."