THE SNP councillor at the centre of the McMafia racism scandal that exposed bitter divisions in the party in North Lanarkshire has been reinstated.

Julie McAnulty was suspended by the party in February, after an activist accused the councillor of using racist language.

Sheena McCulloch alleged that McAnulty had said “Pakis” were causing problems in the SNP’s local branches. McAnulty denies making the comments, with supporters saying she was being smeared by rival factions in the party in an attempt to damage the councillor’s reputation and to intimidate her.

The SNP told McAnulty yesterday that her suspension had been lifted, effectively exonerating her.

McAnulty’s suspension meant she had to stand down as a candidate in May’s election to the Scottish Parliament. McAnulty recently started legal proceedings against McCulloch, seeking more than £100,000 in damages. Last night, the councillor would only tell the National that she was relieved the suspension had been lifted.

It’s the latest development in the so-called “Monkland’s McMafia” turf war, which has pitted an old guard associated with former minister Alex Neil and Richard Lyle, the MSP for Uddingston and Bellshill, against new members who have rallied around Phil Boswell, the MP for Coatbridge, Chryston and Bellshill.

McAnulty previously worked for Boswell, while McCulloch works for Lyle. Neil was reportedly forced out of the cabinet after May’s election, and told to sort out the mess.

McCulloch’s complaint to HQ read: “Julie was asking me about the trouble and in-fighting in the Bellshill branch and asked for my view on the trouble in Coatbridge. During this discussion Julie made a comment which I found to be unacceptable.

“She asked if I agreed with her that it was, in her words, the ‘Pakis’ that were causing the problems locally and that we needed to get rid of them out of the party.

“I outlined immediately that I was not happy with her comment as I know and respect many Muslim members locally.”

The party placed McAnulty on administrative suspension almost immediately.

McCulloch’s complaint to SNP HQ was leaked to the Daily Record.

McAnulty, a music teacher and part-time church organist, has also spoken to Police Scotland’s Counter Corruption Unit about alleged criminality within the SNP.