A public inquiry into the admitted malicious prosecution of businessmen over the takeover of Rangers in 2012 should be held, according to the Scottish Conservatives.

David Whitehouse and Paul Clark, who worked for restructuring and recovery firm Duff & Phelps, were charged with fraud after the club’s takeover by businessman Craig Whyte almost a decade ago.

After a civil case the Crown Office later admitted Mr Whitehouse and Mr Clark and others had been "prosecuted without evidence" and there had been a “malicious prosecution".

Mr Whitehouse is seeking criminal charges be brought against former Lord Advocate, Frank Mulholland, and Police Scotland and Crown Office staff who brought the charges against him.

More than £21m in compensation is reported to have been paid out to those prosecuted.

Murdo Fraser, Scottish Conservative finance spokesman, met with the men who were prosecuted and has demanded a public inquiry into the case.

Kate Forbes, Scottish Finance Secretary , answered Mr Frasers questions in Holyrood He said the case was an "absolute scandal" and asked if payments of £24m have been made to the individuals and what impact it would have on the Crown Office budget.

Ms Forbes, said: "Arrangements have been made so these settlements won't affect the service.

"The Lord Advocate advised the actions in the Court of Session are still pending and a hearing will call later this week."

Ms Forbes added: "The Lord Advocate will make statement to Parliament at the earliest opportunity and Murdo Fraser will have opportunity to ask questions."

Mr Fraser said: “This was not just a mistake but a sinister abuse of state power that strikes at the very heart of Scotland’s criminal justice system.

“It will end up costing taxpayers tens of millions of pounds yet we have heard no explanation from either the Lord Advocate or the SNP justice secretary.

“Meeting with two of these men and hearing their personal accounts was harrowing and I admire they and their lawyers’ tenacious fight for justice.

“If the Crown had got their way, they would have been jailed, financially ruined and had their reputations destroyed.

“A full public inquiry is absolutely vital to ensure the public see exactly what went wrong and why. Anything short of that would send out the message that lessons have not been learned.”