A council stalwart has survived a motion of no confidence after he failed to declare his friendship with multi-million-pound contractors.
Labour's Jim McCabe - one of the giants of Scottish local government - saw off an SNP bid to oust him as North Lanarkshire leader over his relationship with senior executives at Mears Scotland.
Mr McCabe's administration has been in negotiations with the company for months over its £30m-a-year housing repairs contract.
The leader backs plans to allow Mears to forgo millions in savings, effectively passing its current level of losses on to tenants.
However, he has not declared an interest in the issue despite telling The Herald he is a friend of two senior officials at Mears, including its head, Willie Docherty, the husband of Glasgow's Labour Lord Provost.
The issue came to a head on Thursday when the council's ruling policy and resources committee was effectively asked to approve a bail-out for Mears Scotland, in which the local authority has a one-third stake.
Mr McCabe again did not declare an interest. The SNP's David Baird immediately called a motion of no confidence, which was defeated by 10-6
SNP group leader David Stocks said: "Given the huge controversy over the cost to council tenants of the contract revision, it seems unusual for the council leader not to at least formally declare his friendship with top figures in Mears prior to the committee's discussions."
Mr Stocks backed proposed revisions to the Mears contract but only the council backed a full investigation by public finance watchdog Audit Scotland. Labour declined to support that call.
Mr Stocks said: "The SNP is deeply concerned about this financially costly revision,which will have to be borne by hard-pressed tenants.
"Unfortunately, to walk away from Mears would cost 600 jobs and 100 apprenticeships, plus new contract re-negotiation costs.
"However,lessons have to be learnt and an independent inquiry by Audit Scotland is the only way to satisfy the deep public concerns over this whole affair."
Multinational Mears bought the contract with North Lanarkshire - and what became the Mears Scotland joint venture - from another firm, Morrisons, in 2012.
SNP councillor Paul Welsh said: "Mears clearly knew they were buying up loss-making contracts and were happy to do so from their commercial rivals."
Mr McCabe has said he believed that Mears had been reluctant to buy the North Lanarkshire deal but had to do so because it was part of a package.
He blamed the firm's losses on low fees for repairs and the efficiency savings stipulated in the early contract. Those savings have now been amended to Mears benefit.
Mr McCabe said: "The SNP moved a motion of no confidence in me which was comfortably defeated.
"The recommendations in relation to the Mears contract were unanimously passed by the committee and my focus is now on ensuring we continue to deliver an outstanding €Å½repairs service to our tenants."
The Mears contract revision has sparked controversy within the Labour group - although the party's councillors have voted to support the changes.
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