THE Labour Party stalwart heading Scotland's largest public transport quango has been sacked from his post amid renewed concerns over the running of the organisation.

Jim Coleman, chairman of Strathclyde Partnership for Transport (SPT), has become the highest-profile casualty of the Labour's reshuffle as it puts in place its team to retain control of Glasgow City Council in 2017.

Mr Coleman, a former long-term deputy leader of the city council, will lose the £20,000-plus he is paid a year on top of his councillor's salary for overseeing SPT.

The organisation, which runs the Glasgow Subway and funds bus services, was dogged in an expenses and trips scandal over five years ago but has sparked concerns it has again become a political liability for Glasgow's Labour administration.

Last month it was accused of "sleight of hand" after it emerged that its directors billed taxpayers for almost £50,000 in travel, hotel and entertainment costs, including first class flights and £400 dinners, which never appeared among their published expenses despite its "commitment to openness and transparency".

The Herald: Jim Coleman backs the scheme

There is no suggestion of any wrong-doing on Mr Coleman's part but senior sources said it needed a new broom within SPT, claiming a malaise had set in regarding oversight of the organisation.

Jonathan Findlay, the Labour councillor credited with detoxifying SPT after the 2010 scandal, returns to the lucrative post.

A source said: "Jon steadied the ship in 2010. Now his job is to go in and reform the place. All the headlines are back."

Elsewhere, the chief whip of the Labour administration who was new leader Frank McAveety's first casualty, is given the chair of the City Building, the council-owned construction firm.

James Adams takes the post at arguably the most challenging time in the arms-length body's decade-long history. The Herald revealed recently that around half its staff could transfer to housing provider Glasgow Housing Association to ward off the threat of the potential loss of around 1000 jobs.

Ironically the biggest threat to City Building, which is cherished by Labour for the apprenticeships it provides, comes from the firm run by the husband of Glasgow Lord Provost Sadie Docherty which is expected to bid for contracts the council-owned body currently operates.

Earlier this week, Mr McAveety unveiled his top team, two months after he was elected as successor to Gordon Matheson.

The Herald: City council leader Frank McAveetyHe said: "This is a new beginning and new team with new ideas. We want to win back the support of the people of this city for Labour by making a real difference to their lives and by making their lives better."

But Susan Aitken, leader of the opposition SNP group, said a major reform at SPT rather than personnel change was required at SPT.

She said: "This looks like just another stage in the SPT  merrygoround as it lurches from one crisis to another. Cllr Findlay did a decent job before but just changing personnel isn't enough."

She added: "James Adams was sacked as business manager as Frank said he didn't trust him. He seems a strange choice then to head an organisation like City Building facing the challenges it is."

Other casualties include Stephen Curran, who threw his hat in the ring for leader but withdrew from the race soon after. The former education convenor has been given no major role in the new team.

Hanif Raja, a close ally of the Sarwar dynasty, has been given the council's public petitions committee.