It has also emerged that the council’s head of construction Mark Ross, who denies any impropriety, has resigned over ill-health.

The contract at the centre of the council’s investigation was awarded to the Dundee branch of Edmundson Electrical. It is claimed that rival businesses did not have an opportunity to submit a bid for the work, which had been subcontracted by council-owned Dundee Contracts.

Edmundson Electrical is part of the Scotland Excel framework – the network of approved contracts and suppliers for Scottish local authorities.

Roger Drinkwater, head of compliance at Edmundson Electrical, told The Courier: “We are one of eight electrical distributors within the Scotland Excel framework and so far as Edmundson Electrical is aware, we have fully complied with the confidential contractual arrangements between the company and Dundee City Council.”

Kevin Keenan, who convenes Dundee City Council’s scrutiny committee, said council officers must now investigate – and pass appropriate details to police.

A spokesperson for Dundee City Council told Scottish Construction Now: “The council does not comment on individual personnel matters and it would not be appropriate to comment on an ongoing investigation.”