A Scottish Labour veteran has declared “I am not corrupt” after the council he led for nearly two decades launched a probe into multi-million-pound deals signed on his watch.

Jim McCabe, ousted in a coup earlier this year, has denied any wrongdoing during his 18-year reign in charge of North Lanarkshire Council.

However, The Herald can reveal that the 75-year-old is among a number of officials and politicians named in a whistleblowing report that sparked a full-scale investigation into procurement processes at the authority yesterday.

Reacting to the probe, Mr McCabe said: “Under no circumstances am I corrupt and I have never been corrupt. No way.”

Mr McCabe’s successor, John Logue, ordered the investigation and called the police after he and The Herald received the whistleblowing report this week.

Not naming Mr McCabe, Mr Logue said: “These allegations, which are detailed, concern some of the council’s procurement processes. If true, they are extremely serious.

“I immediately instructed Paul Jukes, the chief executive, to launch an investigation.

“That investigation, led by the council’s internal audit team, is already under way.

“Should the auditors find anything which substantiates these allegations that evidence will immediately be handed over to Police Scotland.”

The detailed whistleblowing report, which is anonymous, highlights several public contracts running well into the millions of pounds. Mr McCabe stressed that as council leader he did not have absolute control over procurement.

He said: “You have always got concerns about procurement. But there is no way that any one councillor would have access to all decisions. We only get the final recommendations over who gets the contract. Procurement is for the procurement department.”

Asked if he believed there was corruption in the council, Mr McCabe said: “I don’t believe it to be the case. But the investigations will show that. If individuals come to light, they will be dealt with.”

North Lanarkshire’s two main parties – Labour and the SNP – have been riven by factional infighting for months with claims and counter-claims of wrongdoing now routine.

As The Herald revealed last week, Mr McCabe was one of a number of Labour councillors to formally complain to their party’s headquarters about Mr Logue, his deputy Paul Kelly and the rest of his new administration.

Asked if the whistleblowing allegations could be politically motivated, Mr McCabe said: “Well, it could be politics.It is not a happy place to be in right now, North Lanarkshire.”

He added: “I pride myself that I am 76 next week and have worked all my life.

“I am in the position that I have never had any unnecessary debts or anything else like that. I have never had any need to be corrupt and I never was corrupt.”

A source within the new administration in North Lanarkshire stressed that they were eager to hear from more whistleblowers. The source said: “There was a great deal of animosity towards Jim Logue and Paul Kelly becoming the new leadership team by certain individuals.

“This was because people knew they would be very pro-active in dealing with any serious allegations regarding North Lanarkshire Council and no stone would be left unturned.

“Staff are no longer afraid to come forward with concerns.

“This is not just a Labour issue, it clearly involves the SNP as well.”

Officials expect to see more mudslinging in the region as the two main parties continue their parallel civil wars. “This is North Lanarkshire,” said one source.

“We have a lot of allegators. And they like to allege. But on this occasion, given the gravity of the allegations made, it would have been impossible for the council not to act and to be seen to act.”

The Herald understands police have been offering help and support to council officials as they look in to allegations made by any whistleblowers.

A Police Spokesman said: “North Lanarkshire Council has made Police Scotland aware of the allegations and this matter will be reviewed.”