GLASGOW Housing Association has been forced into a U-turn on a multi-million pound repairs contract.

Amid executive departures and mounting speculation that regime change is afoot, the GHA has reversed its snub to a Glasgow City Council-owned company in favour of a private firm by awarding City Building the lucrative contract.

Connaught, City Building's rivals for the deal, pulled out in April over a last-minute £20million dispute over pensions, with GHA insisting then the contract would be put back out to tender.

It emerged at the weekend that GHA's board has now awarded the five-year contract to City Building, a move seen as an attempted olive branch in a row with the council.

The turnaround comes amid the biggest crisis the GHA has had in its seven years.

Its governance and strategic direction have been criticised by the Scottish Housing Regulator, leading to the loss of two senior managers.

Robert Flanagan, head of finance, left in early July, while on Saturday it was revealed head of strategy Donna Stevenson had also quit.

The City Building issue is core to the breakdown in relations between GHA and the council.

GHA is keen to break links with the authority - which controlled housing in the city until 2003 - while the council sees its arms-length agency as core to delivering apprenticeships.

A GHA spokesman said: "The decision to offer the contract has been taken following advice from procurement experts and legal advisers."

Willie Docherty, City Building managing director, said: "It's great news in terms of sustainability of employment."