The official was dismissed from Edinburgh City Council after his connection to the company was discovered.
The Scottish Herald reported that his sacking came as the council’s Property Conservation Department was put under investigation by Lothian and Borders Police for alleged corruption.
A total of 18 members of the department and one planning officer have been suspended while the investigation takes place.
The department controls repairs to buildings in Edinburgh and is responsible for £30m worth of contract awards a year.
The allegations centre on the awarding of contracts by council officials to contractors.
The Property Conservation Department issues statutory notices for buildings that need work to make them safe, arranges the job through contractors then recoups the cash from owners.