Glasgow City Council has rejected a call from SNP councillors that an independent investigation should be held into the practices and recent decisions of the council.
It comes in the wake of the resignation of Steven Purcell as council leader and the revelation that police thought he could be susceptible to blackmail because of his cocaine use.
The call, which also asked for a probe into the relationship between arms-length companies and the Labour party, was defeated by a vote of 48 to 23.
SNP councillor James Dornan said: "We’ve been saying that there are a number of allegations out in the public domain, it’s damaging the reputation of the city of Glasgow and the city council, and it’s important that we get to the bottom of this as soon as possible."
It was also argued that the council’s arms-length city building company had employed a former Labour party official and given money to the party. The chairman of that organisation, however, rejected claims of wrongdoing.
Councillor Gerry Leonard said: "I think it operates tremendously, I think the way it works is correct. We have brought surplus money back into the council from the commercial side of the business."
Acting council leader James Coleman said that if the opposition had any evidence of wrongdoing they should bring it forward or forward it to Audit Scotland or the Strathclyde Police.
A new council leader will be elected in May.