David Simpson, Network Rail's route managing director for Scotland, has been sacked amid allegations he favoured a female friend by promoting her to a senior role for the Commonwealth Games.
The scandal centres on claims that Simpson failed to follow proper procedures when appointing Anne-Marie Harmon to oversee transport for the event. Both were placed on extended leave last month while the matter was investigated.
Network Rail confirmed on Tuesday that Simpson, 48, had left the company with immediate effect. Harmon, however, will be allowed to return to her position.
Simpson and his wife Noreen, who live in Ayr, have declined to comment. Harmon, from Larkhall, Lanarkshire, told reporters to 'go away' when approached.
A rail executive described Simpson's departure as a 'shock' to colleagues.