A youth campaigner has quit Scottish Labour in protest after a councillor who was arrested over alleged embezzlement offences attended a party selection in Glasgow.

David Stewart wrote that he was “disgusted” councillor Yvonne Kucuk - currently suspended by Labour - was at last week’s meeting to pick candidates for next year’s local authority elections.

He posted on Facebook: “A moral line has been crossed.”

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Ms Kucuk was elected for Labour in Glasgow in 2012 to serve the impoverished Calton ward in the east end.

She also held a senior post at the lottery-funded Dalmarnock Legacy Hub, a multi-million project designed to serve as part of a Commonwealth Games legacy.

However, as reported in the Herald earlier this year, Ms Kucuk was arrested following a complaint to the police.

A Police Scotland spokesman said at the time: “On Thursday 12 May 2016, a 54 year-old man and a 49 year-old woman were arrested in connection with alleged offences relating to breach of trust and embezzlement.”

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Hours later, a spokesperson for the Crown Office said: “The accused was liberated from custody and did not appear in court. The case against her remains live and under consideration.”

A spokesperson for Labour said at the time that Ms Kucuk was suspended from the party “pending the outcome of her case.”

However, a row has now broken out over her appearance at a meeting to select Labour council candidates for Calton.

Thomas Rannachan, who contested Glasgow Shettleston for Labour at the Holyrood election, and Cecilia O’Lone, were selected.

Mr Stewart, who used to serve on the board of the trust behind the Dalmarnock Legacy Hub and is listed as the founder of a youth enterprise hub in Dennistoun, posted his resignation statement on social media:

"Over the years I have had my differences with the Labour Party, locally and nationally, however I have always strived to build consensus from within the movement, however a moral line has been crossed.

“I was disgusted to discover a suspended Councillor….was allowed to participate in the democratic processes of my local Calton Branch."

Labour rules allow a suspended member to attend meetings of local branch meetings.

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A Scottish Labour spokesman said: "Party rules state that Ms Kucuk is not entitled to attend Labour group meetings or to represent the group in any capacity. She cannot attend any party meetings other than her local Labour Party Branch, and cannot be considered for selection as a candidate to represent the Labour Party at an election at any level."

A Crown Office spokesperson said the case remains live.

Ms Kucuk did not respond to this newspaper’s email.