Ilford South MP Mike Gapes accused transport commissioner Bob Kiley of bringing in former colleagues from the US to replace experienced British staff.
The MP claimed London mayor Ken Livingstone, who chairs TfL, had a pact with Mr Kiley to leave the running in his hands, in return for political support against the public/private partnership being planned to run the Tube.
Mr Gapes said the organisation's headquarters had been 'colonised' by about 20 American consultants, who can earn up to£1,000 a day.
'We have a real problem if we have an organisation that has been created and run by an abrasive, autocratic and aloof group, which appears to believe all British employees who were there before they arrived are not to be trusted.'
The MP claimed there is a culture of fear within TfL and at least 10 British senior managers earning£70,000 and above had been asked to leave.
Mr Gapes told MPs they appear to have signed gagging orders in return for 'substantial' pay-offs. There was now no one left in the organisation with senior management experience of London Underground.
He said it was time to bring in the District Auditor and the Audit Commission to look at the allegations against TfL.