Four men have been arrested as an investigation into the former partnership between One Connect and Lancashire County Council continues.
It is understood one of the men is the current leader of the Preston Conservative group on the county council, and the man likely to be sworn in as the next leader of the county council, Geoff Driver.
Mr Driver was re-elected as county councillor for Preston North in the May elections, where his party won an overall majority in the county.
He is one of four men arrested at addresses in Preston and Merseyside during Monday (22 May) as part of Operation Sheridan.
A statement from Lancashire Police said: “Four men have been arrested this morning (Monday, May 22nd) in connection with an investigation into conspiracy to pervert the course of justice.
“The men, aged 72, 55, 58 and 56, were arrested at addresses in Preston and Merseyside.
“The arrests are part of a wider long-running investigation into allegations of fraud, although none of the men have been arrested today on suspicion of fraud.
“All of the men have been arrested on suspicion of conspiracy to pervert the course of justice and witness intimidation.”
The investigation into the award of a contract to One Connect has been going on since 2013.