The four men arrested as part of the investigation into the former partnership between One Connect and Lancashire County Council have been released on bail.
Lancashire Police confirmed that the men have been bailedĀ until June 19.
The arrests were made on Monday, May 22.
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.
More: Four arrests made in One Connect and Lancashire County Council investigation
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.
The investigation into the award of a contract to One Connect has been going on since 2013.