Four men including Liverpool City Council chief executive Ged Fitzgerald have been arrested as part of an investigation into alleged financial irregularities in the tendering of council contracts to BT.

The men – aged 72, 55, 58 and 56 - were arrested this morning at addresses in Preston and Merseyside on suspicion of conspiracy to pervert the course of justice and witness intimidation.

Lancashire Constabulary has been investigating the now-defunct Liverpool Direct Ltd partnership between the city council and BT.

The probe was launched after police were called in four years ago to look at Lancashire CC’s One Connect joint venture with BT.

A Lancashire police spokesman said: ‘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. They will be interviewed during the course of the day.’

Liverpool and Lancashire councils both declined to comment.