Mr Ibbs is in charge of the council's �250m secondary school reforms
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A Staffordshire councillor has been arrested on suspicion of corruption in public office.
Roger Ibbs, leader of the Conservative and Independent alliance at Stoke-on-Trent City Council, was arrested on Friday, the council confirmed.
Staffordshire Police said the city council had contacted it in December following an internal council inquiry.
Mr Ibbs, 61, from Stoke-on-Trent, who has been released on bail was unavailable for comment.
A spokesman for Staffordshire Police said: "We have secured the advice of special case lawyers in the Crown Prosecution Service.
"We are pursuing a number of lines of inquiry and as with any investigation we can not discuss the details of the ongoing investigation."
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