Mayor of Liverpool Joe Anderson has announced he will step aside from his position following his arrest last week.
Four other men were also arrested as part of a Merseyside Police probe into building and development contracts in Liverpool.
Following his arrest, the 62-year-old mayor was administratively suspended by the Labour Party.
He remains on police bail while the investigation into him continues.
After several days of silence, Mayor Anderson has announced today that he will be stepping aside from his position while the investigation into him continues.
This means that Deputy Mayor Wendy Simon, a councillor for Kensington and Fairfield, will become the defacto Mayor of Liverpool and leader of the city.
In his statement, released today, Mayor Anderson said: “I have always done what I believe is best for the city, and I am taking the following action with those best intentions in mind.
“It is important that everyone in Liverpool knows that our leaders are focussed on what is most important to the people; their livelihoods and, with a pandemic still in force, their lives.
“For this reason, I believe it is important that the city, and government, are reassured that our city is indeed operating in the correct way.
“I am, therefore, stepping away from decision-making within the council through a period of unpaid leave, until the police make clear their intentions with the investigation on the 31st December.
“I will make a further statement at that point. Wendy Simon will be acting as Mayor and I have all faith that she will provide the leadership our city requires at this time.
“The arrest on Friday has also been a painful shock for me and my family, following a difficult few months. I need to focus on their future and returning to a normal they can recognise, with the reassurance that I am no longer under suspicion.
“Therefore I am going to focus on co-operating with the police in their ongoing inquiry, as I believe time will make it clear that I have no case to answer.
He added: “This situation has not dampened my passion for our city and the inspiring people who live and work here, most particularly the dedicated public servants who work within the Council and the Cabinet. They will continue their incredible work, as we would expect, against the challenging circumstances we find ourselves in.
“But I am not prepared to contribute my own circumstances to those challenges, so I have reached this decision for that reason alone.
“I am very grateful for the many messages of support I have received and I have faith that, as always, the future of our city is bright and its best days are ahead.”