By Sam Rkaina, Local Government Reporter
The 44-year-old Bristol man was arrested by Avon and Somerset police officers at a residential address on Thursday morning.
The city council is refusing to confirm any details about the exact nature of the alleged offences, about how long the officer has worked for the council or about which department he works in.
The council did say that the matter was being dealt with by the council’s audit team.
Council spokeswoman Helen Hewitt said: “An incident regarding alleged corruption within the council is currently being investigated by the police.
“The council sets high standards in relation to alleged impropriety and this criminal investigation has the full support of the council.
“The council’s code of conduct for employees sets out the internal standards of conduct expected from all Bristol City Council employees.
“In those cases when the code of conduct appears to have been broken, a robust investigation procedure is followed and this matter will be investigated in this way.”
Avon and Somerset police spokesman Wayne Baker said: “I can confirm a 44-year-old man from Bristol has been arrested on suspicion of fraud under the Fraud Act 2006.”