A SENIOR Tory councillor has been arrested on suspicion of conspiracy to defraud.

Monkhams ward Cllr Jim O'Shea, Of Repton Park in Woodford Green, is currently on bail while police investigate the allegations.

The former deputy mayor and cabinet member for planning and regeneration declined to comment on the revelation, which only emerged after an anonymous letter arrived at the Guardian.

A well-placed source attributed the tip-off to infighting between high ranking members of the Conservative administration, which was sparked by the ousting of Tory leader Cllr Alan Weinberg after a vote of no confidence in March.

Cllr Weinberg was replaced as party leader by Cllr Keith Prince, but will remain as leader of Redbridge Council until May.

A council insider revealed: "There's an enormous dog-fight going on at the moment in the Conservative party between Cllr Weinberg's group and the group behind Cllr Prince.

"Cllr Jim O'Shea was behind Cllr Prince and so there may have been some revenge involved after the coup."

The party, and its councillors, have refused to comment.

A police spokeswoman confirmed that Cllr O'Shea was currently on bail after being arrested in March last year on suspicion of conspiracy to defraud.