Cheshire Police have confirmed that their investigation into Cheshire East Council's awarding of contracts to a company run by the former council leader's physiotherapist has been passed to the North West Regional Organised Crime Unit.
Police launched a criminal investigation at the beginning of the year to determine whether there has been any "misconduct in a public office".
Core Fit, which is run by Amanda Morris, were awarded three contracts with a total value of £156,000 to deliver fitness classes in schools. The contracts were awarded outside of normal contract procedure rules using a waiver notice which was signed by senior officers.
A police spokesperson said "For several months, Cheshire Constabulary has conducted an investigation into alleged improper conduct at Cheshire East Council.
"The investigation has so far proved to be extremely lengthy and complex, and it is anticipated it will be many more months before a conclusion is reached. Now, in the interests of impartiality and to maintain the credibility of the ongoing investigation, a decision has been taken to pass the investigation over to officers at the regional TITAN unit.
"We would like to stress that this decision has been made to ensure the integrity of the investigation and all those involved, in light of the fact that the Constabulary and the local authority enjoy a healthy, professional working relationship. No inferences should be drawn regarding the core investigative focus of the TITAN organisation."
The former leader of Cheshire East Council Michael Jones announced his resignation at a meeting of the Cheshire East Conservative Group in December 2015, as a result of the controversy caused by the awarding of the contracts to Core Fit.
However, he has maintained that he has done nothing wrong, saying "I am clear that I have not misled the Council", but said he was resigning as a result of infighting within the Conservative Party.
A spokesperson for Cheshire East Council said: "Cheshire East Council is co-operating fully with the police so they can carry out all necessary lines of inquiry.
"As this investigation is ongoing, it would not be appropriate to comment further at this time."
