Mo Chaudry, who was included in a list of the UK's top 100 Asian business people, was brought in for questioning on Wednesday.
Chaudry, 48, who owns the popular Waterworld leisure attraction in Stoke-on-Trent, is the third prominent figure to be arrested in connection with the inquiry over the last two months.
In March, the Elected Labour mayor of Stoke-on-Trent, Mark Meredith, was arrested and questioned on allegations of misconduct in a public office and complicity in corruption in a public office.
That followed the arrest of senior Conservative councillor, Roger Ibbs who was also questioned in connection with corruption in a public office on February 27.
No one has yet been charged with any offences and all three men have been released on police bail until June.
The investigation being led by Staffordshire Police's Major Investigations Unit centres on aborted attempts to shut a splash pool at the Dimensions Leisure Centre in Stoke-on-Trent.
A Staffordshire Police spokesman confirmed: "A third person was arrested on Wednesday in connection with the ongoing inquiry into matters referred to us by Stoke-on-Trent City Council.
"They have been bailed and are due to report back to police at a date in June."
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