A COUNCILLOR has been arrested over allegations of electoral fraud involving a house where a murder took place.

Khurshid Ahmed, who represents Werneth, in Oldham, was arrested at the town's police station yesterday. He had gone there with a solicitor.

The Liberal Democrat was arrested on suspicion of forgery and providing false information.

Mr Ahmed, 48, has been bailed until July 18.

He was not available for comment today.

Mr Ahmed, a former Labour councillor, joined the Liberal Democrats in 2004.

He is understood to be a prominent member of the Oldham Asian Business Association and owns a number of properties in the town.

News of his arrest will come as a blow to the Liberal Democrats as they try to overturn a Labour majority of just four.

Liberal Democrat leader Howard Sykes said that Mr Ahmed voluntarily reported to the police after it became apparent something may be wrong with the registration of an elector he that had been asked validate.

He said Mr Ahmed would be standing as a candidate in next week's council elections.

Part of the police inquiries are believed to involve allegations of false registration surrounding a property on Manchester Road, Werneth. The flat was the scene of the killing of Said Saidi by his friend, asylum seeker Ali Rahimi.

Rahimi stabbed Saidi in a row over money. He was arrested trying to board a ferry at Dover and jailed for a minimum of 11 years at Manchester Crown Court.

Last month another Werneth councillor, Labour's Fida Hussain, was arrested on suspicion of money laundering. He was bailed until May 8.