Police have arrested a second man in connection with their probe into alleged misuse of City Hall funds by former mayoral adviser Lee Jasper.

A 45-year-old man handed himself in at Belgravia Police Station on Tuesday after officers had earlier arrested a 61-year-old in Harrow.

Both were arrested on suspicion of money laundering. The 61-year-old man was later bailed and will return on Thursday.

Police also confirmed they had carried out searches in Harrow, Tottenham and Croydon in connection with fraud allegations involving six organisations that had received public funding.

After the second man surrendered himself, police also searched an address in Leytonstone.

It is believed that the six groups were funded by the London Development Agency (LDA) - but the organisation refused to confirm this while a police investigation is ongoing.

Scotland Yard has previously investigated Mr Jasper, who resigned as Ken Livingstone's adviser on race relations last Wednesday.

Police investigated claims of wrongdoing in the way £3.8m worth of LDA grants were given to six groups run by Mr Jasper's friends or associates.

But detectives said they found nothing criminal in the way the money was awarded.

An internal review by the LDA which was published in January said there was no evidence against Mr Jasper to support charges of "corruption and collusion" in the awarding of the grants.

Mr Jasper quit his £120,000 a year post after steamy emails he sent to a community project worker were made public.

Mr Livingstone has defended Mr Jasper and has said he wants to reinstate him.

A spokesman for Ken Livingstone said: "The GLA will naturally not comment on any individual arrest or an ongoing police investigation which has not been tried before a court.

"However, in the event that any money is proven to have been illegally taken from any project associated with the GLA or LDA, the Mayor will naturally always press for the strongest possible action to be taken."