A second man has been charged with corruption in relation to Western Power contracts as WA's public sector fall-out continues.

Financial Crime Squad detectives arrested and charged a 55-year-old Iluka man with corruption after a 58-year-old Redcliffe man, who was refused bail, was charged with 27 counts of acting corruptly on Thursday.

According to police, Western Power identified serious concerns regarding the management of tender and contract processes relating to work carried out on its fleet of vehicles between August 2018 and November 2019.

The scandal plaguing WA's public sector deepens with further corruption charges laid. Credit:Jessica Shapiro

Detectives will claim the two men had a personal relationship with each other and that through this relationship the Iluka man's business financially benefited from contract arrangements.

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After police raided a business in Bassendean and a residential home in Iluka on Thursday they arrested the Iluka man, who's not a Western Power employee, as he returned to Australian from an overseas flight.

The 55-year-old is due to face Perth Magistrates Court on Monday.