Des Parkinson, pictured, who has been principal licensing officer at the authority for nearly three years, was suspended last Thursday. The borough council today confirmed an officer had been suspended by the authority but they would not comment on why.
Mr Parkinson, who is an ex-police chief superintendent and lives in the Telford area, said he had no comment to make.
He joined the council in 2004 and was also national secretary of the Police Superintendents' Association of England and Wales while he was with the police.
The licensing department is involved with a number of issues, including rules governing taxis. Staff are responsible for monitoring and licensing taxis and private hire cars.
They are also responsible for monitoring and licensing premises in the borough which sell alcohol.
John Harris, Telford & Wrekin human resources manager, said: "We can confirm that the council has suspended an officer within the licensing team but will not discuss individual cases."
He added: "The council is in receipt of a draft report following an investigation into taxi licensing in the borough, which will be published in the next few weeks. These two activities are unrelated."
Just days ago it was revealed that suspensions of staff at the council have more than trebled in the last four years.
Figures released to the Shropshire Star showed in the past 12 months, 27 people at the council had been suspended, seven have been disciplined, four have been dismissed and four cases are still open.
In 2002, eight people were suspended, eight people had disciplinary sanctions against them and three were dismissed.
The most high-profile recent suspension involved the authority's education chief Christine Davies, who was awarded the CBE in the Queen's Birthday Honours.
She was suspended as a "precautionary" measure until an independent investigation is carried out. No further details have been released.