Peter, 46, had earlier gone to the MACC office in Kota Kinabalu to have his statement recorded.

When contacted by FMT, MACC confirmed the arrest and said the businessman-turned-politician was expected to be brought to the Magistrate’s Court here tomorrow to be remanded for further investigations.

It was earlier reported that several businessmen and contractors in Sabah had obtained projects under the rural and regional development ministry, which was then helmed by Shafie Apdal. Shafie is now Warisan president.

NST Online said another two people were detained tonight. They included the 52-year-old owner of a construction company and the former deputy secretary of a division in the ministry.

It reported that bank accounts containing more than RM150 million were frozen yesterday after MACC started a probe into the alleged embezzlement of funds from the ministry. Another RM29 million in 10 accounts was frozen today.

It said MACC had swooped on 15 locations in Sabah as part of its investigations, seizing documents.

Borneo Post said Peter had earlier denied making a false claim of over RM42 million while undertaking a work contract with Universiti Malaysia Sabah (UMS).

According to the portal, Peter said his company received a certificate confirming it had completed the contract from UMS in compliance with all stipulated rules and scope of work.

“I strongly deny the allegations that have gone viral on social media that I am being investigated by MACC for making false claims.

“We have never made any false claims and all payments, including the certificate confirming the completion of the contract from UMS, have been received. So there is no question of us making a false claim,” he was reported as saying.

He slammed the allegations as attempts to smear his reputation.

He said whenever his company forwarded a claim, the government’s engineers assessed it and a committee would evaluate all work done before giving its approval.

Meanwhile, Bernama reported Rural and Regional Development Minister Ismail Sabri Yaakob as saying the ministry will cooperate with MACC in the probe into the alleged misappropriation of more than RM100 million in funds for programmes for the poor.

He said he was made to understand that it was an old case.

“Although it is an old case, the files may still be with the ministry.

“So, if MACC needs the files, we will hand them over.

“Whatever the MACC needs, we will provide,” he told reporters in Putrajaya.

According to media reports, more than RM100 million in funds for the poor had been siphoned off by ministry officers who had been in cahoots with several companies.

The fund included a food aid programme for poor students.

Following investigations, it was learnt that MACC had frozen nine bank accounts, involving RM151 million, Bernama reported.