The Star Online reported that one of them was Parti Warisan Sabah’s Youth chief Mohd Azis Jamman.
It said the other two were Jamawi Jaafar, who heads the Tenom Umno Youth wing, and Ariffin Kassim, who is Tawau Umno Youth leader.
The portal said the anti-graft agency’s deputy chief commissioner (operations) Azam Baki, had confirmed the arrests.
Azis’s arrest comes after news portal Malay Mail Online reported that the MACC paid him a visit at his house in connection with the ongoing investigations.
It was earlier reported that 350 projects under the ministry were being scrutinised by the MACC over allegations of embezzlement of RM1.5 billion in federal funds.
These projects were carried out between 2010 and 2016 in the Kota Kinabalu, Kudat, Kota Belud, Ranau, Beaufort, Keningau, Lahad Datu, Tawau and Sandakan districts.
The RM1.5 billion was said to be part of RM7.5 billion allocated for projects in Sabah involving water, electricity and road infrastructure development projects.
Earlier last week, the MACC remanded three men, including Parti Warisan Sabah vice-president Peter Anthony, for investigations over alleged corrupt practices in the implementation of projects.
The other two were a 52-year-old owner of a construction company and the former assistant secretary of a division in the ministry.