Former Malawi Communications Regulatory Authority (Macra) Director General Godfrey Itaye spent Tuesday night in Police custody in Blantyre.
Itaye who is the current Lilongwe Water Board Chief Executive Officer was arrested after he travelled to Blantyre where he was summoned by the police.
National Police Spokesperson James Kadadzera said he had no information but published reports show that the arrest is connection to fraud at Macra during the Democratic Progressive Party (DPP) administration.
Last week, Police also arrested Malawi Communications Regulatory Authority Finance Director Ben Chitsonga and Procurement Specialist Joseph Ngalawa.
The two are accused of using public funds to buy DPP cloths worth K100 million.
Since the DPP lost power to the Tonse Alliance in June, several officers working or who previously worked in parastatals have been arrested in connection to corruption.
Arrested people include workers and former workers of ESCOM and Malawi Energy Regulatory Authority.