Former minister Konrad Mizzi was questioned on Tuesday over suspicious conversations he had with Yorgen Fenech, former Electrogas shareholder and alleged Daphne Caruana Galizia murder conspirator.
Mizzi was hauled in for interrogation on Tuesday evening and held in custody overnight. He is expected to face further questions on Wednesday.
Sources said Mizzi was asked about contact he had with Fenech some two years ago.
The probe into communication between the then minister and Fenech, at the time the head of the Tumas Group business empire, is part of a wider investigation into suspected trading in influence.
It began when police seized Fenech’s phone when they arrested him over the Caruana Galizia murder last year.
Fenech had been the main liaison between government and the private investors behind the gas-fired powerstation. He was one of three shareholders of Electrogas until his arrest in November over the journalist's murder.
Mizzi was Energy minister and negotiated the Electrogas deal.
A joint investigation by Times of Malta and Reuters had outed Fenech as the secret owner of offshore company 17 Black.
17 Black was identified in a leaked e-mail as one of two sources of income for the Panama companies Hearnville and Tillgate, which were set up by OPM consultants Nexia BT for Mizzi and the Prime Minister's former chief of staff Keith Schembri.
Meanwhile, Times of Malta revealed that police on Wednesday morning had also taken Schembri in for questioning over suspected financial crimes.
Sources told Times of Malta that Schembri had been picked up by police at his Mellieha home at around 7am this morning.