Treasury Cabinet Secretary (CS) Henry Rotich was on Tuesday morning grilled by the Directorate of Criminal Investigations (DCI) over corruption allegations.
Reports indicate that the CS was questioned over the multi-billion scandal surrounding the construction of Arror and Kimwarer dams.
Rotich reported at the DCI headquarters at around 6am and he had not left the premises by 9am.
This is the second time that the CS is appearing before the DCI having previously recorded a statement with the DCI over the matter.
More than Ksh20 billion was reportedly paid out although construction works at the site was yet to commence.
On Monday, reports emerged indicating that at least four CSs were using proxy companies to fraud the government.
This emerged after a team led by the Director of Public Prosecutions (DPP) Noordin Haji visited Italy where they unearthed details on how firms directly linked to the CSs were winning Government contracts.
For instance, one CS was found to have registered a company and put foreigners as its directors.
This meant that the government would award tenders to international companies only to discover they belong to locals.
DPP's investigations in Italy were triggered by the probe into transaction of CMC di Rivenna, an Italian company contracted to construct Ksh38.5 billion Arror dam in Marakwet West Constituency.
The company was undertaking a similar project in Kimwarer, Keiyo South constituency, at Ksh28 billion.
The two projects are being financed through a loan from the Italian government.
The company is also charged with the construction of Itare Dam in Kuresoi North, Nakuru County, at Ksh27 billion.
The three dam projects bring CMC di Rivenna's current construction stake in Kenya to Ksh91 billion.
CS Rotich previously indicated that the Attorney General approved the payment of Ksh12 billion before the National Treasury signed the deal on April 18, 2017 in order to secure funding through a loan from the Italian government.