Jones Arogbofa, a retired brigadier and former chief of staff to ex-president Goodluck Jonathan, has been detained and quizzed by the Economic and Financial Crimes Commission (EFCC).
According to an online medium, Arogbofa was quizzed along with Benjamin Dikki, former Director-General of the Bureau for Public Enterprises (BPE), and Godknows Igali, former Permanent Secretary in the ministry of power.
Reports indicate that they are being investigated over the payment of alleged phantom insurance premiums totalling N27 billion for cover not provided to the defunct Power Holding Company of Nigeria (PHCN).
Sources at the Ministry of Power had revealed that the N27 billion payments were made for covers not provided but memos were initiated, backdated and secretly executed.
The premiums were ostensibly made to insurance firms thought to be fronting for powerful figures in the ministry and at BPE.
Eventually, the money was allegedly shared among senior government officials, with some getting as much as N1 billion in the dying days of the last administration.
In December 2015, a former BPE Director wrote to Vice-President Yemi Osinbajo alleging fraudulent practices at the agency in a letter dated November 2, 2015.
He alleged that N27bn premium payments was for a non-existent insurance cover adding that a phantom N1.5bn contract was awarded to a prominent PDP lawyer by Dikki to wind up PHCN even when there was no work for the lawyer to do.
The men have however been released by the EFCC pending further investigations.