Former Minister Mahindananda Aluthgamage was arrested by the Financial Crimes Investigation Division (FCID) of the Police a short while ago.
He was arrested after he arrived at the FCID this morning to make a statement into the alleged misuse of Rs. 39 million state funds.
It is alleged that Aluthgamage used the funds to purchase carrom and checker boards which he distributed to schools and sports clubs to enhance his political clout.
Former SATHOSA Chairman Nalin Fernando was arrested over the same crime on April 6, but was released on bail on April 10.