Giuseppe ‘Giosi’ Ferrandino, a member of the ruling Democratic Party (PD), is suspected of taking bribes worth €330,000 from a local cooperative, CPL Concordia, Ansa reported.
His brother, Massimo, was also arrested along with officials from CLP Concordia, which employs around 1,800 people.
The arrests come as part of an investigation into alleged corruption related to the provision of natural gas to the island.
The probe found evidence of slush funds in Tunisia, allegedly created by CLP Concordia, that were used to pay Ferrandino and other officials for “favours”, Ansa reported.
It is also claimed that money was paid to members of the Camorra, the Campania-based mafia network, Ansa said.
The arrests come almost two weeks after Maurizio Lupi resigned as transport minister amid a public works corruption scandal.
Ferrandino’s arrest also follows the arrest last summer of Giorgio Orsoni, Venice’s ex-mayor, over bribery allegations related to the Moses flood barrier project.
By Anna Pujol-Mazzini