Former Free National Movement Senator Kay Forbes-Smith was quizzed by officers from the Anti Corruption Unit concerning her stint as managing director of the Disaster Reconstruction Agency (DRA).
According to well-placed sources, Forbes-Smith has been released pending further investigations after she was grilled by detectives over a two-day period.
Investigators reportedly quizzed Forbes-Smith for 14 hours on Thursday and 12 hours on Friday.
Forbes-Smith helped to organize the Free National Movement campaign for the 2012 and 2017 general elections.
When the FNM won the government in 2017, Forbes-Smith was appointed President of the Senate.
But she quit the post in December 2019 to spearhead relief efforts in the aftermath of catastrophic Hurricane Dorian for which she was paid $110,000 annually, plus a $30,000 housing allowance and $15,000 duty allowance.
Her contract was cancelled in September 2021, weeks after the Progressive Liberal Party regained the government in a crushing defeat of the FNM.
A subsequent audit into the DRA revealed that supplies for a dome city intended to house displaced residents had gone missing.
Police are investigating this in addition to contracts that were awarded for post hurricane cleanup in Abaco and Grand Bahama.
Forbes-Smith also came under fire for selling a generator a 15 kilowatt generator to the Grand Bahama Power Company for $16,000 around the time that she began spearheading post-hurricane relief efforts.