Lahad Datu assemblyperson Mohammad Yusof Apdal has been remanded for four days to facilitate investigation in a MACC probe.
Yusof, who is also Parti Warisan Sabah Shafie Apdal's younger brother, was arrested at the MACC office in Kota Kinabalu yesterday.
He is the second sibling of Shafie's to be arrested after Hamid Apdal was also arrested by the MACC last week.
Yusof's remand was granted by magistrate Stephanie Sherrin Abbie under the MACC Act 2009, according to Utusan Malaysia.
Yusof was represented by lawyer Edward Paul while the MACC was represented by deputy public prosecutors Rozanna Abd Hamid, Rustam Anip and Mohd Faliq Basiruddin.
The arrests were in relation to MACC's probe into the alleged misappropriation of at least RM1.5 billion in rural development fund intended for Sabah.
To date, MACC has questioned over 45 people in relation to the case.
Shafie was previously Umno vice-president and Rural and Regional Development Minister.
He was sacked from cabinet in 2015 for questioning Prime Minister Najib Abdul Razak's role in the 1MDB scandal.
He resigned as Umno vice-president a year later after his party membership was suspended.
Shafie, who is also the Semporna MP, subsequently formed Warisan, a Sabah-based party aimed at unseating Umno in the state.