The minister, however, has denied the allegations.
"I am not involved in it that's what I can say," Alemao said in a terse reply.
"If need arises, we will call the former minister (Churchill Alemao) for recording his statement. But at this time we are still investigating," said ACB SP Bosco George.
Suspended executive engineer K H Kamaladini has disclosed to ACB sleuths that former Goa PWD minister Churchill Alemao was apparently involved in the scam.
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Kamaladini is booked for fraud and illegally awarding water supply tenders, causing loss to the state exchequer.
The disgraced official had issued 19 tenders in November 2011, allegedly in violation of norms, sources said.
"The engineer in his statement attributed his act to the directions of former PWD Minister Churchill Alemao," according to sources.
Sources said that Kamaladini disclosed to ACB that the works were approved by Alemao.