Francois Theriault was arrested on Thursday and faces one perjury charge and two counts of obstruction of justice.
Theriault, 54, will appear before a judge at a later date.
He was arrested by Quebec provincial police at his home in Laval, just north of Montreal. They also conducted a raid at the home.
Theriault, a site supervisor for the City of Montreal, told the Charbonneau Commission on Nov. 15 he only received gifts like bottles of wine and hockey tickets.
But a three-week investigation by provincial police led to allegations that Theriault received certain financial benefits related to his home.
According to the charges detailed in an arrest warrant filed in court Thursday, Theriault is accused of not revealing he had received financial incentives from Catcan involving his home.
Catcan is a company run by Tony and Paolo Catania, a family name that was a prominent one during testimony at the Charbonneau inquiry this year.
The charges of obstruction of justice stem from allegations Theriault misled inquiry investigators.
He was suspended from his post at the City of Montreal in October after his name was mentioned by ex-construction boss Lino Zambito. He was subsequently suspended without pay in November.
It is unclear exactly when Theriault will appear in court, but it won't be until early 2013.
Police said in a statement that Theriault's arrest has no bearing on the immunity of witnesses testifying before the Charbonneau inquiry.
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