Eleven people have been arrested for their alleged involvement in a compensation scam over bogus graves. They include four Lands Department inspectors, a village representative and six villagers.

The ICAC made the arrests Wednesday and Thursday after receiving reports that the village representative offered advantages to an inspector for helping indigenous villagers apply for $870,000 in ex-gratia compensation with the bogus graves.

The department has started land resumption in the area to develop an expressway, and has identified a number of graves that will be affected by the project. Relatives of the grave occupants are eligible to apply for ex-gratia compensation over the graves' removal.

Investigations have found that applications submitted by the arrested villagers in relation to the 22 graves, which had not been identified in the department's initial survey, are suspicious. Subsequent exhumation has found 10 of the graves newly constructed and empty.

It is believed the village representative conspired with the villagers to offer advantages to the inspectors for their assistance in processing the false claims. As a result of the scam, about $870,000 was paid to the claimants.

The Lands Department has rendered full assistance to the ICAC investigation. The arrestees have been released on bail as inquiries continue.