The ICAC has arrested 11 people for illegal excavation of boulders from Tung Chung River. They include a rural committee chairman alleged to have accepted advantages to facilitate the scam.

Also arrested in yesterday's operation were a vice-chairman, a secretary and six members of the rural committee, as well as two operators of an engineering company.

The ICAC received corruption complaints alleging the chairman accepted advantages involving the illegal excavation for a construction project at Penny's Bay.

The project, a joint venture by the Government and a private enterprise and supervised by the Civil Engineering Department, involves the construction of an artificial lake. Another construction company has been subcontracted for the lake project which requires large quantities of boulders.

The arrested engineering company's operators allegedly undertook to supply the subcontractor with boulders removed from Tung Chung River, claiming they were to be obtained legally. The Government then received a complaint alleging environmental hazards caused by the removal.

It was also alleged the engineering company produced a letter to the subcontractor, purportedly issued by a rural committee authorising the removal as part of a flood prevention project. The letter was subsequently submitted to the Government.

ICAC investigations found the chairman and secretary may have allegedly provided corrupt assistance in providing the letter, and deceived the Government into believing the boulders were removed for flood prevention.

The arrestees remain in custody for questioning.