The ICAC has arrested three persons for their alleged involvement in a $60 million loan scam involving a privately-run education group which planned to use the funds to facilitate listing on the Growth Enterprise Market (GEM).

It was suspected that the loan was obtained with corrupt assistance of staff of a local financial institution.

The education group provides a range of correspondence education programmes, and is affiliated with universities in the US, Canada, Australia and the Mainland.

The arrestees included a couple who were directors of the education group.

The third arrestee was a shareholder of a company which acted as an agent to collect fees from various universities for the education group.

The investigation arose from a corruption complaint, alleging that a director of a private education group had offered advantages to the managing director of a financial institution in Hong Kong for granting a huge loan.

ICAC enquiries revealed that early last year, the education group applied to the financial institution for a $60 million loan.

The arrestees had allegedly conspired to submit false business information and accounting documents of the education group’s subsidiaries and the agent to support the loan application.

Part of the false accounting documents related to bogus business between the education group and the agent.

The $60 million loan was subsequently granted to the education group.

It was believed that the loan was to enable the education group to establish an on-line university and to float it on GEM.

The three arrestees –'96 a man and two women –'96 have been released on ICAC bail.

Enquiries are continuing.