The ICAC has arrested 39 persons, including an Assistant Manager of the Urban Renewal Authority (URA), for alleged bribery and fraud involving compensation totalling about $10 million over a number of redevelopment projects of URA.

Also arrested in an operation codenamed " Fire Balloon ", which commenced last Friday (April 16, 2004), were a director of a company, a proprietress of an estate agency, six flat owners, and 30 suspected bogus tenants.

The investigation arose from a corruption complaint, alleging that a company director might have offered advantages to an employee of URA for classified information in relation to various URA redevelopment projects.

ICAC inquiries revealed that the arrested company director had allegedly offered about $270,000 in bribes to the Assistant Manager of URA.

In return, the Assistant Manager of URA allegedly provided the company director with classified information on six URA redevelopment projects between July 2002 and October 2003.

It was suspected that with the classified information, the arrested company director and the estate agency proprietress had acquired or rented properties subject to URA resumption, with a view to defrauding compensation.

The arrested company director and the estate agency proprietress were also suspected to have recruited a number of persons to acquire or rent some of these properties.

It was alleged that upon receiving compensation from URA, the flat owners or suspected bogus tenants would keep part of the money as rewards, and surrender the remaining amount to the company director and the estate agency proprietress.

As a result of the fraudulent scheme, the syndicate had allegedly defrauded URA of compensation totalling $10 million.

During the operation, $76,000 in cash, believed to be bribe money, was seized.

URA has rendered full assistance to the ICAC during its investigation.

The arrestees have been released on ICAC bail. Inquiries are continuing.