By Zhu Shanshan

High-profile talk show host and general manager of Television Broadcasts Limited (TVB) Stephen Chan Chi-wan was arrested Thursday for allegedly grafting at least HK$10 million ($1.288 million), according to a report from the Standard.

The Hong Kong-based newspaper said an anonymous source revealed that Stephen Chan controlled a shell company which accepted production contracts from TVB and then outsourced the work to other companies.

Some TVB artists Bernice Liu Bik-yee, Moses Chan Ho and Raymond Lam Fung were allegedly forced to perform on some shows for free or at very low pay and the shell company accumulated as much as HK$10 million over the years.

But the source said it is unnecessary for TVB to outsource to other companies because it has enough resources to handle productions, from transportation to make-up, lighting and costumes.

Along with Stephen Chan, four other TVB employees, TVB’s head of business development Wilson Chan Wing-suen, variety department executive producer Wilson Chin Kwok-wai and actor Ning Jin, and director of Idea Empire Advertising and Production Company Tseng Pei-kun were also detained by the Independent Commission Against Corruption (ICAC).

The ICAC reportedly launched the investigation two months ago after it received complaints. Chan was arrested at his home at 6 am yesterday.

TVB spokesman Tsang Sing-ming told the media that the work and duties of the four employees have been suspended and the company will fully cooperate with the ICAC’s investigation.

Chan was previously an administrative officer in the Hong Kong Government before joining TVB in 1994. He was promoted to assistant general manager of Television Broadcasting at TVB in April 2002 and became general manager of Broadcasting in April 2004.