Yesterday's operation was the Independent Commission Against Corruption's most spectacular action since 2003, when 22 people, including TVB executives, entertainment mogul Albert Yeung Sau-shing and many well known singers, were arrested.

Two of the arrested - Wilson Chin Kwok-wai, a prominent executive producer of variety shows, and TVB artist Ning Jin - have been working closely with Chan on his interview show, Be My Guest.

TVB's head of business development, Wilson Chan, was also arrested. The fifth person was Edthancy Tseng Pei-kun, Chan's former assistant who is now director of an advertising and production company. The TVB employees have been suspended from duty and a spokesman said the station's group general manager, Mark Lee Po-On, had temporarily taken over Chan's duties.

The drama began yesterday morning when dozens of ICAC officers arrested Chan, 51, at his home in Argyle Street, Ho Man Tin.

At about 4.40pm, an ICAC van took him to his office at TVB's headquarters in Tseung Kwan O. Chan, sporting a silver-coloured hooded down jacket, was mobbed by a frenzied media pack desperate for a word from the TV personality. But Chan, general manager of TVB, did not answer questions as he entered his office accompanied by ICAC officers. He left shortly before 8pm and investigators took away documents. An ICAC spokesman confirmed that five people had been arrested in relation to corruption allegations. He said TVB management had fully co-operated during the investigation.

The five have been detained at ICAC headquarters in North Point and so far no one has been charged.

The arrested all had close links to Chan. Tseng, 28, a former officer in the police tactical unit, had been his assistant for three years.

Tseng and Chan, close friends, have often been in the media spotlight.

In January, Chan was said to have organised two parties to celebrate Tseng's 28th birthday and invited some of the city's top singers, including Joey Yung Cho-yee. Tseng is currently a director of six companies, including Idea Empire Entertainment Company and Idea Empire Advertising & Production Company.

One of the companies' addresses is allegedly the home address of Chan.

Chin is a veteran TVB producer who came to fame with a string of highly popular variety shows, including Minutes to Fame - Hong Kong's answer to American Idol - and Beautiful Cooking, a reality show mocking the poor culinary skills of pretty actresses and models.

Many TVB employees were shocked by the news and said they found it hard to believe that Chan would have crossed the line.

One veteran company employee said: 'He had worked as a government administrative officer. He is smart and very sharp at his job. This is very strange.'

Another experienced TVB staffer on the production team said colleagues were surprised by the news, and people in the office could not stop discussing what had happened, although the gossip had not affected the company's operation.

Veteran TVB actress Liza Wang Ming-chun, who was attending the annual meeting of the Chinese People's Political Consultative Conference in Beijing, said she was shocked, because the broadcaster had enjoyed a good reputation for a long time. A TVB spokesman said that lectures and seminars educating new employees on corruption prevention had been held constantly, and the TV station always issued updated guidelines for its employees during festive seasons. He said that the arrests would have no impact on the broadcaster's operations or affect services to the public and its clients.

According to the Prevention of Bribery Ordinance, anyone who accepts advantages without the authority of their employer is guilty of an offence subject to a maximum fine of HK$500,000 and seven years' imprisonment.

The Broadcasting Authority is monitoring developments.