A former civil servant has been arrested by the ICAC on suspicion of loansharking activities involving 53 former colleagues. Anti-graft investigators arrested the man and an alleged accomplice as they left the Water Supplies Department's depot in Sai Yee Street, Mongkok, on Friday. The ICAC said the suspect, who had been employed by the then Public Works Department - now the Works Bureau - had approximately $70,000 on him when he was arrested. Investigators believe the loansharking business was run from the water supplies depot. The ICAC said the man had lent up to $3 million at excessive rates 'over a long period of time' to 53 Water Supplies Department employees. The ICAC said it had interviewed one water works inspector, two assistant inspectors, 21 work supervisors, and 29 other department staff for allegedly obtaining unauthorised loans. Investigations revealed money had been lent at an annual interest rate of 96 per cent and that some borrowers had been criminally intimidated when they failed to pay the interest on time. Chan Pui-wah, the Water Supplies Department's acting deputy director, said he was concerned about the allegations and that the department was co-operating with the ICAC. The pair arrested were released on bail pending further inquiries.