A PRISON commander and a former inmate have been granted bail during an ICAC inquiry into alleged corruption offences. Leung Kwai-hoi, Correctional Services Department (CSD) superintendent, and convicted fraudster and company director Jacky Wong Chai-chung, were arrested by the Independent Commission Against Corruption on Wednesday. Mr Leung, 46, was arrested at the Pik Uk Prison, which he commanded until his suspension yesterday following reports handed to his bosses and the ICAC. The ICAC confirmed a CSD superintendent, a former prisoner, and two other civilians were arrested for alleged corruption offences contrary to the Prevention of Bribery Ordinance. The two civilians were bailed out on Wednesday. Investigators searched eight premises and interviewed eight serving CSD officers and 22 civilians during the operation, the ICAC said. It is understood the premises searched included Mr Leung's home and office. The ICAC said the investigation was based on information received from the CSD Commissioner that certain officers were suspected of corrupt involvement with prison inmates and their criminal associates. A career CSD officer, Mr Leung has worked his way up through the prison system since 1967. He also was chairman of the CSD Officers' Association (senior section) and had been particularly active in forging close links with Chinese officials. The allegations concern the treatment and release of Mr Wong in May this year from Stanley Prison, where Mr Leung had been second-in-command until his promotion to Pik Uk. Mr Wong, 41, the owner of trading concern Continental King Lung (Holdings) Ltd, was sentenced to four years' jail in August 1991 for his part in a conspiracy to defraud the Hang Lung Bank and other financial institutions of up to $30 million. The fraud involved a contract in 1985 to supply 50,000 tonnes of maize to the Korea Feed Association. The company had to provide a guarantee of 10 per cent but had neither enough money nor credit to pull it off. Mr Wong, a multi-millionaire, also had extensive movie industry interests. He failed to have his sentence overturned by the Court of Appeal in 1992. His term was due to end next month but he was able to convince the Release Under Suspension Board that he should be let out early. The ICAC also is investigating the treatment he received in prison. A CSD spokesman said the department was making no official comment on the case. He said a prisoner's work and the number of visitors he could see were up to the discretion of top prison officers. ''It's not for us to become involved yet, and it's far too early to say what reviews we will undertake,'' the spokesman said. The superintendents of a prison are empowered to grant remission on a sentence in preparation for early release, up to one day for every two served in cases of hard work and good behaviour - meaning sentences can be cut by up to a third. Their reports, along with similar assessments from police and the Social Welfare Department, are examined by the board, headed by Mr Justice Patrick Chan, a High Court judge. Another CSD source said once fellow prisoners realised a prisoner was a ''pet'', all other prisoners would treat him well, protecting him from bullying as he was considered someone of great influence. ''That's more important than the other privileges. A sentence gets very long if you're doing very hard time.''