According to The Star Online, the passengers, who claimed to be fishermen, were arrested at about 2.10pm just as their boats were nearing the village, which is one of the key areas where "mopping operations" are being conducted in search of the Sulu army.
"They claimed to be fishermen but we are wondering what they were doing within the operational area," Ismail (picture) was quoted as saying in the report during a joint press conference with Armed Forces chief Gen Tan Sri Zulkifeli Mohd Zin.
He said the men, all unarmed, were sent to the Lahad Datu district police headquarters for investigation.
With today's arrests, the authorities have arrested a total of 106 people believed to be linked to the armed incursion in Sabah by the self-proclaimed royal army of the Sulu Sultanate in the Philippines.
Ismail added that the authorities have yet to determine the total number of casualties in the ongoing operation to flush out the Sulu soldiers.
Official figures have placed the current death toll at 61, including 53 Sulu gunmen and eight Malaysians.
"The forensic team should be able to carry out full investigations after the mopping up exercise is completed tomorrow (Sunday)," The Star Online quoted the IGP as saying.
Ismail also explained that the team was currently only taking photographs of the dead from a distance.
Earlier this morning, the IGP told reporters that a Sulu gunman was killed in an 8am shootout as he attempted to slip through a tight security blockade in Kampung Tanjung Batu.
But the IGP admitted that there was no sign yet of group leader Agbimuddin Kiram, the brother of self-proclaimed Sulu Sultan Jamalul Kiram III.
"We believe they were trying to avoid security forces by moving between both villages," he was quoted as saying, referring to Kampung Tanjung Batu and Kampung Tanduo.
Ismail added that the remaining members of Agbimuddin's group have likely been surrounded by Malaysian forces and are moving about in pairs or in small units.