Neil Heywood mystery: Gilded lifestyle of murder suspect’s son Bo Guagua

As one Chinese businessman who knows Bo Guagua well said yesterday: “He wants
to make a billion dollars and be politically important.”

But Bo Guagua and his parents now face a very uncertain future. His mother, Gu
Kailai, languishes in detention following her arrest last Tuesday on
suspicion of the murder of Neil Heywood, her husband Bo Xilai’s close
business associate. It was initially claimed that Mr Heywood had died of
alcohol poisoning in a hotel room the city of Chongqing last November, but
the Chinese government now says Mrs Gu is “highly suspected” of having
murdered him following a “conflict over economic interests”.

Bo Xilai himself has been removed from his position on the Chinese Communist
Party’s Politburo and Central Committee, and faces political and personal
ruin.

As well as sparking China’s biggest political crisis in decades, the couple’s
downfall has brought attention to the wealth and influence they garnered at
home and abroad.

It comes at the end of a week of dramatic twists which have seen new
revelations about the extent of Mr Heywood’s influence in China, before an
apparent rift with Mrs Gu culminated in his death and fears for the safety
of his widow Wang Lulu and their two children.

Taken before Mr Heywood’s death, these pictures indicate that Bo Guagua spent
much of his time at university acquiring a coterie of friends and contacts
whose future careers could prove invaluable to his family’s business
interests.

Though the party’s ideology dictates that its leaders live a humble life, with
Mr Bo supposedly paid a salary of £300 a month, the wealth they actually
acquired through the lucrative business dealings arranged by the likes of Mr
Heywood allowed their son access to the best education the West has to
offer.

At the age of 12, Bo Guagua was sent by his parents to Papplewick prep school,
near Ascot, and then on to Harrow – where the fees are £10,000 a term. The
school had been 41-year-old Mr Heywood’s alma mater, and he told friends he
had helped the boy secure his place there.

In 2006, by which time his father had risen to become China’s commerce
minister, Bo Guagua went to Oxford University to study philosophy, politics
and economics at Balliol College.

He is now a graduate student at Harvard University’s John F. Kennedy School of
Government, where he has been studying public policy and from where US
officials smuggled him into hiding last Thursday night.

At Harvard he became known for his consummate networking skills, helping
organise a “China Trek” for Kennedy students last year, where they met
senior Politburo dignitaries.

The party visited Chongqing, where Bo Xilai was then head of the Communist
Party, and were surprised to be greeted by a police motorcade.

“Everyone knew [Bo Guagua] was somebody important because of the meetings he
arranged and also the long police escort,” a classmate said.

With his mother now facing a death sentence if found guilty of Mr Heywood’s
murder and his father stripped of political power, Bo Bo Guagua is now
expected to apply for asylum in America.

The future must have looked very different in May 2008, when he posed for
photographs with a group of five friends from Oxford.

With him was Lawrence Barclay, 24, an Old Etonian now working as a consultant
for the Monitor Group, a multinational management consulting firm with a
reputation for secrecy over its clients, which carried out work for the
regime of Libyan dictator Muammar Gaddafi before his overthrow last year.

Alongside the pair were fellow Oxford students Augustus Robinson, Pippa Lamb,
Terry Oh and Lara Adamson.

Two years after the picture was taken Miss Lamb, 24, who studied Chinese at
Oxford, began a six-month stint at the British Embassy in Beijing, working
on projects to boost trade links between Britain and China.

She now works for JP Morgan, which has significant investments throughout
China.

Mr Robinson, 23, who also studied Chinese, and Lara Adamson, 25, are now
trainee solicitors with major law firms.

Terry Oh, a South Korean who was with Bo Bo Guagua at Harrow, is an aspiring
male model and also works as an associate for Pimco, the world’s largest
bond fund, which has extensive interests in south east Asia.

Bo Guagua and Mr Oh attended the 2008 Beijing Olympics together, enjoying the
benefit of prestigious seats at the opening ceremony of the games.

They travelled to China again in July last year, visiting the Great Wall and
horse riding together in the countryside around Chongqing, the city ruled by
Bo Guagua’s father until his downfall.

His academic achievements were less than glittering. He was reportedly
“rusticated”, or suspended, from Balliol for not studying hard enough and
had to return later to complete his degree.

He did, however, impress his fellow students when he organised a ball which
included a display by Shaolin temple monks and later managed to arrange for
Jackie Chan, the Hong Kong-born film star, to address the Oxford Union.

While at Harrow and Oxford university Bo Guagua was mentored by Lord Powell,
who is said to have been a “father figure” to the young man. The peer, a
president of the China-Britain Business Council who has travelled
extensively in the region, declined to elaborate but told The Sunday
Telegraph: “I know the boy through his father and saw him from time to time
when he was studying at Oxford.”

Intriguingly, given rumours that Mr Heywood had links with MI6, Lord Powell is
also on the board of Diligence, an intelligence firm set up in 2000 by
former members of the British and American secret services, including Nick
Day, a former MI5 official. The chairman of the board is William Webster,
the former director of the CIA and the FBI.

Mr Heywood is known to have been in the southwestern city of Chongqing last
June, when Bo Xilai hosted celebrations as party secretary, and where guests
at one event included Lord Powell. A day later, Bo Xilai entertained Lord
Mandelson at a banquet in the city.

The arrest of Bo Guagua’s mother has also shone a spotlight on her business
activities over the past two decades, and in particular her links to
Britain. It has now emerged that Mrs Gu stands accused by her husband’s
former police chief, Wang Lijun, of illegally transferring hundreds of
millions of dollars abroad.

It was Mr Wang who had already accused Mrs Gu of poisoning Mr Heywood. In his
capacity as a “Bai Shoutao” – literally a “white glove” – Mr Heywood had
brokered a series of secretive business deals for Mr Bo, who as a powerful
politician was not supposed to get his hands dirty with commercial ventures.

The Sunday Telegraph has now traced some of Mrs Gu’s own business
activities to an anonymous, run-down building a stone’s throw from
Bournemouth beach. It was here, in December 2000, she first tried establish
a commercial base in the UK.

Mrs Gu had already achieved a reputation as a legal high-flier when, in 1997,
she successfully represented a number of Chinese companies in a $1 million
bankruptcy dispute with an American firm.

Three years later came her move into Britain, where she teamed up with a
French architect called Patrick Devillers. Mr Devillers, who is understood
to be married to a Chinese woman, agreed to set up a company with Mrs Gu.

The move coincided with the enrolment of her son at Papplewick school, which
charges fees of around £22,400 year. There is now speculation that Mrs Gu
may have set up firms in Britain in order to channel the money Mr Heywood
was making for her and her husband in China.

Indeed, an article last Wednesday in the People’s Daily, the Communist Party’s
official newspaper – though ostensibly about the wider issue of corruption –
was widely interpreted as a further attack on Mr Bo and others like him. It
pointedly stated: “Some people had secretly gained dual citizenship and
foreign identities, transferred money and goods overseas, used relatives,
friends and mistresses to conceal their wealth.”

Mrs Gu and Mr Devillers established their firm, called Adad Ltd, at a business
park in Poole, with a working capital of just £1,000. It described itself in
the records of Companies House as offering “service activities” for other
companies, with Mr Devillers and Mrs Gu – using her business name of Horus
Kai – as its sole directors.

Adad appears to have operated as no more than a “shell” company, dissolving in
2003 having filed no accounts during its three years of operation, and could
have provided a front for the movement of funds from China.

Mrs Gu and Mr Devillers gave their residential address as the top floor
terrace apartment of Keystone House, six miles away in Bournemouth. Office
workers in the building were surprised that a woman with Mrs Gu’s wealth and
connections could have lived in the flat, as it is usually rented by
students from Bournemouth University looking for cheap accommodation.

Following the dissolution of Adad, the trail of Mrs Gu’s affairs becomes even
more complex.

By 2006 Mr Devillers, who also occupied a smart apartment in a residential
block in Earl’s Court, west London, had moved to Beijing, where it is
thought he continued to pursue their joint business interests.

He registered the Chinese arm of their operations through the Beijing Angdao
Law Firm, based at a smart address in an apartment complex overlooking the
Chinese capital’s Olympic Park and iconic Bird’s Nest Stadium.

Mr Devillers is thought to have moved back to France in 2008. Angdao Law’s
boss, who gave his name only as Mr Li and described himself as friend of Mr
Devillers, said: “He no longer works here, or visits. I think he went back
to France.”

In the meantime, Mrs Gu continued to pursue her work through Angdao Law,
introducing foreign business clients to China’s senior party leaders and
further enriching herself and her husband.

Mr Heywood met Mr Bo in the 1990s after writing to him to ask for help
pursuing business opportunities in China and promising to bring foreign
investment to Chongqing.

He soon became part of Bo Xilai’s trusted inner circle and as such managed to
broker a deal between the Chinese authorities and the British government for
the release of Matthew Bennett, a senior executive with Aston Martin, the
luxury car manufacturer, who had been prevented from leaving the country for
almost seven months in 2007 following a trade dispute.

The Old Harrovian is understood to have grown concerned about his safety after
a dispute with Mrs Gu last year, in which she suspected that he was
preparing to reveal details of the family’s business activities. Shortly
before his death, Mr Heywood is thought to have handed the dossier to his
British lawyer as his “insurance policy”, in case the worst should happen to
him. Its actual contents – along with the identity of the lawyer – remains a
mystery. But one thing is in little doubt – such an act would have been
regarded as a gross betrayal.

* Additional reporting by Peter Simpson in Beijing, Malcolm Moore in
Chongqing and Peter Allen in Besancon

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