China Aviation boss pleads guilty

The former head of China Aviation Oil (CAO) has pleaded guilty to six charges related to its near collapse in 2004.

Chen Jiulin pleaded guilty in Singapore’s subordinate court to charges including making false statements and insider trading.

Four directors at the company have already been sentenced for their part in the scandal.

CAO collapsed in 2004 after running up losses of $550m (£317m) betting against the rising price of oil.

Mr Chen had initially been facing 15 charges.

Under a plea bargaining deal he will plead guilty to six charges while the trial judge will take nine further charges into consideration.

Earlier this month, Jia Changbin, Gu Yanfei and Li Yongji were fined a total of 70,000 Singapore dollars after pleading guilty to charges of insider dealing and failing to disclose losses.

In February, former chief financial officer Peter Lim pleaded guilty to conspiring to cheat and producing false financial statements. He was jailed for two years and fined S$150,000.

CAO’s problems became one of the biggest corporate scandals to rock Singapore since the collapse of Barings Bank in the 1990s.

CAO’s losses were discovered in November 2004 when the company, which had a monopoly over China’s jet fuel market, was forced to seek court protection from creditors.

A $130m rescue package involving UK oil giant BP and state-run Singaporean investor Temasek was announced later that year.

The deal was finalised earlier in March and the company is expected to resume trading on the Singapore stock exchange later this month.