China Aviation execs plead guilty

Three non-executive directors of China Aviation Oil (CAO) have pleaded guilty in Singapore to insider dealing charges and failing to disclose losses.

Jia Changbin, Gu Yanfei and Li Yongji now face sentencing on Thursday.

Last month, Peter Lim, CAO’s former finance chief, was given two years in prison and fined over one of Singapore’s biggest business scandals.

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

The losses were discovered in November 2004 when the company, China’s monopoly jet fuel trader, was forced to seek court protection from creditors.

A $130m rescue package saw UK oil giant BP and state-run Singaporean investor Temasek take a stake in CAO later that year.

CAO’s suspended chief executive, Chen Jiulin, is facing 15 counts of cheating and forgery while running the company and is set to go on trial this month.

Singapore-based CAO supplies oil to more than 100 Chinese airports and is majority-owned by the Chinese state.