United kingdom Daily news: Neil Heywood death: Gu Kailai 'tried to smuggle Â£200k into Britain in hot air balloon deal'

Neil Heywood death: Gu Kailai 'tried to smuggle Â£200k into Britain in hot air balloon deal'

Gu Kailai struck deal with British firm to import giant balloon to China
'Tried to funnel extra cash to fund son's public school fees in the UK'
Comes as authorities prepare to release her formal confession to murder
She's accused of ordering the poisoning of Neil Heywood last November

By Simon Tomlinson

PUBLISHED: 07:56 EST, 29 April 2012 | UPDATED: 10:37 EST, 29 April 2012

New light was cast today on the murky business dealings of the Chinese woman suspected of murdering British expat Neil Heywood.

Gu Kailai has been accused of trying to bring Â£200,000 into Britain illegally to pay for her son's public school fees through a bizarre deal to import hot air balloons to China.

The revelations come as the Chinese authorities prepare to release a confession by Mrs Gu of her involvement in the murder of Mr Heywood, the victim of suspected cyanide poisoning at a hotel in Chongqing last November.

'Money-laundering' bid: Gu Kailai (left), accused of murdering British expat Neil Heywood (right), reportedly tried to covertly transfer Â£200,000 into Britain to pay for her son's education through a strange hot-air balloon deal

Murky dealings: Mrs Gu with husband Bo Xilai, the purged Communist leader of Chongqinq, and their son Bo Guagua. It is claimed Mrs Gu wanted to use the Â£200,000 to fund Guagua's public schooling in the UK

It has also emerged that Dr Andrew Harris, coroner for south London, is looking at writing to Justice Secretary Ken Clarke to request permission to hold an inquest into his death.

While living in Bournemouth in 1998, Mrs Gu entered into negotiations with Vistarama Balloon Systems, which at the time ran the 'Bournemouth Eye', a tethered balloon that offered fantastic views across the resort.

The company's boss, Giles Hall, found himself being offered potential contracts worth millions and started by supplying a single balloon for the city of Dalian, where Mrs Gu's husband, Bo Xilai, was then serving as mayor, in a deal worth Â£600,000.

Throughout their dealings, however, Mrs Gu gave her name as Horus Kai, a name she used for her business transactions in the U.S. and Britain for more than 20 years.

Career in ruins: Mr Bo, who was suspended from the Politburo after the scandal surrounding Mr Heywood's death broke, pictured with his son, Bo Guagua

LONDON LINK TO DEATH MYSTERY

Further evidence of Neil Heywood's strong links with Gu Kailai has emerged, of all places, in an Edwardian mansion block where Princess Diana, right, once lived.

A Â£1.5million apartment in Coleherne Court, a block of more than 200 properties on the border of Earl's Court and South Kensington in London, is reportedly owned by Mrs Gu.

According to The Sunday Times, neighbours say Harrow-educated Mr Heywood acted as keyholder for the two-bedroom flat on her behalf.

Reports that Mrs Gu had become Mr Heywood's mistress have been denied, but their involvement together at Coleherne Court will fuel speculation about just how far their business dealings went.

It has been alleged that Mrs Gu ordered the murder of Mr Heywood because he was threatening to reveal her overseas dealings, which involved her trying to move large amounts of money out of China through him.

Princess Diana lived at Coleherne Court before marrying Prince Charles .

She ran a firm called the Law Office of Horus L Kai, which had offices in Beijing and Shanghai, giving advice to clients looking to deal with China.

It was only after a trip to Dalian that Mr Hall says he discovered her true identity.

He said his suspicions were aroused when money began coming out of different accounts, including Mrs Gu's personal one.

But, he said, it became all-too underhand when Mrs Gu suggested paying way over the odds for an element of the deal.

Mr Hall told The Sunday Telegraph: 'We were arranging to supply a giant winch which is used to tether the balloon to the ground and then to control its ascent and descent.

'The cost of the winch was about Â£100,000... but she wanted to give us an extra Â£200,000, which she said she needed in Britain to pay for her son's school fees.

'We were taken aback. We didn't want to get involved in something like that. When we refused, she got very angry.'

Quite how the deal ended is not clear, but it reportedly did so in recrimination and Mr Hall's company was later wound up.

The balloon itself remained in Dalian for two years before being detroyed by a hurricane.

Mr Gu's son, Bo Guagua, studied English at a college in Bournemouth before securing a place at Harrow. He is now studying at Harvard University.

The business dealings of Mrs Gu came under the spotlight when it emerged that she may have ordered the poisoning of Mr Heywood, a long-time advisor and fixer for the family, because he knew too much.

'Admission': Chinese authorities are expected to release a formal confession from Mrs Gu to the murder of Mr Heywood at the Nanshan Lijing Holiday Hotel (above) in Chongqing last November

Mr Bo, who moved from Dalian to become the all-powerful leader of Chongqinq, has been been suspended from the Politburo over the death of Mr Heywood, a scandal that has rocked the country just as the once-a-decade renewal of the Communist Party's leadership approaches.

According to The Sunday Times, Chinese authorities are expected to release Mr Gu's confession in an attempt to resolve rabid speculation about Mr Heywood's demise.

Such reports include claims the 41-year-old spat out cyanide as he tried to resist his killers.

In other versions, it is said Mrs Gu admitted she was there when he was killed at the Nanshan Lijing Holiday Hotel.

Police initially claimed Mr Heywood had died from excess alcohol and his body was quickly cremated without a post-mortem.

It is claimed Mrs Gu had ordered his murder after he threatened to expose her shady business dealings.

The request by Dr Harris to hold an inquest would open the door for Scotland Yard to become involved and ask the Chinese for their investigation documents.