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Last Updated: Wednesday, 8 June, 2005, 10:14 GMT 11:14 UK
China Aviation boss faces charges
Suspended China Aviation Oil chief executive Chen Jiulin
China Aviation Oil ran up trading losses of $550m under Mr Chen
Police in Singapore say they plan to press charges against Chen Jiulin, the suspended boss of crisis-hit jet fuel supplier China Aviation Oil (CAO).

Mr Chen, together with four other CAO officials, was arrested by police earlier on Wednesday.

CAO collapsed in December after running up losses of $550m (248m) betting on the future price of oil.

The trading scandal was the biggest to hit Singapore since the $1.2bn collapse of Barings Bank in 1995.

Criminal investigation

CAO sought court protection from creditors late last year, after losing money betting heavily on a fall in the price of oil at a time when prices rose sharply.

Police launched a criminal investigation into the trading losses at the time.

A spokeswoman for the city state's police force said Mr Chen would be charged in court on Thursday.

CAO's head of finance, Peter Lim Tiong Sun, and directors Jia Changbin, Li Yongji and Gu Yanfei also face charges.

Details of the charges were not given.

CAO is China's main supplier of jet fuel. Although Singapore-based, the firm is owned through a holding company by the Chinese government. In January, CAO offered to repay creditors $220m of its trading losses.




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