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See more Images of March Follow Reuters Facebook Twitter RSS YouTube Read FL Motel Goes All-Nude to Boost Bottom Line 30 Apr 2012 Exclusive: Bo's wife dressed as Chinese army general after Heywood death: source 4:07am EDT Microsoft buys Nook stake, Barnes & Noble shares soar | 30 Apr 2012 As America's waistline expands, costs soar 30 Apr 2012 Delta buys refinery, becoming first airline to make own fuel 30 Apr 2012 Discussed 571 George Zimmerman: Prelude to a shooting 324 Washington sues Florida city over firefighter tests 100 Suicides have Greeks on edge before election Watched Tension crests in the South China Sea Sun, Apr 29 2012 Time lapse video of World Trade Center Mon, Apr 30 2012 Windy weather makes for dramatic plane landings in Spain Thu, Apr 26 2012 Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption Sudan war reignites Fighting between Sudan and South Sudan could force a return to all-out war. Slideshow Hello Kitty airlines Eva Airlines and Sanrio launch a Hello Kitty-themed flying experience. Slideshow Exclusive: Bo's wife dressed as Chinese army general after Heywood death: source Tweet Share this Email Print Related News UK says businessman slain in China was not a spy Thu, Apr 26 2012 Bo bugged phone call to China President Hu: report Thu, Apr 26 2012 Bo's brother resigns from China Everbright board Thu, Apr 26 2012 The parallel rise of China's Bo Xilai and a business ally Wed, Apr 25 2012 Son of ousted China politician speaks out first time Wed, Apr 25 2012 Analysis & Opinion Weak exports bring double whammy for Chinese banks China bank pay is the wrong target for reform Related Topics World » China » 1 of 3. File photo of China's former Chongqing Municipality Communist Party Secretary Bo Xilai (5th L) and his wife Gu Kailai (4th L) posing for group photos at a mourning held for his father Bo Yibo, former vice-chairman of the Central Advisory Commission of the Communist Party of China, in Beijing in this January 17, 2007. Credit: Reuters/Stringer By Chris Buckley BEIJING | Tue May 1, 2012 4:07am EDT BEIJING (Reuters) - A woman at the centre of China's biggest political scandal in two decades, wife of deposed political leader Bo Xilai, had once dressed as a military commander last year in a bizarre episode that shines new light on the collapse of Bo's inner circle. Bo, ambitious former leader of China's biggest municipality Chongqing, was sacked in March after police began investigating his wife, Gu Kailai, on suspicion of murdering a former family friend, British businessman Neil Heywood, in a row over money. News of Bo's removal and the murder allegation against his wife, who is a lawyer and businesswoman, emerged only a month ago, but new details uncovered by Reuters show the house of Bo was already in chaotic decline at the time of Heywood's death. The new details, provided by sources with knowledge of the police case against Gu, include that she is alleged to have poisoned Heywood after the Briton demanded a 10 percent cut for his role in organizing a large, illicit money transfer for her. A few days after Heywood was killed in Chongqing, southwest China in November, Gu strode into a meeting of police officials wearing a military uniform and gave a rambling speech in which she told the startled officials that she was on a mission to protect the city's police chief, Wang Lijun, the source said. "First she said that she was under secret orders from the Ministry of Public Security to effectively protect Comrade Wang Lijun's personal safety in Chongqing," said the source, adding that she wore a green People's Liberation Army (PLA) uniform with a major-general's insignia and bristling with decorations. "It was a mess," he said of Gu's speech, which circulated among some police and officials. "I reached the conclusion that she would be trouble." It was not clear to those present why Gu, who had never served in the military, had put on a PLA uniform or what she was trying to convey with her vow to protect Wang, the source said. The incident, on or about November 20, left the officials even more bewildered about her mental state, he added. At that time, Heywood's family had been told that there were no suspicious circumstances and that he had died of a heart attack brought on by excessive alcohol consumption. Only later did Wang begin probing Heywood's death, treating it as a poisoning and identifying Gu as chief suspect. He revealed his suspicions to Bo at an explosive meeting in January, sources said. The police chief then fled to a U.S. consulate in February, hiding inside for more than 24 hours before leaving into the custody of central government officials. Wang had been the spearhead of Bo's anti-corruption drive in Chongqing, a plank in the politician's barely concealed campaign to enter the topmost ranks of the ruling Communist Party. HEYWOOD 'DEMANDED 10 PCT' Gu's appearance in PLA uniform was part of a cascade of extraordinary events that have led to China's worst leadership crisis since the 1989 Tiananmen Square crackdown, months before the party anoints a new generation of top leaders. There had been rumors circulating in elite circles that Gu had been assigned a military rank, but officials dismissed them as an attempt to brandish her authority and background. Her uniform was of the same rank as her father's, a PLA leader who fought the Japanese occupation in the 1930s and 1940s, and might have been given to her out of "respect for her father", said a second source with knowledge of the incident. Even if Gu was somehow entitled to the uniform, which the sources doubted, the civilian setting in which she showed her apparent military rank made her performance disturbing and politically troublesome, they said. "That was clearly a violation of disciplinary rules, a serious one," said the first source with ties to Bo and his family, referring to talk among officials that Gu had assumed a military title. "Even her background gives her no right to do anything like that." Gu and the family's 32-year-old aide, Zhang Xiaojun, have been named as the main suspects in the murder of Heywood, whose body was found in a Chongqing hotel room on November 15. Chinese authorities say he was poisoned. Bo, who was suspended from the elite Politburo last month, could later face a police investigation as well. Neither Bo nor Gu has been allowed to answer the accusations in public. Heywood's family has also declined to comment. Chinese government ministries have not responded to written questions about the case against Gu. A source citing details from Wang's testimony to investigators said Gu became angry and increasingly distrustful with Heywood after he demanded "at least 10 percent" to move a large sum abroad for her. Sources had previously said Heywood demanded an unspecified proportion of the deal that Gu considered too large. "It was a large amount, probably from a dirty deal, and Heywood was also nervous about handling it," said the source. He said he did not know the size of the offshore transaction. It remains unclear how Heywood might have helped Gu shift money offshore. Chinese citizens are only allowed to transfer $50,000 out of the country each year. BO'S MISGIVINGS Long before Gu's alleged falling out with Heywood, Bo voiced misgivings about her involvement in business, according to another British businessman who had dealt with Gu and Heywood. "He hated what she was doing," said Giles Hall who dined with Heywood and the Bo family on a visit to China a decade ago, recalling a heated conversation overheard between Bo and Gu. "There was an agitated conversation going on. There were a few threats being made. We were a bit nervous. We were in this restaurant. We said (to the interpreter) 'What's the problem?' and the interpreter said 'Her husband does not like her business dealings'. So he wasn't happy with it." Hall, who was trying to tempt Bo to set up a tourism venture involving a hotair balloon, said Gu showed a ruthless streak. "You couldn't cut her up (cross her) that was for certain. She said to me 'You cross me - never come to China, you'll never get out of jail'. There was no mucking about." (Additional reporting by William Maclean in LONDON; Editing by Bill Tarrant and Mark Bendeich) World China Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (2) MrRussellCB wrote: Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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