Bo Xilai's wife had British businessman poisoned: Official report

British businessman Neil Heywood was poisoned with cyanide on the orders of a powerful Chinese politician's wife, according to a report compiled for the Chinese government, The Daily Telegraph can disclose.

While Chinese websites have been awash with speculation about the 41 year-old's death, the report provides the first official confirmation that Mr Heywood was poisoned with a cyanide compound.

It was prepared by investigators working for government officials in Beijing and points the finger directly at Gu Kailai, the wife of Bo Xilai, the party secretary of Chongqing. Its contents led to Mrs Gu's arrest on suspicion of murder last week.

"The report says that Mr Heywood was poisoned with a compound of cyanide," said a source in Chongqing who has read the findings.

It goes on to say that Chongqing's former police chief, Wang Lijun, had found "evidence" of Mrs Gu's involvement.

Mrs Gu was arrested with Zhang Xiaojun, a member of her household. At the same time, her husband was suspended from all his duties. None of them has been seen for nearly a month.

In recent weeks, to cement support for action against the Bos, the initial findings of the investigators have been circulated within the Communist party.

The report is believed to have been assembled from a "technical police file" that was handed over by Mr Wang to American diplomats.

Mr Heywood, a vastly experienced China hand who advised Chinese and western businesses, was never given an official autopsy. His body was quickly cremated. But Mr Wang is believed to have gathered his own evidence in the 36 hours between the discovery of the body and the announcement of the death to the British authorities.

He appears to have sat on his findings, covering up Mr Heywood's death for three months while he quietly investigated who was behind it.

When his evidence pointed to Mr Bo's wife, it triggered a crisis that has split the Communist party leadership.

"The report says that Wang Lijun investigated the case and found evidence that pointed to Mrs Gu," said the source. "He then told Mr Bo about the case."

According to the narrative that is emerging, and which may be carefully controlled by the Chinese government, Mr Bo erupted in anger.

In apparent fear for his life, Mr Wang fled, driving 210 miles to the United States consulate in Chengdu, which he thought would be a safe haven.

But the US did not shelter Mr Wang and he is now thought to be in the custody of the Communist party's central discipline inspection commission in Beijing.

The source in Chongqing said that it was rumoured within the Communist party that Mr Wang may not be charged, as initially thought, with defection, which carries a ten-year sentence.

"The notice issued by the authorities said Mr Wang walked out of the consulate voluntarily. That was very clever. He was careful to stay in the consulate long enough to catch everyone's attention, but not long enough to trigger a serious charge against him," he said.

Mr Heywood's death came three days before Jeremy Browne, a Foreign Office minister, visited Mr Bo in Chongqing. Although the consulate was aware, the matter was not raised with Mr Bo by Mr Browne.

Questions remain over why British officials in Chongqing did not raise the alarm sooner over the businessman's death. But the embassy in Beijing strongly denied that it had held off for fear of upsetting the Chinese government.

Yesterday, an embassy spokesman said it remained in close touch with the Chinese authorities and with Mr Heywood's family. But he declined to comment on the findings of the initial investigation.

"We are deeply concerned at the suggestions that Mr Heywood may have been murdered. As there is an ongoing Chinese police investigation into this case, it would not be appropriate to comment further," he said. A spokesman for the Chongqing government declined to comment on the case.

Mr Heywood had close business connections to the Bo family, who sent their son Guagua to Harrow and Oxford. Mr Heywood is thought to have advised him on gaining a place at his old school.

He was also an adviser to Hakluyt, a corporate intelligence firm founded by former MI6 officers.

As the investigation continues, it has widened to encompass the Bo family's finances and its links to the People's Liberation Army.

An article in the People's Daily, the Communist party's official mouthpiece, warned that corrupt officials often use their wives, children, friends and mistresses to funnel money overseas. "Some even clandestinely gain a foreign identity or dual nationality," it said.

While the article did not name Mr Bo or his wife, it appeared squarely pointed at them. There has been speculation that Mrs Gu holds either Hong Kong or Singaporean residency, a status that is banned for Communist party officials or their families.

An investigation by Bloomberg has revealed that two of Mrs Gu's sisters, Gu Wangjiang and Gu Wangning, had control of a web of businesses worth at least pounds 80?million.

Mrs Gu is one of five daughters of Gu Jingsheng, a People's Liberation Army general. Her oldest sister, 64-year-old Gu Wangjiang, is a Hong Kong national who owns pounds 70?million of shares in an eastern Chinese printing company, according to filings at the Shenzhen stock exchange.

She and Gu Wangning serve as directors on several other companies and have made millions selling property in Hong Kong.

Meanwhile, three of the five district heads in Chongqing have now been removed from their posts, sources in the city said, and two more senior police officers, Guo Weiguo and Li Yang, have been detained for their roles in the alleged cover-up of Mr Heywood's murder, according to the South China Morning Post.