Re-watching a childhood favorite

I've decided to watch the Swordsman/Xia Ao Jian Hu trilogy again, starting with the first movie, for the sake of nostalgia. However, only 4 minutes into the film and I'm already a little confused. I watched the trilogy when I was really young (the first movie came out when I was only 5, but I probably first saw it when I was in 2nd or 3rd grade.), so I'm not really sure about the plot details and what not.

In any case, my question is: who's blood is sprayed on the silk embroidery immediately before the opening credits (right after the palace officials discover the scroll has been stolen and discuss their course of action)?

Immediately before the shot with the blood being sprayed onto the embroidered cloth the younger attendant suggests finding a scapegoat. The head official doesn't seem to answer him but tells him it must have been an inside job because the palace is too well-guarded. He also instructs him not to involve too many people. The young attendant replies "I understand. To avoid complications, keep this within our own people." The older attendant says nothing during this conversation, but looks up with sorrowful eyes at the end of the conversation--right before the blood is sprayed onto the cloth.

So, is that the blood of the older attendant? And if so, why was he killed?