Libya to pay $25-M for Sulu hostages, Western diplomat says

"Libya wants to participate in the European Mediterranean Summit" in November, a Western diplomat said, explaining why the Middle Eastern country has a deep interest in the hostage crisis in the southern Philippines.

The source told wires agency Reuters that Libya has indeed agreed to pay "$25 million" to secure the release of Abu Sayyaf hostages whose countries are members of the European Union.

Libya is willing to provide the money to gain publicity for its role and help ensure European Union backing for it to attend November's summit, the diplomat explained.

Among the hostages are five from France including three journalists, two from Germany, two from Finalnd, a South African couple, a Franco-Lebanese woman, and one Filipino. Twelve preachers belonging to the Jesus Miracle Crusade (JMC) raise the total number of remaining hostages to 25.

However, the diplomat did not specify whether the amount was a ransom or part of so-called aid to be coursed through a Libyan charitable foundation to fund livelihood projects in the southern Philippines.

The foundation is headed by one of Libyan strongman Moammar Khaddafy's sons.

Libyan and Philippine officials have denied the reported $25-million payment in exchange for the hostages.

But diplomats said that Libya needs to improve its international profile after years of isolation following the 1988 Lockerbie aircraft bombing.

Rajab Azzarouq, a former Libyan ambassador to the Philippines and a confidant of Khaddafy, is deeply involved in the negotiations.

Three Malaysian hostages and one Filipino were among the hostages released Friday, according to chief hostage crisis negotiator Robert Aventajado, who quoted fellow negotiator Lee Peng Wee.

Aventajado expressed optimism the release of all the hostages, except the JMC hostages, would begin on Saturday after days of delay.

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