Osama supporting hostage-takers: RP defense chief

Osama supporting hostage-takers: RP defense chief

JOLO, Philippines (Agencies): Philippine Defense Secretary
Orlando Mercado accused alleged international terrorist Osama bin
Laden on Wednesday of bankrolling Filipino Muslim extremists
holding more than a dozen hostages.

The accusation came as the Abu Sayyaf guerrillas demanded $25
million for the release of the mostly foreign hostages held in
southern Jolo island.

Mercado said he could not reveal military information
detailing the alleged link between Osama and the Abu Sayyaf but
remarked that "in recent years, they were receiving funds" from
the Saudi Arabian figure, linked by the United States to the
deadly bombings of two of its embassies in Africa two years ago.

He also remarked that the Abu Sayyaf had been "boasting" of
their connection with Osama, who is believed to be hiding out in
Afghanistan after allegedly masterminding the attacks on the U.S.
embassies in Kenya and Tanzania in 1998 which killed 224 people.

Earlier on Wednesday the Philippine Daily Inquirer newspaper
quoted a former member of the Abu Sayyaf as saying that bin Laden
and his brother-in-law Mohammad Jamal Khalifa set up the
International Islamic Relief Organization (IIRO) in 1992 as a
front for funding extremist groups.

The Abu Sayyaf member, identified only as Abu Anzar, said the
IIRO worked under the Muslim World League, an organization
supported by the Saudi Arabian government.

Anzar said the relief organization, in the guise of giving
charity to local Muslim communities, provided funds to the Abu
Sayyaf for acquiring arms used in kidnappings and other attacks.
He also said Osama and Khalifa funded the "urban warfare and
terrorist training in Libya" of Abu Sayyaf members.

Philippine military intelligence reports have indicated bin
Laden was providing aid to the Abu Sayyaf and the larger Filipino
Muslim separatist group, the Moro Islamic Liberation Front
(MILF.)

And in late May, German television quoted an Abu Sayyaf
leader, Galib Andang, as saying his group was receiving financial
support from Osama.

The IIRO could not be reached for comment.

Meanwhile, government intelligence reports said on Wednesday
that the five leaders of the Abu Sayyaf agreed to a ransom of $25
million for almost all of their hostages and are discussing how
the money will be delivered to them.

The proposed ransom would cover two Germans, two French
citizens, two South Africans, two Finns, two Filipinos, three
Malaysians and a Franco-Lebanese woman seized from a Malaysian
resort on April 23 and taken to Jolo island, as well as three
French television reporters who were seized on July 9 while
seeking interviews with the hostages.

In addition, the ransom will also cover 12 Filipino
evangelists of the Jesus Miracle Crusade who have been in the Abu
Sayyaf jungle hideout since July 1 but who publicly insist they
are not being held against their will, the sources said.

On Monday, Philippine military chief General Angelo Reyes said
245 million pesos ($5.5 million) had been paid to the Abu Sayyaf
in exchange for six Malaysians, five Filipinos and a German woman
freed earlier, despite Manila's policy against ransom payments.

Lebanese Prime Minister Salim Hoss said in Beirut earlier this
week that his government accepted an offer from Libya to pay $25
million for all the hostages, with priority given to Franco-
Lebanese captive Marie Moarbes.

Meanwhile, a military spokesman in Cotabato said on Wednesday
that MILF guerrillas raided a village in the southern Philippines
and briefly held several Christian villagers as human shields
against government troops.

The government announced on Wednesday cash rewards totaling
nine million pesos ($200,000) for information leading to the
capture of three top leaders of the rebel group fighting for an
Islamic state in the mainly Catholic country.

The Department of Interior identified the three as Salamat
Hashim, chairman of the MILF, the group's military chief Al Haj
Murad and its spokesman Eid Kabalu.