US says Lockerbie bomber should serve out time

Lockerbie bomber Abdelbaset Ali Mohmet al-Megrahi should serve out his full prison sentence, the U.S. state department said Thursday, after reports he could be released because he is dying.

"We're not aware that there's been a final decision," said spokesman Philip Crowley. "We have made our views clear to the UK government, to other authorities, that we believe that he should spend the rest of his time in jail."

British news media reported late on Wednesday that Britain was set to release the former Libyan agent convicted of the 1988 Lockerbie bombing on compassionate grounds. The government later denied the news.

Megrahi, who has prostate cancer, is serving life with a minimum term of 27 years over the explosion of Pan Am flight 103 over the Scottish village of Lockerbie, which killed 270 people in 1988.

The former Libyan agent is expected to be returned to his homeland following an announcement by Scottish Justice Secretary Kenny MacAskill next week, the BBC and Sky News television said, without quoting sources.

A spokesman for Scotland's First Minister Alex Salmond played down the reports, saying: "No decision has been taken, either on the application for compassionate release or the application under the prisoner transfer agreement and so it is entirely speculation."

But Frank Rubino, a U.S. lawyer who has been involved in Megrahi's defense, seemed to confirm the reports.

"I have been advised by members of the international defense team that for humanitarian reasons, (he) is being released from prison because he is suffering from a very serious, in fact fatal, disease," he said.

I have been advised by members of the international defense team that for humanitarian reasons,is being released from prison because he is suffering from a very serious, in fact fatal, disease

US lawyer Frank Rubino

Lockerbie victims' relatives

The decision to release Megrahi received mixed reactions from relatives of the Pan Am flight 103 victims. Among the relatives welcoming the news were Briton Jim Swire, whose daughter Flora died on board the plane.

He said it was "inhumane" to keep Megrahi in prison and would be "to Scotland's credit" if he was returned home.

But he said he was worried that if Megrahi was released on compassionate grounds, new evidence in his appeal which could prove his conviction was unsafe would not be aired.

Susan Cohen, whose daughter also died in the bombing, said from the U.S. state of New Jersey that if confirmed, the news would be "a disgrace."

"This man is a mass murderer," she said. "I'm sick of hearing about compassion and sympathy. If the man is ill, he can get treatment in prison. If we send him back, he'll be a hero."

Megrahi's lawyers have been following several paths in a bid to secure his release.

The Scottish government said last month that it had received an application for him to be freed on compassionate grounds.

In May, Libya applied for him to be transferred to his homeland under a prisoner transfer treaty between Libya and Britain.

Megrahi also launched a second appeal against his conviction in April after losing an earlier appeal in 2002.

The 57-year-old was diagnosed with prostate cancer last year. His lawyer says it has spread to other parts of his body and is at an advanced stage, while his wife Aisha Megrahi told AFP earlier this year that he was "in danger of dying."

This man is a mass murderer. I'm sick of hearing about compassion and sympathy. If the man is ill, he can get treatment in prison. If we send him back, he'll be a hero.

Susan Cohen, relative of a Lockerbie victim

Business opportunities

Many people in Libya expect there will be a link between Megrahi's release and prospects for British companies in Libya. BP is already a major investor, having committed $1 billion to oil and gas exploration there.

British and Libyan officials have not acknowledged a connection between Megrahi and future investment opportunities. But in a country where business success is still heavily dependent on political patronage, Megrahi's release could open the way to new investment.

British defense contractors may also see dividends. Britain is already supplying missiles and air defense systems to Tripoli under a 2007 deal.

Change will not be instant, however, in the underlying problems with investment in Libya which include an unpredictable regulatory environment, a creaking bureaucracy and uncertainty over property rights.