Scotland to rule on Lockerbie bomber

EDINBURGH (Reuters) - Scotland will say on Thursday whether it has agreed to the early release of a dying Libyan jailed for life for the 1988 Lockerbie bombing that killed 270 people, most of them Americans.

British media reports said Abdel Basset al-Megrahi, who has terminal cancer, will return to Libya on compassionate grounds, despite pressure from the U.S. government to keep him in prison.

Scottish justice minister Kenny MacAskill will make a statement on the former Libyan intelligence agent's fate at 8 a.m. EDT. The Scottish government, which has devolved powers from Britain on justice and other policies, would not confirm the reports that Megrahi will be released.

"People can be assured that the justice secretary's decisions have been reached on the basis of clear evidence and on no other factors," a government spokesman said.

Megrahi, 57, is the only person to be convicted over the bombing of Pan Am Flight 103 in mid-air above the Scottish town of Lockerbie. He lost an appeal against his conviction in 2002.

However, a Scottish review of his case ruled in 2007 that the case may have been a miscarriage of justice.

The United States and the relatives of many of the 189 American victims oppose Megrahi's early release and say he should serve his full life sentence in prison.

The families of many of the Britons killed in the bombing believe he should be allowed to go home to die. Some also say the evidence presented at his trial was too weak to find him guilty.

GADDAFI'S MOVES

If Megrahi is released on compassionate grounds, he is likely to be warmly welcomed by Libyan leader Muammar Gaddafi, who has moved closer to the Western mainstream since dropping his nuclear weapons program in 2003.

The Megrahi case has become a millstone for the Scottish government as it balances a series of competing interests, among them the fact that British oil companies are trying to do more business in Libya and hope Megrahi's release might open doors.

British oil company BP ended a 30-year absence from Libya in 2007 when it signed its biggest exploration commitment through a bilateral deal. Royal Dutch Shell also wants to tap Libya's reserves, the biggest in Africa.

OPEC member Libya plans to nearly double crude oil production by 2012 with an investment of $30-$40 billion. It also wants to increase natural gas production.

London-based Algerian lawyer Saad Djebbar, who has worked with Libya on the Lockerbie case, said the expected release of Megrahi would do Britain a "great favor."

"This will enhance relations...Britain and Scotland will grow in the eyes of the Arab states," he told the BBC. "I assure you it will help British interests." Continued...