Philippine kidnappers: U.S. hostage 'executed'

The Abu Sayyaf has been demanding the government call off its military offensive

MANILA, Philippines (CNN) -- Kidnappers in the southern Philippines say they have killed an American hostage held by them for more than two weeks.

The claim, which has not been confirmed, was made by the leader of the Abu Sayyaf group in a call to a local radio station Tuesday morning local time.

Abu Sabaya told the Radio Mindanao Network (RMN) the kidnappers had killed the American, Guillermo Sobero, one of three U.S. nationals from a group of people kidnapped May 27 from a beach resort close to the island of Palawan.

AUDIO Journalist Cecelia Lazaro tells CNN the Philippines military will intensify their pursuit of Abu Sayyaf kidnappers, amid claims they executed a U.S. hostage 925KB/1 min 25 sec. AIFF or WAV sound

"We have executed Guillermo Sobero as a gift to the country on independence day," he said.

"They better hurry the rescue, otherwise there will be no hostages left." Sabaya said the beheading happened near the town of Tuburan on the southern island of Basilan.

In comments addressed to the Philippine military he said: "Find his body." "Remember that we have had told them so many times that we were going to behead an American," he said

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He added that the group had also cut off negotiations with the Philippines government for the release of the remaining hostages.

Execution threat

Sabaya had threatened to execute one of the Americans last Thursday and reiterated the threat to do so at noon Monday unless the Philippine government agreed to the group's demands to appoint two Malaysians -- a senator and a merchant -- to negotiate for the hostages' release.

Minutes after that deadline, presidential press secretary Rigoberto Tiglao announced the Philippine government would raise no objection to Malaysian Senator Sairin Karno negotiating for the release, providing the Malaysian government permitted Karno to do so.

He said Karno would work with a designated government intermediary, William Castillo.

Philippine President Gloria Macapagal Arroyo had previously rejected the use of any non-Filipino negotiator in what she said was an internal Philippine problem.

She has ordered thousands of troops to hunt down the 100-member kidnap gang and rescue their hostages.

Following Tiglao's announcement, Sabaya told RMN that he accepted the government's offer, provided it was sincere, and said the threat to behead the hostages had been called off.

More hostages seized

However, as this was going on gunmen belonging to the group seized 15 more people -- including two 12-year-old children.

The hostages were taken in Lantawan, near the capital of Basilan island, the rebel stronghold.

Their capture brought to 28 the number of people believed held by Abu Sayyaf.

The two Malaysians negotiators demanded by the gunmen helped negotiate a drawn out hostage crisis last year when the Abu Sayyaf seized more than 40 people from the Malaysian tourist resort of Sipadan.

The hostages were reportedly freed in return for a large ransom payment.

Government officials have said they will not negotiate for ransom, but only for the unconditional release of the hostages.

It is offering a $2 million reward for information leading to the kidnappers' capture.

Sabaya also said in an earlier radio broadcast Monday his group has ordered the rebels to sow terror on Basilan.

He said the Abu Sayyaf was demanding the military stop its operation on Basilan where thousands of troops have been searching for the hostages in the jungle-covered mountains.

The Abu Sayyaf is one of two groups fighting for a Muslim homeland in the south of the mainly Catholic country but appears to pursue kidnap as its main business.

The government says its members are mere bandits.

Muslims are a minority in the mostly Roman Catholic Philippines but are a majority in the southern islands that the Abu Sayyaf uses as a base.

The Associated Press & Reuters contributed to this report.