Libya distributing money to HIV families in medic case

TRIPOLI, July 17 (Reuters) Libya has distributed funds to more than half the Libyan families of children with HIV under a deal that could free six foreign medics condemned to death for infecting them, a spokesman for the families said today.

The financial settlement may bring to a close the eight-year legal case surrounding the medics and children, as well as remove a major obstacle to Libyan leader Muammar Gaddafi's return to the international fold after years of diplomatic isolation.

''More than half of the families have received the compensation money and the remaining families would get the payout money within the next few hours,'' Idriss Lagha told Reuters.

''When all the families have received the money, a deal will be announced, likely within the next six hours, and a declaration by the families will be sent to the High Judiciary Council which will then be authorised to take the appropriate decision on the medics,'' the spokesman said.

A source close to the deal said: ''All the families have received checks for the money. But the families see the checks not the real money. For them, they will be sure of being paid only when they bring checks to the bank and cash them.'' The medical workers -- five Bulgarian nurses and a Palestinian doctor -- were sentenced to death in December after being convicted of intentionally starting an HIV epidemic at a children's hospital in the city of Benghazi.

Libya's Supreme Court last week upheld the death sentences, placing the medics' fate in the hands of the High Judicial Council, which is controlled by the government and has the power to commute sentences or issue pardons.

The Council will only rule on the fate of the medics if the children's families accept the deal.

''GREAT HOPE'' Another source close to the negotiations process said earlier: ''They are in the latest stage to complete details of implementing the deal. That stage will be reached in the next few hours, perhaps at about 3 pm (1830 IST) when an announcement would be made ... that they have a deal.'' Under the agreement, the families of at least 426 children infected with the virus that causes AIDS will receive more than 0 million, the source told Reuters.

''The families would make a statement today after the completion of the deal to authorise the High Judicial Council to take the appropriate decision,'' said the source, who did not want to be named because of the sensitive nature of the talks.

Othman Bizanti, a leading lawyer for the nurses, said he had ''great hope'' the council would decide to free the medics.

In jail since 1999, the six medics say they are innocent and that they were tortured to confess. Foreign HIV experts say the infections started before the workers arrived at the hospital and are more likely a result of poor hygiene.

Behind the scenes talks between the EU, which Bulgaria joined in January, and families of the children have been taking place for weeks and both sides have suggested a deal was close.

Bulgaria and its allies in the EU and the United States say Libya is using the medics as scapegoats to deflect criticism from its dilapidated health care sector.

They have also suggested that not freeing the nurses would carry a diplomatic cost for Libyan leader Muammar Gaddafi, who after scrapping a prohibited weapons programme in 2003 is trying to emerge from more than three decades of diplomatic isolation.

Reuters SKB GC1758