Off the Hook? Libya's New Status With America May Mean It Won't Pay

June 15, 2006 — -- For the families of those killed aboard Pan Am Flight 103 nearly two decades ago, the State Department's decision a month ago today to remove Libya from the State Sponsors of Terrorism list shocked them.

Many of them had hoped that Libya would finally make good on its agreement to fully compensate the victims. Now that the African country is back in America's good graces, those expectations may be dashed. Their biggest ally keeps waffling with its support.

Unpleasant Surprise

Glenn Johnson's 21-year-old daughter, Beth Ann, died aboard Pan Am Flight 103 when the plane was blown up by Libyan terrorists over Lockerbie, Scotland, in 1988. He couldn't believe it when he found out that Libya and the United States had renewed diplomatic ties.

"It didn't take long to turn to disappointment," Johnson said. "The State Department dropped the ball on this."

Johnson is the chairman of the board of the Victims of Pan Am Flight 103, an organization that represents most of the 270 victims' families. His organization, in close contact with the State Department, has been seeking monetary compensation from Libya for their losses for 18 years.

Pay Up

The victims' association and the Libyan government signed a 2003 agreement in which Libya accepted responsibility for the bombing and agreed to pay a $2.7 billion settlement to the families.

The victims' lawyers negotiated a $10 million per victim compensation to be paid in stages.

The final $2 million payment had been held in a Swiss escrow account in anticipation of Libya's removal from the terrorism sponsor list. The account has since expired, and the money was withdrawn in February 2005.

Some families said that State Department officials had told them that their agreement with Libya was a private issue and that the U.S. government could not help them. This sparked outrage among many of the families.

"The longer the meeting went, the more families got upset over what they were hearing," Johnson said.

"It was extremely disheartening," said Kara Weipz, whose brother, Ron Monetti, died aboard the flight. "As American citizens, they [the State Department] should be trying to protect us and look out for us."

She and others, however were encouraged by a June 7 unanimous Senate resolution supporting the families.

The resolution, co-sponsored by New Jersey Democratic Sen. Frank Lautenberg and North Carolina Republican Sen. Lindsey Graham, urged Secretary of State Condoleeza Rice to deny the Libyan government a full diplomatic pressence in Washington until Libya met its commitments to the victims' families.

Washington opened an embassy in Libya 15 days after the announcement, and in two weeks Libya will no longer figure among U.S. list of reviled terrorist nations.

Although the State Department had not participated in the association's negotiations with the Libyans, it has always closely supported the victims' association.

Recently, however, a State Department official did not list compensation to terrorism victims among its main concerns with Libya. Instead issues such as human rights and economic and political reform emerged as primary concerns.

"Libya has not indicated one way or another whether it will or it will not make the last payment," said Jim Kreindler, the victims' association lawyer.

Right Vs. Wrong

Other victims have said that there was not much optimism after their lawyers met with the Libyans.

Because Libya did not come off the list before the escrow account expired, the announcement technically fell outside of the timeline agreed to in the 2003 compensation settlement.

"When I got a call back from Jim [Kreindler] after the meeting, saying that legally they were correct, that really upset me," Johnson said. "There are many things that are legally correct but not morally right."

Weipz, the president and spokeswoman for the group, agreed. "We are still waiting for the right and just thing to happen, and that would be for them [the Libyans] to complete the settlement."

For now Johnson, Weipz, and the rest of the victims remain patient.

They continue to champion their cause on Capitol Hill despite time running out.

As each day passes, Libya grows closer to being officially removed from the list -- something that does not help the victims' negotiating position as Libya and the United States seek closer ties.

"We've been fighting this for 18 years, and we've never reached a point where we said 'OK, we quit. That's it. It's over,'" Johnson said.

"Do you really think the families would stop now because the Libyans haven't gotten back to us? It would've been over years ago if that were the case."