The hostage who was abducted in Malaysia in April 2000 has become an Abu Sayyaf leader, prompting authorities to believe he was a spy for the hostage-takers.

Roland Ullah is now the Abu Sayyaf chief in Sulu, said a Philippine military report which was released yesterday.

"We have intelligence reports indicating that Ullah was the Abu Sayyaf's contact man in Sipadan. We also know that he even suggested to the Abu Sayyaf to raise the ransom demands of the hostages, including his own," said an Army official, who quoted data from the military report. He declined to be named.

Ullah reportedly told the Abu Sayyaf to raise the ransom demands for the release of the 20 Asian and European holiday-makers, estimated at $25m.

Ullah was also abducted, but the Abu Sayyaf Group never released him.

Ullah, a Filipino Muslim who lived and worked as a dive-master in Malaysia's Sipadan island resort, was the alleged contact person of the militant group, said the report, adding he had provided information about the presence of foreigners at the resort.

The Sabah police earlier said the Abu Sayyaf Group had a contact person at the resort, who could give information on tourists in the island.

Most of the hostages were freed several months later after Malaysian, Libyan, and European non-government negotiators reportedly paid $25m to the Abu Sayyaf Group that was led by Ghalib Andang and Mujib Susukan.

The Abu Sayyaf had demanded $1m from Kuala Lumpur in exchange for the safe release of 12 Malaysian hostages.