Senator Panfilo Lacson was accused by the presidential palace of meeting a Malaysian negotiator on Wednesday to facilitate the payment of ransom for the release of hostages still held by the Abu Sayyaf in Mindanao, southern Philippines.

Lacson has endangered the lives of the hostages and the soldiers bent on rescuing them by trying to negotiate with the Abu Sayyaf bandits, said Presidential Spokesman Rigoberto Tiglao, adding Lacson might be arranging for the payment of ransom to the Abu Sayyaf.

"Lacson was violating the government's no-ransom policy," said Tiglao.

Details of the supposed secret meeting were further released after Lacson accused Tiglao of telling the media about it. Lacson said the revelation bungled his attempts.

Lacson admitted he was in Kota Kinabalu in Sabah on December 5 and 6 on the request of a Malaysian contact, former Malaysian Senator Sarin Karno, who had been in touch with the Abu Sayyaf on the fate of American hostages Martin and Gracia Burnham and Filipino nurse Ediborah Yap.

Lacson said he met Zamboanga City based Li Peng We in Sabah, to negotiate with the Abu Sayyaf leaders. He denied that he travelled to Sabah with Li Peng We, adding his companion was a Senate staff member.

"I made the trip very discreetly. In fact, in the travel authority I submitted to the Senate president, I marked the trip as secret," said Lacson.

Li and Sairin served as government negotiators for the release of 40 mostly foreign hostages who were abducted by the Abu Sayyaf Group in Malaysia's Sipadan and Philippines' Jolo from April to August last year, during the time of former president Joseph Estrada.

"Why is he sowing intrigue when my effort can help the country in terms of restoring stability and investor confidence in Mindanao?"

Lacson said, adding: "The problem with (Malacanang officials) is that whenever somebody moves to help in the release of hostages, at the back of their mind it's always about ransom. They know that they cannot release those hostages without ransom."

At the same time, Lacson said: "Do you think the Malaysians will pay for American and Filipino hostages? No. Do you think I will pay for the hostages?" He did not give more details.

"It's the President's policy that there can be no secret negotiations," said Tiglao.

President Gloria Macapagal-Arroyo said the payment of ransom had only emboldened the Abu Sayyaf to continue its kidnappings.

"You know why we have Dos Palmas (referring to abduction of 20 tourists from Palawan resort on May 27 this year)? That was Sipadan 2 (referring to the abduction of foreign tourists in Sipadan, Sabah last April 2000). If you pay ransom again now, we will have Sipadan 3, 4, 5, 6," Arroyo exclaimed.

Tiglao said Sairin also phoned him several months ago and offered to negotiate for the release of the hostages, adding the presidential palace rejected the offer, suspecting a collusion between the Malaysian and the Abu Sayyaf to arrange for ransom payment.