US citizen beheaded in revenge for prisoner abuse

A VIDEO posted on an Islamic militant website appears to show a group affiliated with al-Qaida beheading a US contractor in Iraq, saying the death was revenge for the prisoner-abuse scandal.

The video showed five men wearing headscarves and black ski masks, standing over a bound man in an orange jumpsuit who identified himself as Nick Berg, a US contractor whose body was found near a highway overpass in Baghdad on Saturday.

"My name is Nick Berg, my father's name is Michael, my mother's name is Susan," he said "I have a brother and sister, David and Sarah. I live in Philadelphia."

After reading a statement, the men were seen pulling the man to his side and putting a large knife to his neck. A scream sounded as the men cut his head off, shouting: "Allahu Akbar!" "God is great."

They then held the head out before the camera.

"For the mothers and wives of American soldiers, we tell you that we offered the US administration to exchange this hostage with some of the detainees in Abu Ghraib and they refused," one of the men read from a statement.

"So we tell you that the dignity of the Muslim men and women in Abu Ghraib and others is not redeemed except by blood and souls.

"You will not receive anything from us but coffins after coffins ... slaughtered in this way."

The video bore the title: "Abu Musab al-Zarqawi shown slaughtering an American." It was unclear whether al-Zarqawi a lieutenant of Osama bin Laden was shown in the video or claimed responsibility for the murder.

The website on which the video was posted is known as a clearing house for al-Qaida and Islamic extremist groups' statements and tapes.

In the video, the speaker says: "How can a free Muslim sleep well as he sees Islam slaughtered and its dignity bleeding, and the pictures of shame and the news of the devilish scorn of the people of Islam men and women in the prison of Abu Ghraib?"

The speaker also threatened US President George W Bush and Pakistani President General Pervez Musharraf.

"As for you Bush ... expect severe days. You and your soldiers will regret the day you stepped into the land of Iraq," he said. He described Musharraf as "a traitor agent".