Thailand's most wanted separatist Sapaeing Basoe has never been employed by Petronas, said the Malaysian oil firm today.

Its chief executive officer Mohd Hassan Merican ( right ) said the firm did not even know who Sapaeing was prior to a Thai Post front page report on Tuesday entitled 'Well-fed by Malaysia, Sapae-ing as adviser to Petronas'.

"He is not in our employ. We do not even know him," Hassan told reporters in Kuala Lumpur after announcing the group's financial performance.

Quoting sources, the Thai Post report claimed that Sapaeing, leader of the Barisan Revolusi Nasional-Coordinate (BRN-C), was working as a Petronas adviser with a monthly salary of about RM10,000.

Sapaeing, formerly a principal of the Thammawithaya Foundation School in Yala, has been in hiding since a Dec 17, 2004 raid on the school and the arrest of four teachers suspected of being involved in violence.

In a press statement, Petronas denied any link to Sapaeing or between him and the firm's adviser Dr Mahathir Mohamad.

Mahathir was instrumental in attempts last October to broker a peace deal between several separatist groups in the conflict and the Thai military government.

Lacks the expertise

Thailand's army chief General Sonthi Boonyaratglin had also expressed doubts that Malaysia would allow Sapaeing to be employed by Petronas.

"If Malaysian officials know about this, surely they'll take action. I don't think they want militants to live in their country," he was quoted as saying in a Bernama report yesterday.

When contacted, acquaintances of Sapaeing also expressed doubts that the Malaysian government would grant him a formal monthly stipend.

One leader of a separatist group, who has known Sapaeing since their days as students, said the latter does not have the training or background to be in such a position.

"He's just a teacher," he told malaysiakini .

Another source said Sapaeing earns his keep only by conducting a small business. "From what I know, Sapaeing is not employed by Petronas. And Petronas or the Malaysian government would not jeopordise its position by doing such a thing."

More than 2,000 people have died since violence flared up three years ago in the three Muslim-majority provinces of southern Thailand.

Separatists are seeking independence from the Buddhist-majority country, which they claim has discriminated against and oppressed its Muslim minority community.