As the hunt for the deposed dictator continued, the rebel leadership also offered members of his inner circle an amnesty if they turn him in.
The reward, which was put up by a wealthy Libyan businessmen, has been approved by the National Transitional Council (NTC) — the country’s de facto government — which is desperate to capture Gaddafi and bring and end to the six-month revolution.
Mustafa Abdel Jalil, who heads the council, said: “The NTC supports the initiative of businessmen who are offering two million dinars (£1 million) for the capture of Muammar Gaddafi, dead or alive.”
Gaddafi claimed to have made a “tactical” withdrawal from his Bab al-Azizia compound as the rebel forces closed in. In a message to his opponents he even claimed to have taken a discreet tour of the capital without feeling in any danger.
Throughout the day fresh fighting erupted in areas where Gaddafi was rumoured to be hiding. Rebels convinced that he had taken refuge in an underground bunker near the Rixos Hotel —close to his Bab al-Azizia compound — met heavy resistance from loyalists who have vowed to fight to the death
British security sources have said they believe he has not left the capital, but, with no public appearances for more than two months, those hunting him have begun to cast the net outside the city. It is thought he may have fled unseen, using a vast network of tunnels that snake under Tripoli.
As well as having access to underground roads and fortified bunkers, Libya sits on a 2,000-mile warren of irrigation tunnels that spread out along the coast and to the Sahara in the south.
Yesterday there was fresh fighting around Gaddafi’s home city of Sirte, about 500 miles from Tripoli, where loyalists launched Scud missiles at the rebel stronghold of Misurata. Nato forces later unleashed a series of aerial bombardments on his compound in the city.
While his options are limited, Nicaragua became the first country to formally offer him sanctuary. An adviser to Daniel Ortega, the Nicaraguan president, said that his government would consider giving him asylum if he asked for it.
Sources in Jacob Zuma’s South African government have indicated that they would be willing to help Gaddafi leave Libya, but have refused to offer him exile. Robert Mugabe’s Zimbabwe remains an option and Gaddafi also enjoys a close relationship with President Hugo Chavez of Venezuela.
William Hague, the Foreign Secretary, yesterday called on the dictator to order his troops to lay down their arms. “I think it is time now for Colonel Gaddafi to stop issuing delusional statements and recognise that control of the country is not going to return,” he said.
Rebel leaders warned that Gaddafi might try to flee Libya by dressing in womens’ clothing. Abdel Salam Jalloud, a close ally of Gaddafi who switched sides in the past week, told Al Jazeera television that Gaddafi had had a plan to drop out of sight before launching a guerrilla campaign once Nato air forces had been called off.
“He is sick with power. He believes he can gather his supporters and carry out attacks ... He is delusional. He thinks he can return to power.”
In a recorded audio address from an unknown location, Gaddafi called on the people of Tripoli to rise up and liberate the city from the rebels, who he described as “devils and traitors”.
He said: “I have been out a bit in Tripoli discreetly without being seen by people, and I did not feel that Tripoli was in danger.”
A spokesman for Gaddafi said the Libyan leader was ready to resist the rebels for months, or even years. Moussa Ibrahim told a pro-Gaddafi television network: “We will turn Libya into a volcano of lava and fire under the feet of the invaders and their treacherous agents.”
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