ALP leadership contest drawing to a close

Mark Latham believes Anthony Albanese (pic) will emerge the victor of the Labor leadership contest. Source: AAP

LABOR has called it historic, democratic and energising, but in less than a day the month-long leadership contest between Anthony Albanese and Bill Shorten will be just one thing - over.

Both the party caucus and rank-and-file members have cast their vote for the next parliamentary leader, with ballots now closed and counting underway before Sunday's announcement.

ALP members and supporters will be the first to know the result when party headquarters sends out an email at about 2pm.

Under reforms introduced by former Prime Minister Kevin Rudd, caucus and members are given a 50-50 say in determining who will lead the fight against the Abbott government from opposition.

Mr Shorten is believed to have won the caucus vote and is "quietly confident" grassroots members will back him, while Mr Albanese will be hoping his popularity among the rank-and-file gets him over the line.

After a month of friendly debates and largely similar campaigns, both potential leaders laid low on Saturday ahead of learning their fate.

But former Labor leader Mark Latham had no qualms offering his tips, saying he believed Mr Albanese would prevail.

"I voted for Bill Shorten in the ballot and I'm hopeful he might win tomorrow, but on the balance, probably Anthony Albanese will get the job," he told the Seven Network on Saturday.

"The important thing is for Labor to get behind one leader who will be there at the next election."

Sunday's victor will be the party's seventh leader in four years, but it's hoped the new leadership process will stabilise Labor and end the revolving door of leadership.

Mr Latham said the process was designed to put the "sub-factional warlords" who control Labor's caucus out of business.

Shadow parliamentary secretary Matt Thistlethwaite, who backed Mr Shorten, said the caucus vote had been genuinely open and free of factional interference.

He didn't know who would emerge the victor, but said that was the "great beauty" of the new-look process.

"What we now can say is the Labor Party has a much more democratic, transparent and accountable system for electing our leader," he told Sky News on Saturday.

"I think overall it's been a win for the Labor Party."

About 30,000 of the party's 43,000 members are believed to have voted under the new rules, which senior Labor figures credit with renewed interest in the party in the wake of their election defeat.

ALP president Jenny McAllister said the leadership contest had been "incredibly energising".

"In the process we've also had about 4500 people make inquiries about how to join," she told the Seven network.

"People like to see us talking in positive ways about what we could contribute to the Australian public rather than tearing ourselves apart."

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'Chopper' Read to have Melbourne funeral

Crime figure turned author Mark "Chopper" Read will be sent off at a funeral in Melbourne next week. Source: AAP

CRIME figure turned author Mark "Chopper" Read will be sent off at a funeral in Melbourne next week.

Read, who died aged 58 on Wednesday after a battle with liver cancer, will be farewelled at a funeral in the inner Melbourne suburb of Clifton Hill next Thursday.

Read spent more than 23 years in jail for crimes including armed robbery, assault and kidnapping, including trying to abduct a Victorian County Court judge at gunpoint.

He once claimed he was involved in killing 19 people and the attempted murder of 11 others.

He was famously portrayed by Eric Bana in the 2000 film Chopper.

Read was also Australia's best selling true crime author, with copies of his first book Chopper: From the Inside selling more than 300,000 copies.

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Gun seized after Vic woman shot dead

A MAN who allegedly shot dead a woman at a home in Sunshine North has been charged with one count of murder.

Police charged Nelson Lai, 34, of Sunshine North, at an out-of-sessions court hearing in Melbourne.

He was remanded to appear at the Melbourne Magistrates' Court on Monday.

Paramedics were called to a house on Meadowbank Drive in Sunshine North about 9am (AEDT) on Friday to treat a woman for upper body wounds, but were unable to enter until police declared the scene safe.

By the time they reached her in a rear bedroom of the home, the woman had died.

Detective Senior Sergeant Stephen McIntyre said the Sunshine North man, who is known to police, is believed to have known the woman but the extent of their relationship is yet to be determined.

Det Sen Sgt McIntyre said police were in possession of a firearm.

Police have not revealed how many shots had been fired or how many wounds the woman, who is yet to be identified, sustained.

He said he was unsure how long paramedics had to wait before they were able to enter the house.

"The scene had to be made safe prior to their entry," Det Sen Sgt McIntyre said.

"Given the fact that there was a firearm involved in this incident they obviously had to wait for police to attend."

In a bizarre twist, the bodies of two women, one elderly and one middle-aged, were found in a house in the same street soon after the shooting, but their deaths are not being treated as suspicious.

Police said their deaths were unrelated to the shooting.

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Measles warning for WA's tourists to Bali

BALI holidaymakers have been warned to watch for measles symptoms after four West Australian travellers contracted the disease in the past week after returning from Indonesia.

The WA Health Department director of communicable disease control Paul Armstrong said people were also potentially exposed to infection at general practice surgeries where the infected cases were seen.

He said other risk areas were pathology collection centres and emergency departments at Royal Perth, Sir Charles Gairdner and Armadale-Kelmscott hospitals.

One case was contracted while working on Barrow Island in the state's north, he said.

Measles is highly infectious and is spread by airborne respiratory droplets.

Symptoms include fever, runny nose, inflamed eyes and a cough, followed by a red blotchy rash.

It is contagious for up to five days before the rash and for four days after it starts.

"Individuals who have returned from Bali or think they may have been exposed, and who develop symptoms of measles should stay away from others and promptly consult their doctor," Dr Armstrong said.

"A person is considered immune to measles if they have received two doses of the Measles Mumps Rubella (MMR) vaccine or were born before 1966."

Dr Armstrong said the incident was a reminder of the importance of adults being fully vaccinated against measles and other infectious diseases, especially before travelling overseas.

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Caucus votes on leader in Labor ballot

Labor is waiting on thousands of voting papers from rank and file members for the leadership ballot. Source: AAP

LABOR MPs have voted and the caucus ballots are under lock and key in preparation for the completion of the ALP's historic new-look leadership contest.

The MPs met in Parliament House on Thursday afternoon to cast their vote for the next parliamentary leader, with the Right's Bill Shorten tipped to get about 60 per cent of caucus support.

Rival Antony Albanese's chances now hinge on a strong showing among the vote of rank-and-file members, who have until 5pm on Friday to get their vote to returning officers.

Continuing the civil spirit of the month-long contest, the contenders walked together to the meeting.

Mr Shorten said the leadership process, which takes into account the wishes of grassroots members as well as MPs for the first time, is going a "long way towards healing" party divisions after its devastating election loss.

"Normally when you lose an election, there tends to be a bout of recriminations and a blame game," he said.

"Hopefully, in this process we've moved to absorb the lessons from the Australian public." Mr Albanese told reporters the ALP had done the right thing by "opening up to our membership, by empowering the membership".

"Three weeks after a significant election defeat, Labor is stronger, more united," he said.

Interim leader Chris Bowen said the leadership process had energised the party after its September 7 federal election defeat, with 4000 new membership applications received.

"It's an indication by Labor supporters across the country saying, 'if the Labor party is prepared to be open and inclusive, then I want to be part of the process'," Mr Bowen said.

Mr Bowen rejected claims MPs had voted along factional lines, which would make a mockery of claims the new leadership process had democratised the party.

"There were left wingers voting for Bill, right wingers voting for Anthony based on their decision about who is best placed to lead the Labor Party into the next election," he told reporters after the vote.

Labor chief whip Chris Hayes said he would keep the caucus votes under lock and key until they were tallied with the rank and file votes ahead of Sunday's announcement of the new leader.

ALP members and supporters are likely to be the first to know when party headquarters sends out an email at about 2pm.

Mr Bowen, Mr Hayes and Labor's National President Jenny McAllister will then meet the media.

Labor National Secretary George Wright said 27,000 votes had been cast so far from 43,000 members.

"I wouldn't be surprised if we get 30,000 votes to count tomorrow and Saturday," he told Sky News.

"This sort of participatory democracy, there is a big appetite for it. It will be a very good thing for our party. It's a good thing for democracy in Australia."

But senior Liberal Christopher Pyne said the ballot was another example of Labor "talking about themselves".

"They engage in this myopic discussion about Labor and who's going to be leader," he told Sky News.

"The truth is, it is just two factional warlords fighting it out, one from the left, one from the right."

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RAAF looks to high-end electronic warfare

THE RAAF is developing advanced electronic warfare capabilities to play a vital role in future operations.

RAAF chief Air Marshall Geoff Brown told an Australian Strategic Policy Institute (ASPI) dinner in Canberra that Force Level Electronic Warfare (FLEW) would involve new Growler electronic warfare aircraft and Wedgetail surveillance and control aircraft.

It could also include proposed new P-8 maritime patrol aircraft and Triton unmanned surveillance aircraft, F-35 Joint Strike Fighter aircraft and the Navy's air warfare destroyers (AWDs).

All possess significant ability to deceive, confuse or attack an enemy through electronic means.

Air Marshal Brown said these capabilities could improve current defence forces but that their real value would be to future governments.

Air Marshal Brown said FLEW could assure theatre and national operations over air, land and sea, in peace and in conflict.

"The confluence of Growler, P-8, Wedgetail, Super Hornet and JSF, Navy's Aegis-equipped AWD and Army's special force operations presents an extraordinary development for Australia. It assures relevance in operations across time," he said.

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Compo offer worthy, Bali victims say

Australian victims of terror attacks and their families are finally set to receive compensation. Source: AAP

A VICTIM of the second Bali bombings hopes compensation for victims of terrorism overseas will help the children who lose their parents.

Paul Anicich was critically injured while with a large group of families from Newcastle when the 2005 Bali bombings killed 23 people including four Australians.

He hopes retrospective compensation for terror victims announced by Prime Minister Tony Abbott on Wednesday will help children impacted by terror attacks.

From October 21, all Australian victims of terrorism overseas since the September 11, 2001 attacks will be able to apply for up to $75,000 in compensation under changes announced by the Abbott government.

Mr Abbott, who was holidaying in Bali in 2005 and helped arrange for Mr Anicich to be airlifted to Singapore for treatment, has long pushed for this compensation and had called for the Gillard government's victims of overseas terrorism compensation scheme to be retrospective.

The retrospective scheme will cover Australians affected by the 2001 attacks on New York and subsequent terrorism in Bali, Jakarta, London, Egypt, Mumbai and most recently Nairobi.

Mr Anicich hopes it helps the children left behind.

"I immediately thought of the then young children who had been left without parents, who were with us in that bombing, and the prospect that there would be some money that could help them along in their lives without parents," he told AAP.

"Even though it is seven years later it will certainly help them."

Mr Abbott fulfilled his pre-election pledge to backdate compensation when he announced the scheme after laying a wreath at the site of the 2002 Bali bombings which killed 202 people, including 88 Australians.

Standing alongside Peter Hughes, who was injured in that first Bali blast, Mr Abbott acknowledged the compensation could not change the past but said they amounted to a "measure of justice" for the victims.

"This is a modest enough acknowledgment of those who have suffered by virtue of the fact that they were Australian," he told reporters in Kuta.

He said the victims were singled out as targets "because they were westerners and their way of life was an abomination to those who wished us harm".

The scheme is expected to benefit about 300 individuals and their families and cost around $30 million, and won't replace existing benefits available to victims.

Ray Mavroudis, whose cousin David Mavroudis died in Bali in 2002, said nothing could restore their ruined lives, but Australians affected by terrorism now at least have the consolation of compensation.

"You never bring the victim back, unfortunately, but it's some sort of consolation to help their families get through it," he said.

Mr Mavroudis said more information should be given to families about counselling services available.

"Money doesn't go that far when it comes to psychological things," he said.

"Their family's lives are wrecked for the rest of their life because they've lost a loved one."

Albert Talarico, the president of the Coogee Dolphins rugby league club when six of their young players were killed in Bali in 2002, said he wasn't sure whether any of their parents would access the payments.

"But ... at least they know it's there, and that's the main thing," Mr Talarico told AAP.

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Chopper's life a "torrid" journey

Crime figure Mark "Chopper" Read has died following a battle with liver cancer, his manager says. Source: AAP

THE life of Mark "Chopper" Read was a torrid and violent journey which ended on a quiet note, those close to the once-feared criminal say.

The best-selling crime author who spent almost half his life in jail died on Wednesday after a battle with liver cancer, aged 58.

He spent more than 23 years in jail for crimes including armed robbery, assault and kidnapping, even trying to abduct a County Court judge at gunpoint.

He also claimed involvement in killing 19 people and the attempted murder of 11 others.

But in the end he died a man who lived a quiet family life and paid his taxes, his manager Andrew Parisi said.

"He worked as a writer, painter and public speaker, paid his taxes and took care of his family," he said.

Mr Parisi asked people to reflect on how Read overcame his past to find a way to re-enter society.

He said Read wished to be remembered as someone who spun a great yarn and made people laugh.

"Despite his failing health, he delighted the audience with his skills as a raconteur and storyteller," he said.

He announced he had terminal liver cancer in April 2012 and made his last public appearance a fortnight ago in front of a sold-out audience at Melbourne's Athenaeum Theatre.

Read was last freed from prison in 1998, after serving six years for inflicting grievous bodily harm on a bikie by shooting him in the chest.

Former prison chaplain Peter Norden said Read was a complex character and a loner inside jail.

"He came through the school where you had to fight to survive," Mr Norden said.

"He didn't move with a gang, much.

"He was unpredictable."

Read claimed to have been stabbed seven times, shot once, run over by a car, and gouged to the head with a claw hammer.

He had a fellow inmate cut his ears off while in prison, which he said was part of a plan to avoid an ambush at Pentridge's H division.

Mr Norden said Read would often ask to see him while in H division where he worked in the laundry yard.

"Essentially he really just wanted some stimulating conversation," he said.

Mr Norden said he was more intelligent than most people realised and knew about topics like the suppression of Jesuits throughout the world.

Read's books, beginning in 1991 with Chopper: From the Inside - which sold more than 300,000 copies alone - made him Australia's best selling true crime author.

He was also immortalised in the movie Chopper.

But he was no hero and not much chop as a crook either, having been jailed for most of his serious crimes, Mr Norden said.

The best thing that happened to him was meeting his second wife Margaret Cassar who helped him forge a reasonable life.

"In the end he lived a simple life, but he carried scars," Mr Norden said.

The fact he began reflecting on his life through writing showed he would have had regrets, he added.

But he never showed weakness because he needed to maintain a tough exterior to survive.

"He did have some happiness in his life at the end of it but it was a pretty torrid journey along the way."

Read leaves behind his wife Margaret, their son Roy and another son Charlie he had with first wife Mary-Ann Hodge who he married while in Tasmania's Risdon Prison.

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Abbott's fitness shouldn't cost public:ALP

Anthony Albanese believes Peter Slipper (pic) has been treated harshly over travel expense claims. Source: AAP

CHRIS Bowen admires Tony Abbott's fitness regime but the interim Labor leader says taxpayers shouldn't have to cover the cost of the Prime Minister showing off his sporting prowess.

Mr Abbott has repaid over $1700 claimed for travelling to the weddings of former colleagues Sophie Mirabella and Peter Slipper in 2006.

But he is defending the use of parliamentary entitlements to enter an ironman triathlon and the annual Pollie Pedal charity fundraiser.

"I believe that all of my claims have been within entitlement," he told reporters at the APEC leaders forum in Bali.

Mr Abbott claimed nearly $1300 in flights and allowances for a night at Port Macquarie in November 2011 when he competed in the ironman triathlon in the marginal NSW seat.

"I don't go to marginal seats simply for sporting events ... and I think you'll find there were quite a few other community events involved in those visits," he said.

Mr Bowen says it didn't appear Mr Abbott had participated in any other community events in Port Macquarie.

"It's good that Mr Abbott tries to keep fit ... but if he chooses to participate in an ironman event, that is in my view pretty clearly a personal issue, a personal expense, not something the taxpayer can fairly be asked to cover," he said.

Coalition ministers George Brandis and Barnaby Joyce have also repaid expenses they claimed for travel to former shock jock Michael Smith's 2011 wedding - and a clutch of others are also caught up in expense controversies.

But it's not just the government caught up in the furore.

Hours after calling for "some serious investigation" into the coalition's expenses claims, shadow attorney-general Mark Dreyfus paid back $466 he claimed for staying two nights in Canberra in August 2011 when he was actually skiing in the Snowy Mountains.

His office called it an administrative error, saying Mr Dreyfus had taken the trip on a weekend between two parliamentary sitting weeks in Canberra without his staff knowing he had left the capital.

Labor frontbencher Tony Burke said Mr Abbott shouldn't be surprised at the outcry given his "holier than thou" attitude over former speaker Peter Slipper's alleged expense rorts.

"If you're going to do the character assassination that Tony Abbott and George Brandis did on Peter Slipper, then I don't think you can be surprised when the public want to apply the same standards that these two men held up," he said.

Labor doesn't take issue with $3500 Mr Abbott claimed when taking part in the 2012 Pollie Pedal through regional Australia as it allows for engagement with community groups in towns that rarely see politicians.

Mr Abbott will take part in it again in 2014 and plans to use his allowances "to the extent that it involves being away from home".

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WA diver stable after shark attack

AN abalone diver is in a stable condition after a shark attack off a remote part of Western Australia's southern coast while the Department of Fisheries is trying to catch and kill the animal.

Greg Pickering, 55, was collecting the delicacy off Poison Creek at Cape Arid National Park, about 180km east of Esperance, when he was attacked by a white pointer shark at about 10.30am (WST) on Tuesday.

He was rushed to Esperance Hospital for treatment for bite wounds, mainly to his torso, and is being transferred to Royal Perth Hospital.

Mr Pickering also has minor injuries to his face.

His employer, Marcus Tromp of Southern Wild Abalone, said he was pleased Mr Pickering was in a stable condition after being rushed to shore from a very remote part of the ocean by his shocked colleagues.

"To be conscious and talking is very promising," Mr Tromp told AAP.

"It was colleagues helping colleagues. In diving or farming or mining, people working in the same field and close working colleagues would do the same thing."

Meanwhile, the Department of Fisheries has sent officers to the attack site and set traps after its Director General gave orders for the animal to be killed.

Mr Tromp said Mr Pickering's family was calm despite the drama.

He is believed to have been an abalone diver for over 40 years and was in 2004 reportedly bitten by a 1.5 metre bronze whaler while in waters near Cervantes, north of Perth, as he was trying to help a friend.

He reportedly put himself between his friend and the shark when it began attacking and was bitten on the leg.

The experienced spear fisherman had another close call in 2009, when the boat he was diving under in Ceduna in South Australia was capsized.

He and another deckhand were found by rescue crews in a life raft after about three hours.

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No alcohol restrictions after Darwin death

THE Northern Territory chief minister says he is not planning to impose any service or licensing restrictions to curb alcohol-fuelled violence in Darwin despite the fatal stabbing of a young man at the weekend.

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Fuel deliveries may run low

PETROL companies say nationwide fuel deliveries will be affected by an ongoing audit into the trucking company linked to a horrific smash in Sydney.

Cootes Transport has had 70 vehicles grounded because of safety failings uncovered by investigators since last week's fatal tanker crash, with 62 taken off the roads in Victoria and eight in New South Wales.

BP spokesman Jamie Jardin said supply would be disrupted during the inspections.

"We will be unable to provide customers with our normal fuel delivery service," Mr Jardin said.

"We regret that supplies will be temporarily disrupted until more trucks are returned to service."

He says BP is sourcing additional trucking capacity and redeploying resources but that spare tankers are extremely limited.

Shell Australia spokesman Paul Zennaro said in a statement his company expected fuel deliveries to improve over the course of the week as trucks return to service, adding that Shell would "prioritise deliveries of fuel to sites where it is most needed".

A 7-Eleven spokeswoman said supply was likely to affect its stores in New South Wales and Queensland but that stores in Victoria would not be affected.

A Cootes Transport fuel tanker ploughed into a power pole in Sydney on Tuesday, causing a blaze that killed two people.

VicRoads will review the company's heavy trucking licence this week once the vehicle inspections are completed.

A VicRoads spokeswoman said in a statement on Monday that vehicles would be returned to service once issues identified had been addressed.

Vicroads has inspected 170 vehicles in Victoria, while 211 vehicles have been inspected in NSW by Roads and Maritime Services and NSW Police.

Cootes has had a total 332 defect notices issued across Victoria and NSW for brake failures, steering and suspension defects.

Cootes Transport says it has withdrawn its fleet from the maintenance management scheme under the National Heavy Vehicle Accreditation Scheme (NHVAS) but will submit its vehicles to ongoing independent inspections.

NSW investigators say their probe into what caused the accident is expected to take weeks.

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Rolf Harris likely to face trial in April

Rolf Harris is scheduled to face court in London on Monday over historical child sex offences. Source: AAP

AUSTRALIAN entertainer Rolf Harris is likely to face trial in late April 2014 on 13 child sex offences, a London court has heard.

Harris, 83, was excused from attending a preliminary hearing at the Old Bailey on Monday morning.

The court heard there would be a case-management and plea hearing in mid-January before a trial, likely to start on April 30.

The artist and singer is facing six counts of indecently assaulting a 15-year-old girl in 1980 and 1981 and three charges of indecent assault on a girl aged 14 in 1986.

He is also charged with four counts of making indecent images of a child in the first half of 2012.

The court heard on Monday that the prosecution would present expert evidence in relation to computers and that the defence would also rely on expert witnesses.

A fortnight ago at his first court appearance Harris indicated through his lawyer that he would be pleading not guilty to all the charges.

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Sydney Water rejects beach pollution claim

Some of Sydney's prime swimming spots have had their water quality ratings downgraded. Source: AAP

POLLUTION on Sydney's beaches is not due to job cuts or untreated waste water being pumped into the ocean, Sydney Water says.

The latest State of the Beaches report released on Sunday found that the water quality at formerly top-ranking beaches has dropped over the past year.

While 81 per cent of swimming locations reviewed across the state achieved very good or good gradings, only eight Sydney beaches are rated as very good - down from 15 last year.

The NSW opposition blamed the drop in water quality on job and budget cuts at Sydney Water.

It also pointed to a record number of bypasses at waste-water treatment plants.

"We are returning to the bad old days when it was unsafe to swim on the beaches due to overflows," opposition water spokesman Walt Secord said in a statement.

"The O'Farrell government cannot blame rain as NSW has experienced its warmest January to September period on record. NSW has had its mildest winter in more than 150 years."

But Sydney Water rejected the comments, saying they were untrue.

"The Beachwatch 2013 Report released today shows that 37 out of 38 ocean beaches in Sydney were graded as good or very good, despite a wet summer in 2012/13, which is an outstanding result," Sydney Water said in a statement.

According to the report, among the best swimming spots in Sydney are Palm Beach, Whale Beach and Avalon on the Northern Beaches.

But neighbouring beaches Dee Why, South Curl Curl and Mona Vale have all been downgraded from the very good rating they secured last year to good.

The report states while Dee Why is suitable for swimming most of the time the water is susceptible to pollution from several sources of faecal contamination, including stormwater.

South Curl Curl and Mona Vale are also susceptible to pollution following rainfall.

Boat Harbour near Cronulla was rated poor this year for the first time.

The report linked major rainfall events over the last couple of years as a major driver of pollution to recreational waters.

Six ocean beaches impacted by contamination - including discharge from lagoons and estuaries - were graded as poor including Killick Beach at Crescent Head and Terrigal Beach on the Central Coast.

NSW Services Minister Andrew Constance said any suggestion that raw sewage was being pumped onto Sydney beaches was "an outrageous lie".

He described the city's beaches as some of the cleanest in the world.

"During rain events wastewater undergoes wet weather treatment, in which 90 per cent of the treatment processes are completed," Mr Constance said in a statement.

He rejected Labor's job cut claims, but did say Sydney Water's ageing workforce meant staff numbers were decreasing significantly through natural attrition.

NSW Services Minister Andrew Constance said any suggestion that raw sewage was being pumped onto Sydney beaches was "an outrageous lie".

He described the city's beaches as some of the cleanest in the world.

"During rain events wastewater undergoes wet weather treatment, in which 90 per cent of the treatment processes are completed," Mr Constance said in a statement.

He rejected Labor's job cut claims, but did say Sydney Water's ageing workforce meant staff numbers were decreasing significantly through natural attrition.

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Prince Harry honours fallen SAS soldiers

PRINCE Harry has honoured fallen SAS soldiers, and comforted their families, as he completed his whirlwind tour of Australia with a brief stopover in Western Australia.

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US raids terror leaders in Somalia, Libya

A Libyan militant leader, wanted by the US, has reportedly been kidnapped. Source: AAP

US forces have struck two militant targets in Africa, snatching a top Al-Qaeda suspect from the streets of Tripoli and launching a pre-dawn raid against an al-Shebab leader's home in Somalia.

In Libya, US forces seized a militant known as Abu Anas al-Libi, a long-sought Al-Qaeda operative indicted in the 1998 bombings of US embassies in Kenya and Tanzania.

A separate raid in the southern Somali port of Barawe failed to capture the senior militant and it was unclear whether he had been killed, but a US official said several Al-Qaeda-linked al-Shebab members had been slain.

It was reportedly "prompted" by the deadly militant siege on a Nairobi shopping mall last month.

The operation in Libya however appeared to be a success.

"As the result of a US counterterrorism operation, Abu Anas al-Libi is currently lawfully detained by the US military in a secure location outside of Libya," Pentagon spokesman George Little said in a statement.

A source close to Libi told AFP he was snatched by armed men in Tripoli.

Libi, who was on the FBI's most wanted list with a $US5 million ($A5.34 million) reward, was indicted in US federal court in New York for allegedly playing a key role in the east Africa bombings.

The attacks left more than 200 people dead.

His capture ended a 15-year manhunt for a key Al-Qaeda operative, who was born under the name Nazih Abdul Hamed Al-Raghie.

It also paved the way for Libi, 49, to be brought to the United States to face trial.

"We hope that this makes clear that the United States of America will never stop in its effort to hold those accountable who conduct acts of terror," said Secretary of State John Kerry on Sunday, speaking from the Indonesian island of Bali.

The action should also make clear that "those members of Al-Qaeda and other terrorist organisations literally can run, but they can't hide," said Kerry, speaking during a break from meetings of the Asia-Pacific Economic Cooperation forum.

The US raid took place in broad daylight with the knowledge of the Libyan government, a US official told CNN.

Libyan security services denied the claim, saying they were unaware of any kidnapping or arrest of the man.

According to the indictment, Libi and other Al-Qaeda members discussed attacking the US Embassy in Nairobi as early as 1993, and even took pictures of the mission.

In 1994 Libi allegedly drew up plans to attack the mission as well as a building that housed the United States Agency for International Development, as well as British, French and Israeli targets.

A US official said the operation in Somalia sought to capture a "high-value" al-Shebab leader, and that no US personnel were injured or killed.

The operation marked the most significant US assault in Somalia since commandos killed key Al-Qaeda operative Saleh Ali Saleh Nabhan in the same area four years ago.

It followed an attack by al-Shebab gunmen last month on the upscale Westgate shopping mall in Nairobi that left 67 people dead during a four-day siege.

"US personnel took all necessary precautions to avoid civilian casualties in this operation and disengaged after inflicting some Shebab casualties," the official said.

Declining to identify the people who died, the official said that "even in these extreme operational circumstances, the US military is very cautious to minimise civilian casualties."

Leaders of the Shebab in Barawe, one of the few ports left in the hands of the insurgents, said commandos rappelled from a helicopter but failed in their attempt to storm a house belonging to a senior commander.

The SEAL team approached and fired on the unidentified target's seaside villa by sea, according to The New York Times.

Although the al-Shebab leader was believed to have been killed during the assault, the SEALs had to withdraw before they could confirm the kill, a senior US official told the newspaper.

"The Barawe raid was planned a week and a half ago," a US security official told the Times.

"It was prompted by the Westgate attack."

A senior Somali government official told the newspaper that "the attack was carried out by the American forces and the Somali government was pre-informed about the attack."

Al-Shebab spokesman Abdulaziz Abu Musab told AFP that commandos had stormed the beach by boat, but blamed Britain and Turkey.

"The bungled operation was carried out by white people, who came with two small boats from a larger ship out at sea... one Shebab guard was killed, but reinforcements soon came and the foreigners fled," he said.

"Where the foreigners had been, afterwards we saw lots of blood, so maybe we wounded some."

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