Scottish Justice Minister Kenny MacAskill said he is freeing Lockerbie Abdelbaset Ali al-Megrahi on compassionate grounds. He made a formal announcement Thursday afternoon in Edinburgh, the Scottish capital.

Al-Megrahi was convicted in 2001 of taking part in the bombing of Pan Am Flight 103 on Dec. 21, 1988. The airliner – which was carrying mostly American passengers to New York – blew up as it flew over Scotland. All 259 people aboard and 11 on the ground died when the aircraft crashed into the town of Lockerbie.

“In Scotland, we define ourselves by our humanity,” MacAskill said. “Mr. al-Megrahi did not show his victims any comfort or compassion.”

“That alone is not a reason to deny compassion to him and his family in his final days. Our justice system demands that justice be imposed but compassion be available. Our beliefs dictate that justice be shown and mercy be served.”

The former Libyan intelligence officer was sentenced to serve a minimum of 27 years in a Scottish prison for the crime, but a 2007 review of his case raised the prospect that al-Megrahi had been the victim of a miscarriage of justice, and many in Britain believe he is innocent.

Meanwhile, relations between Libya and the West have improved dramatically. Western energy companies – including Britain’s BP PLC – have moved into Libya in an effort to tap the country’s vast oil and gas wealth.

Libyan leader Moammar Gadhafi has lobbied for the return of al-Megrahi, an issue which took on an added sense of urgency when he was diagnosed with cancer last year. His lawyers say his condition is deteriorating.

The question of whether to release the 57-year-old al-Megrahi has divided Lockerbie families, with many in Britain in favor of setting him free, and many in the U.S. adamantly opposed.

American families have largely been hostile to the idea. So too has the U.S. government. Seven U.S. senators and Secretary of State Hillary Clinton have urged MacAskill not to release al-Megrahi.

(Source: CBS News)