CAIRO, Dec. 9 (Xinhuanet) -- The Islamic Army in Iraq said in an internet statement on Thursday that they have killed a US hostage because their demands were not met.

    The internet statement said that the American security consultant was killed because the US government did not fulfill the group's demands.

    The group has demanded payment of compensation to Iraqis affected by US attacks in addition to others, according to media reports.

    "The American pig, the advisor to the ministry of housing, has been killed after the deadline has passed," said the statement, adding "we will show the images (of his execution) shortly."

    The authenticity of the statement, without pictures or video accompanied, could not be verified.

    The Islamic Army, which has claimed responsibility for several kidnappings and murders in Iraq, said in a video statement Tuesday it has kidnapped a US national and threatened to kill the hostage within 48 hours unless all prisoners in Iraq were released, reported the Qatar-based al-Jazeera TV channel.

    The video also showed the cover of a US passport and a bank card bearing the name of Ronald Schulz.

    Insurgents often kidnap foreigners in an attempt to drive out occupying forces from the war-ravaged country. Some 200 foreigners have been taken hostage since the US-led war on Iraq in March 2003. Many of them were freed, but dozens killed. Enditem