Wouldn't surprise me one bit. Gaddafi survived an Islamist revolt and assassination attempt in the 1995/1996 time frame. I'm sure his attitude - like that of every other Muslim government - is "better us than him". It's the same reason that Muslim governments generally release the prisoners we hand to them - unless those prisoners are guilty of attacking the regime. It's pretty clear to the Muslim masses why they would imprison someone plotting against the regime. Why would they hold someone trying to kill Americans - unless that Muslim government was just another American puppet? Note that the Iraq government has released Iraqi guerrillas who are known to have killed GI's.
I personally think it's stupid to hand these people over to Muslim governments. Why hand them over when we know they almost always have to release them in response to public pressure? It's never been a sin to kill the infidel during the process of waging a jihad. Local Muslim populations probably think Muslim governments should give returned jihadists medals and dancing girls.
I agree with that. Qaddafi and the LIFG is exibit A that proves that point.