The Catholic taxi driver shot dead in Co Tyrone last night appears to have been the victim of an intra-republican dispute, despite reports to the contrary.
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Earlier it was reported a loyalist group admitted killing of Mr Barney McDonald outside a snooker club at Donaghmore, near Dungannon.
However security sources say the shooting shows all the hallmarks of an IRA killing.
Police have so far refused to speculate on a motive for the shooting, but local people said they believe it may have been linked to a row among republicans, possibly some sort of feud.
Mr McDonald, who was in his 50s, was hit in the head with a shotgun blast as he sat at the wheel of his car. He died instantly.
He had been called to pick up a fare at Arthur's Snooker Club in Annaghbeg Park before 11 p.m.
It is believed that the McDonald family had been in dispute with the Provisional IRA for sometime.
Mr McDonald's son, who is now deceased, was also understood to have been knee-capped and told to leave Northern Ireland.
Sinn Féin, however, has ruled out any IRA involvement in the killing.
The Northern Ireland security minister Ms Jane Kennedy said it was a cowardly and savage attack.
"Those who carry out acts of barbarism are the enemies of the whole community," she said.
additional reporting PA