German NGO Sea-Watch, which is taking part in the multinational search and rescue operation in the Mediterranean, said the tragedy happened after its boat Sea-Watch 2 and a passing oil tanker were sent to help the distressed dinghy in the early hours.
As the rescue operation proceeded just beyond Libyan territorial waters north of the port of Sabrata, a speedboat bearing the Libyan coastguard insignia arrived and tried to steal the dinghy's outboard engine, spokesman Ruben Neugebauer told AFP.
After the assailants left, Sea-Watch said it had rescued 120 people and recovered four corpses from the water.
Other bodies were seen floating but could not be recovered and it was estimated that between 15 and 25 of the people who had been on the board were unaccounted for.
Sea-Watch said in a statement that its two speedboats had been "hassled in an aggressive way" during the attack, "preventing our crew from providing life vests and medical aid to the people in need."
The spokesman said the NGO had no way of knowing if the attackers had any contact with the Libyan coastguard or had simply hijacked one of their boats.
But he said the incident highlighted the dangers inherent in European plans to train and equip the Libyan coastguard to be able to restrict the flow of migrant boats from the conflict-torn country towards Italy.
"It is hard to know who is doing what in Libya," he said. "It shows once again it is not a good idea to build a whole European policy based on these guys. You never know whose hands the equipment will end up in."
A Libyan coastguard spokesman told AFP today they had not not been unaware of the incident involving Sea-Watch, which will send shockwaves through the humanitarian groups helping to save lives alongside navy and coastguard ships from a number of European countries.
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