MANILA, Philippines (UPDATE) The United States embassy on Monday denied reports that the US government had a $5 million reward for Abu Sayyaf Group (ASG) leader Albader Parad, who was killed in an encounter with Philippine Marines on Sunday.

"Reports of a $5 million reward being offered by the US are incorrect, but no other details available at this time," a statement from US Embassy spokesperson Rebecca Thompson said.

Western Mindanao Command (Wesmincom) chief Lt. Gen. Benjamin Dolorfino was quoted by some reports as having said that Parad had a reward of $5 million dollars for a string of kidnapping cases, including 3 humanitarian workers of the International Committee of the Red Cross (ICRC) in 2009.

However, the US embassy acknowledged the incident Sunday, where Parad and 5 other Abu Sayyaf members were killed.

"We understand that six members of the Abu Sayyaf Group were killed during an Armed Forces of the Philippines (AFP) Marine operation on Jolo on February 21 and that Philippine authorities are in the process of confirming the identities of the deceased," the US embassy said.

"We understand that one AFP Marine was killed and three Marines were wounded in this operation against ASG terrorists. We offer our heartfelt condolences to the family, friends, and colleagues of the slain marine, and our hopes for the speedy recovery of the three wounded," it said.

"We congratulate the AFP on this success. By thwarting ASG criminal and terrorist activities, the AFP improves security for residents of the Southern Philippines, allowing them to move forward toward peace, prosperity and development," it added.

On Monday, Dolorfino and Philippine Marine Corps commandant Maj. Gen. Juancho Sabban pinned Wounded Personnel Medals on three soldiers who were with the group that neutralized Parad's group.

The 3 who were given Wounded Personnel Medals were Private First Class (PFC) Joselito Carreon, Corporal Anthony Carmona, and Corporal Marcelino Landicho. Most of them sustained bullet shrapnel.

Other than the medals, they were also given certificates and comfort kits.

New strategy vs ASG working

Sabban vowed more top Abu Sayyaf commanders will fall in the next weeks and months following the death of Parad. (Read: Wounded Marines recount battle vs Parad's group)

Top Marine commanders were at Camp Navarro hospital in Zamboanga on Monday to visit the 3 Marines wounded in Sunday's encounter with the Abu Sayyaf, which led to the killing of Parad and five others in Barangay Karawan in Indanan town close to the boundary with Maiumbung town in Sulu province.

PFC Carreon had a gunshot wound, the bullet from an M-16 rifle was still in his body.

Carmona, meanwhile, had several shrapnel wounds in his arms and body while Landicho had slight shrapnel wounds on his left leg.

Dolorfino said the intelligence-driven strategy using smaller platoons, rather than division-size troops to go after the terror group, has proven to be effective.

Dolorfino and Sabban said the death of Parad will break up the sub-commander's 100-strong group within the ASG since it will now be leaderless.

Staff Sergeant Eliseo Salo was the lone soldier killed among the Marines.

Salo was on a Marine Scout Sniper Force training and was supposed to graduate from the course on February 25.

Those who take part in this course undergo two-and-a-half months of training.

The troops that participated in the operations against Parad's group were: 7th Marine Special Operation Platoon (20 to 20 men per platoon); 2 reconnaissance companies (30 men); one sniper class (30 men).

'Parad's death not the end'

Meanwhile, senators called for a more comprehensive solution to the security problem in Mindanao, saying the killing of top Abu Sayyaf leaders over the weekend would not necessarily neutralize the bandit group. (Read: Senators: Parad's death not end of Abu Sayyaf)

Senate national defense committee chair Sen. Rodolfo Biazon congratulated the Marines but said the military as well as the police should intensify pursuit operations against the Abu Sayyaf.

"This is a big gain for the military in its campaign against the terrorists,” said Biazon, a former Marines commandant and later armed forces chief of staff. “If the military further exploits the situation, they can further decimate the ranks of this Abu Sayyaf Group.”

Quoting intelligence reports, Biazon added the Abu Sayyaf appears short on ammunition.

But Senate public order committee chair Sen. Gregorio Honasan said the “body count solution” was not enough.

“We have to do more than kill everybody,” said Honasan, also a former military officer. “We have to get our act together, and the solution to that is a coordinated effort not only among the law enforcment agents but local government, the citizenry.”

Senate minority leader Aquilino Pimentel said: “Another [Albader] Parad will take his place sapagkat kapag hindi pangkalahatan ang solusyon na ino-offer ng gobyerno sa Moro problems sa Mindanao, hindi masosolve sa pamamagitan ng patayin mo yung leader because meron iba hahalili, because the root causes are not addressed.”

'Don't let guard down'

Defense Secretary Norberto Gonzales said on Monday he believes the death of Parad and 5 others is a big blow to the bandit group, but the Armed Forces of the Philippines (AFP) should continue to hunt the other leaders and members of the terrorist group. (Read: Defense chief: Don't let guard down vs Abu Sayyaf)

Gonzales said the Department of National Defense (DND) and the AFP should not let its guard down especially because the ASG is known for retaliatory attacks to avenge the killing of their members.

Gonzales said he hopes that the death of Parad would discourage other ASG members from continuing with their terroristic and criminal acts.

He also thinks that Parad's death would discourage further recruits.

For its part, AFP Public Information Chief Lt. Col. Romeo Brawner Jr. said Parad's death would probably decrease the number of kidnappings in Sulu. With reports from Ces Oreña-Drilon, Lynda Jumilla, and Jay Ruiz, ABS-CBN News