A DISGRUNTLED businessman strapped a fake bomb to his body and took three employees hostage at a chemicals factory over a failed $600,000 mineral deal, a court has heard.

Jean Claude Rubagire, 35, is alleged to have told employees at Alfred H Knight on Prescot Road, St Helens, he would inflict “carnage” if they didn’t follow his orders after revealing a suspected explosives device underneath his coat.

Liverpool Crown Court heard during the armed siege he took three employees to a laboratory where he repeatedly told them he had a bomb, but insisted he wasn't a “terrorist” and simply wanted “justice”.

About 200 staff were forced to flee the building, police declared a “major incident” and evacuated the surrounding area including family homes. When the stand-off eventually came to an end nearly six hours later, Army disposal experts discovered the explosive device was in fact socks and underpants.

Rubagire, of no fixed abode, denies making threats to kill, placing an article with an intent and three charges of false imprisonment.

But Janet Reaney, prosecuting, told jurors the bomb hoax was sparked by a failed business deal which Rwandan Rubagire blamed on the mineral and metal analyst firm. She detailed how Rubagire had sold $600,000 worth of the mineral tantalite, which is used in mobile phones, to a London-based company called A and M Minerals. He had used Alfred H Knight's international offices in Africa to weigh, analyse and ship the 45% pure goods. But when the shipment arrived in Singapore, the minerals were found to be only 0.1% pure and worthless.

On March 2, 2009, Rubagire flew into Heathrow from Africa and travelled to Warrington. On the morning of March 5, he turned up at the firm’s reception on Prescot Road.

Miss Reaney said: “He slowly started to unzip his jacket, calmly telling her [the receptionist] not to panic as he revealed that he was wearing a canvas webbing belt stuffed with what appeared to be explosives and told her he had a bomb. His hand was resting on what appeared to be a device for detonating.”

She told how he then summoned manager John Barr, finance manager Sandra Saddler and electrical engineer Keith Parkinson and kept them hostage as he relayed his demands. All three were released within an hour-and-a-half, but it took police negotiators nearly four hours to persuade Rubagire to come out unarmed.

The case continues.