'I saw Jacko abusing Jordy'

A security guard caught Michael Jackson having oral sex with a young boy he later paid £10million, the singer's child abuse trial was told last night.

Ralph Chacon, a former employee at Jackson's Neverland ranch, said he watched through a bathroom window as the star showered with Jordy Chandler, kissed him, sucked his nipples and then performed the sex act.

In 1994, the youngster received an out-of-court settlement from the pop star worth a reported £10.6million.

A criminal prosecution against Jackson was later dropped when Jordy, then 12, refused to testify.

In the most damning evidence yet at Jackson's trial, Mr Chacon said he witnessed the incident in late 1992 or early 1993 as he did his rounds on the night shift.

He claimed he heard Jackson and Jordy - who would then have been just nine or ten - laughing together in a spa bath before they went for a shower.

He said he became curious because they were in there a long time and decided to peek through an open window to see what was happening.

'I was thinking, "What's going on in there? Grown man in the shower with a boy?" It wasn't right,' he told the court in Santa Maria, California.

The area was well lit, he added, and he saw Jackson and Jordy both standing there naked. 'Mr Jackson was caressing the boy, the boy's hair. He moved down and started kissing him,' Mr Chacon said, adding that Jackson continued down and kissed Jordy's penis.

'Did you actually see that?' asked prosecutor Tom Sneddon. 'Yes,' he replied.

Several weeks later, he claimed, he saw Jackson kiss Jordy 'passionately' on the lips and touch his groin.

Jackson, 46, denies child abuse. His defence team says Mr Chacon left Neverland on bad terms in 1994 and lost a lawsuit for wrongful dismissal. The trial continues.