Abu Faraj al-Liby succeeded Khalid Sheikh Mohammed as Emir of the Martyrdom Battalion in Pakistan. He was wanted for two assasination attempts on Musharraf. He been considered Al Qaeda's number three man ever since Khalid Sheikh Mohammed was apprehended. This is not mixup. The artilce from the Sunday Times is BS.
At some point, Faraj became a deputy to KSM. His contacts stretch around the world, including sleeper cells in Great Britain and the United States. He is also known as "Dr. Taufeek" (Taufiq, Taufeeq, an Arabic name meaning "prosperity"). Presumably Faraj is not the same Dr. Taufiq who routinely offers to send illicit Nigerian oil millions to e-mail recipients who provide a bank account number.
At the moment, Faraj hangs his hat in Pakistan. His extended visit to the country has been a violent one, but he's working to make the country into a more hospitable environment. Within the last year, Faraj is believed to have instigated two assassination attempts on Pakistan president Pervez Musharraf.
Faraj is usually described by the media as al Qaeda's No. 3 leader, which is somewhat misleading since the terror network doesn't have a traditional hierarchy. However, he does appear to be a high-ranking and well-connected operative, and like Khalid, it appears he has direct authority over Qaeda's many sleeper cells around the world.
While Faraj maintains a low-profile, he gets out more than bin Laden and Zawahiri. He is reputedly one of a tiny handful of people who know the exact location where bin Laden and Zawahiri are hiding out. As missed opportunities go, the Khan sting ranks up there among the biggest.
The Pakistani government is offering a reward of 20 million rupees for the capture of Faraj
I believe some in the media have gotten the two confused. Stating "#3" is disregarding relevant metrics of importance.