Jeffrey Epstein's telecoms specialist will swear on oath that he saw Prince Andrew groping Virginia Giuffre on the billionaire's 'Paedo Island', it was claimed last night.

Steve Scully claims to have witnessed the Duke of York kissing and grinding against a blonde woman wearing a bikini - whom he insists was Andrew's sex accuser - by a swimming pool on Little Saint James between 2001 and 2004.

It comes after sources close to Ms Giuffre suggested the 'arrogant' prince has woefully underestimated the severity of the case against him.

Mr Scully, 71, told : 'I was working on the phone and he (Andrew) was by the pool with Virginia. As soon as I saw him, I recognised him.

'I thought, 'If I had a camera in my bag right now, I'd have a $50,000 picture'.'

He added that he saw them lying on lounge chairs after 'bumping and grinding' for several minutes. 

Meanwhile, royal aides are said to have highlighted 'inconsistencies' with the Duke's account of his relationship with Ms Giuffre.