It is indeed sabotage.
Pundit embraces incoherent leading monk who's lost his cross in hamper (8)
WORDPLAY
Pundit = sage (charade)
embraces [indicator:containment]
incoherent [indicator:anagram]
leading monk = abbot (charade)
who's lost [indicator:deletion] his cross in = remove the doubled letter (b)
Therefore sage contains/embraces an anagram of abbot - b
SAbotaGE
DEFINITION
hamper = sabotage
Over to you, twyngwyn.
