Parties battle in Basra

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BASRA, Iraq — Governance has ground to a halt in this southern oil capital, with Basra's two largest parties arguing over the legitimacy of the provincial governor while militias and gangs take over the streets.

The bitter power struggle, gaining strength as British forces reduce their numbers and withdraw into their bases, has left grave doubts about what had been one of the most promising regions in post-invasion Iraq.

At the center of the political gridlock lies Gov. Mohammed al-Waili, the local leader of the Fadhila party, which also holds 15 seats in the National Assembly.

In May, the Basra provincial council, which is divided roughly between Fadhila and a rival party — the Supreme Iraqi Islamic Council (SIIC) — narrowly voted to remove him.

But Mr. al-Waili has refused to leave, instead appealing to Prime Minister Nouri al-Maliki. The prime minister refused at the beginning of the month to overturn the council's decision but said he did not have the constitutional authority to remove Mr. al-Waili.

Mr. al-Waili remained defiant in an interview, accusing Iran of funding and arming the SIIC.

"I don't think there is real democracy in Iraq," he said.

"It is not the first conspiracy I've faced against me," Mr. al-Waili added. "They [can't remove me] forcibly because we are stronger than they are."

Driving the dispute is a struggle for control of a $170 million annual reconstruction budget allocated to the province. Mr. al-Waili claims sole oversight over such projects, while his detractors charge that he has embezzled most of the money.

Mr. al-Waili said that "80 to 90 percent" of the planned reconstruction projects for last year had been completed, but declined to show journalists any of them.