Saddam Trial Chief Faces Iraqi Murder Charge

Salem Chalabi, the man organising the trial of Saddam Hussein, was facing a murder charge himself last night after an Iraqi judge issued a warrant for his arrest.

Another was issued for his uncle Ahmed Chalabi, the founder of the Iraqi National Congress and a former key ally of the US. He is accused of money laundering.

Both men denied the accusations, which they said were politically motivated.

The warrants were issued as the interim prime minister, Ayad Allawi, sought to stamp his authority on the security situation in southern Iraq, flying to Najaf and ordering the fighters of the rebel Shia cleric Moqtada al-Sadr to leave.

His government also announced the reintroduction of the death penalty suspended by the US occupation authorities after the fall of Saddam.

Officials said this was one of a number of measures to impose the rule of law and stem the violence, which has shown little sign of easing since the US officially ended its occupation at the end of June.

Salem Chalabi, head of the Iraqi Special Tribunal, was named as a suspect for the murder in June of Haithem Fadhil, director general of the finance ministry. He said the allegations were designed to interfere with preparations for the trial of senior officials of the former regime.

It was unclear last night what impact the warrant would have on the trials of Saddam and other officials. Salem Chalabi, who is in London, said in February he thought it could be two years before Saddam appeared in court.

"The warrant for me has to do with the fact that apparently I threatened somebody. I have no recollection of ever meeting that person, but apparently I threatened somebody who subsequently was killed," he told CNN.

Iraq's senior investigative judge, Zuhair al-Maliky, said that nobody in Iraq should enjoy immunity. "They should be arrested and then questioned and then we will evaluate the evidence, and then if there is enough evidence, they will be sent to trial."

Ahmed Chalabi is accused of counterfeiting Iraqi dinars removed from circulation after Saddam's regime fell. The fake money was allegedly found in his house.

His spokesman, Haidar al-Moussawi, said: "Such a warrant has been issued, but no one called any of the accused or gave them a chance before issuing the arrest warrant. These are very bad indications about the state of justice and law in the new Iraq."

Both men said they would return to Iraq to face the charges.

Ahmad Chalabi, attending as conference in Tehran, told CNN: "I'm now mobilised on all fronts to rebuff all these charges.Nobody's above the law and I submit to the law in Iraq despite my serious and grave reservations about this court. I have been fighting Saddam for many years and we survived that and we are certainly not going to be intimidated by this judge."

The accusation against Ahmad Chalabi is a severe embarrassment to the US, which once considered him prime candidate to replace Saddam. Washington has attempted to distance itself from him since it was suggested that he provided faulty intelligence about Iraq's WMD capacity.

He was recently accused of informing Iran that the US had broken its secret intelligence codes. He said the allegation was "stupid".

He is wanted in Jordan, where he was sentenced in his absence in 1991 to 22 years for fraud. He denied the charge.

In Najaf, where US troops and Iraqi security forces have been fighting armed supporters of Mr Sadr, Mr Allawi said: "We hope that this thing ends as soon as possible. I believe gunmen should leave the holy sites ... quickly, lay down their weapons and return to the rule of order and law."

The fighting there has provoked clashes in Shia areas of Baghdad and several southern cities. Shortly after Mr Allawi's visit, witnesses said, fighting resumed at the cemetery, where much of the battle has raged since Thursday.

Sheikh Ahmed al-Shaybani, a spokesman for Mr Sadr in Najaf, said: "We were hoping that Mr Allawi would come here just to make the situation calm down. But, unfortunately, he has just complicated and escalated the situation by demanding that Moqtada's people leave Najaf."

· A video shown on al-Arabiya television claimed that insurgents had taken an Iranian diplomat hostage.