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Thu, Aug 25 2011 Rebels to govern from Tripoli as Gaddafi hunt goes on Tweet Share this Email Print Factbox Latest developments in the Libyan conflict Thu, Aug 25 2011 Related News U.N. to allow release of $1.5 billion frozen Libya funds Thu, Aug 25 2011 Documents show Gaddafi tried to halt NATO: report Thu, Aug 25 2011 U.S. believes Libyan yellowcake, mustard agent secure Thu, Aug 25 2011 Tripoli residents dodge gunbattles to buy food Thu, Aug 25 2011 Four Italian journalists freed in Libya Thu, Aug 25 2011 Libya rebels storm Tripoli's Abu Salim district Thu, Aug 25 2011 Scotland trying to trace Lockerbie bomber in Libya Thu, Aug 25 2011 Libyan rebels won't reveal identities of Younes's killers Thu, Aug 25 2011 Gaddafi calls on Libyans to march on Tripoli Thu, Aug 25 2011 Analysis: Turkey eyes political role, deals in Libya Thu, Aug 25 2011 Analysis & Opinion Where does Libya go from here? A declining America could be a stronger America Related Topics World » United Nations » Libya » Related Video Rebels hunt for Gaddafi supporters in Tripoli Thu, Aug 25 2011 Gaddafi calls rebels "rats, crusaders and unbelievers" Rebels battle diehard Gaddafi followers Executed bodies litter Gaddafi's compound Rebels secure Tripoli airport 1 of 37. Libyan rebel fighters fire their weapons during a fight for the final push to flush out Muammar Gaddafi's forces in Abu Salim district in Tripoli August 25, 2011. Credit: Reuters/Anis Mili By Peter Graff and Ulf Laessing TRIPOLI | Fri Aug 26, 2011 1:44am EDT TRIPOLI (Reuters) - Libyan rebels announced a move to govern the country from Tripoli as they battled pockets of loyalists in their hunt for fugitive strongman Muammar Gaddafi, who taunted them from his hiding place. Rumors of Gaddafi or his sons being cornered or sighted, swirled among excitable rebel fighters engaged in heavy machinegun and rocket exchanges. But even after his compound was overrun on Tuesday, hopes of a swift end to six months of war were still being frustrated by fierce rearguard actions. Western powers have demanded Gaddafi's surrender and worked to help the opposition start developing the trappings of government and bureaucracy lacking in the oil-rich state after 42 years of an eccentric personality cult. The United States and South Africa struck a deal to allow the release of $1.5 billion in frozen funds for humanitarian aid and other civilian needs, U.N. diplomats said. But with loyalists holding out in the capital, in Gaddafi's coastal home city and deep in the inland desert, violence could go on for some time, testing the rebel government's ability to keep order when it moves from its eastern stronghold Benghazi. "I proclaim the beginning of the resumption of the work of the executive office in Tripoli," Ali Tarhouni, in charge of oil and financial matters for the rebel council, said in Tripoli. The shift is seen as a crucial step to smoothing over rifts in the country, fragmented by regional and tribal divisions, particularly between east and west. Gaddafi taunted his enemies and their Western backers, calling on his supporters to fight back in the city in his latest broadcast rallying cry. "The tribes ... must march on Tripoli," Gaddafi said in an audio message aired on a sympathetic TV channel. "Do not leave Tripoli to those rats, kill them, defeat them quickly. "The enemy is delusional, NATO is retreating," he shouted, sounding firmer and clearer than in a similar speech released on Wednesday. Though his enemies believe Gaddafi, 69, is still in the capital, they fear he could flee by long-prepared escape routes, using tunnels and bunkers, to rally an insurgency. AIR STRIKES The rebels' Colonel Hisham Buhagiar said they were targeting several areas to find Gaddafi: "We are sending special forces every day to hunt down Gaddafi. We have one unit that does intelligence and other units that hunt him down." A pro-Gaddafi station said NATO warplanes had bombed his hometown of Sirte, one his last strongholds. While Britain's defense minister said NATO was providing intelligence assets to help the rebels find Gaddafi, the U.S. State Department said neither NATO nor Washington was involved in the manhunt. Rebel leaders, offering a million-dollar reward, say the war will be over only when Gaddafi is found, "dead or alive." In a southern district of Tripoli, close to the notorious prison of Abu Salim, rebel forces launched a concerted assault, sweeping from house to house and taking prisoners. Elsewhere, pro-Gaddafi forces shelled rebel positions at Tripoli's airport. Diehards numbering perhaps in the hundreds were keeping at bay squads of irregular, anti-Gaddafi fighters who had swept into Tripoli on Sunday and who were now rushing from one site to another, firing assault rifles, machineguns and anti-aircraft cannon bolted to the backs of pick-up trucks. The lack of security will be just one of many challenges facing Libya's new masters as they try to meet the expectations of young men now bearing arms and to heal ethnic, tribal and other divisions that have been exacerbated by civil war. Speaking in Italy, the head of the rebel government, Mahmoud Jibril said the uprising, the bloodiest so far of the Arab Spring, could fall apart if funds were not forthcoming quickly: "The biggest destabilizing element would be the failure ... to deliver the necessary services and pay the salaries of the people who have not been paid for months." In an interview with Reuters, Tarhouni said the rebel government hopes to restart oil exports within two to three months and reach full volumes in about a year. REVENGE After a meeting of officials in Istanbul, the Contact Group of allies against Gaddafi called on Libyans to avoid revenge. "The participants attached utmost importance to the realization of national reconciliation in Libya," it said. "They agreed that such a process should be based on principles of inclusiveness, avoidance of retribution and vengeance." Gaddafi's opponents fear that he may rally an insurgency, as did Saddam Hussein in Iraq, should he remain at large and, perhaps, in control of funds salted away for such a purpose. Western powers, mindful of the bloodshed in Iraq, have made clear they do not want to engage their troops in Libya. But a U.S. State Department spokeswoman said Washington would look favorably on any Libyan request for U.N. police assistance -- something some say might aid a transition to democracy. The United States and NATO are also deeply concerned about possible looting and resale of weapons from Libyan arsenals as Gaddafi's rule crumbles, though the U.S. State Department said it believed Libya's stocks of concentrated uranium and mustard agent were secure. However, with fighting raging, there was already evidence of the kind of bitter bloodletting in recent days that the rebel leaders are anxious to stop in the interests of uniting Libyans, including former Gaddafi supporters, in a democracy. A Reuters correspondent counted 30 bodies, apparently of troops and gunmen who had fought for Gaddafi, at a site in central Tripoli. At least two had their hands bound. One was strapped to a hospital trolley with a drip still in his arm. All the bodies had been riddled with bullets. Elsewhere, a British medical worker said she had counted 17 bodies who she believed were of prisoners executed by Gaddafi's forces. One wounded man said he had survived the incident, when, he said, prison guards had sprayed inmates with gunfire on Tuesday as the rebel forces entered Gaddafi's compound. Nonetheless, many in Tripoli count themselves happy already that Gaddafi has gone. "I was nine years old when Gaddafi came to power and I've always hoped I wouldn't die before I saw this day," said Ali Salem al-Gharyani, choking back tears. "I am now 50 years old and this is the first time, seeing Gaddafi gone, that I have experienced true joy in my life." (Reporting by Peter Graff, Ulf Laessing, Mohammed Abbas and Samia Nakhoul in Tripoli, Robert Birsel in Benghazi, Hamid Ould Ahmed and Marie-Louise Gumuchian in Algiers, Souhail Karam in Rabat, Sami Aboudi, Omar Fahmy, Marwa Awad, Dina Zayed and Tom Pfeiffer in Cairo, Giles Elgood, Christian Lowe and Richard Valdmanis in Tunis, Silvia Aloisi in Milan, Tulay Karadeniz in Istanbul, Jon Hemming in London, and Louis Charbonneau at the United Nations in New York; Writing by Alastair Macdonald and Marie-Louise Gumuchian; Editing by Alison Williams) World United Nations Libya Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (6) RichardFillmore wrote: Maybe Gaddafi will admit defeat when he looses his fabulous clothes because, after all, clothes make the revolutionary dictator: http://www.youtube.com/watch?v=ukStzgBOYRo Aug 25, 2011 9:51pm EDT -- Report as abuse ladygoodman wrote: “I am now 50 years old and this is the first time, seeing Gaddafi gone, that I have experienced true joy in my life.” One prayer answered; a million more to go – and those are just mine. Aug 25, 2011 11:20pm EDT -- Report as abuse Krowster wrote: I just can’t help thinking about the level of weapons attrition we’re creating in that area. Losing so many weapons leaves that vicinity open to foreign invaders from their north or northeast. We should be seriously be reconsidering our tactical resources and approach in that theater. Aug 25, 2011 11:32pm EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) 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