Militia attack kills 2, endangers Somalia truce

MOGADISHU, May 16 (Reuters) - Islamic militias attacked a prominent Somali warlord and killed two of his fighters on Tuesday, in clashes that could re-ignite the worst violence in Mogadishu for a decade.

Around 150 people were killed last week in an eight-day militia battle for the Somali capital that sent hundreds of terrified civilians fleeing from rockets, mortars and heavy machine guns.

The fighting halted on Sunday after clan elders demanded a truce and sent their own fighters into the worst-hit districts to try to ensure it was not violated.

But Tuesday's attack on a warlord threatened to spark a resumption of pitched battles between militias loyal to Islamic courts in Mogadishu and gunmen from a self-styled anti-terrorism alliance of powerful warlords.

"Mohamed Dheere was attacked at 4 a.m. (0100 GMT) by the Islamic court militia on a road linking Mogadishu to Bal'ad. His forces have been dispersed, but I understand they are regrouping again," Siyad Mohamed, an Islamic militia leader, told Reuters.

The fighting was confirmed by a warlords' alliance member. "He was attacked early this morning but I don't have further details," Omar Mahamud Mohamed, told Reuters by phone.

The warlords were said to be meeting in the capital to discuss their next move.

Another warlord alliance member, Ali Nur, said 100 Islamic fighters attacked Dheere using small arms but this could not immediately be confirmed. He said nine Islamic fighters were killed and only one of his militia died but Siyad Mohamed denied that.

"They are known to ... say they have killed many people. The truth is they lost two fighters and we had one wounded," he said.

Dheere and his militia had arrived from his stronghold in Jowhar at the weekend to join the fighting, which analysts view as a proxy battle between Islamist militants and Washington, widely believed to be funding the warlords.

The Islamic courts say dollars are being poured into Mogadishu to strengthen their enemies, while the warlords accuse their rivals of having links to al Qaeda.

Last week's battles were the third and by far the fiercest the two sides have waged since February.

Somalia's interim government, the 14th try at restoring central rule since dictator Mohamed Siad Barre was ousted in 1991, is not strong enough to move to Mogadishu from its base in the southern city of Baidoa.

Interim President Abdullahi Yusuf and Islamic leaders have accused Washington of backing the warlords, who call themselves the "Alliance for the Restoration of Peace and Counter-Terrorism" in what some say is a cynical ploy to get U.S. cash. (Additional reporting by Guled Mohamed in Nairobi)