basra • Thousands of Iraqis protested yesterday in the unruly southern oil city of Basra to demand the resignation of a provincial governor whom they accuse of corruption.

A large crowd of men, women and children gathered in front of the Grand Basra mosque in the heart of Iraq's second largest city under the banner of a new movement called Jamahir Al Basra (People of Basra).

Governor Mohammed Al Waeli accuses the group of being a front for his political foes — including radical cleric Moqtada Al Sadr's Mahdi Army militia — and the protest movement has raised tension in the city.

"We reject any corrupt despot who disrespects the masses," said one banner, while another read "The masses of Basra demand the resignation of Governor Mohammed Musbah Al Waeli".

Waeli is a member of the Shi’ite Al Fadhila Islamic party which is the leading political force in Basra, but less important nationally, holding only 15 seats in the 275-member Iraqi parliament.

In Basra, Fadhila is facing rising opposition from other Shiite groups such as Sadr's movement and the powerful Supreme Council of Islamic Revolution in Iraq (Sciri).

"The governor must resign and take responsibility for the deterioration of the situation in the city," protester Ali Jaber, 27, said.

Ahmed Salam, an employee of the Southern Oil Company, called the governor "a misfit" who is unacceptable to the people of Basra.

The protest was held amid tight security organised by the Iraqi army and police, while the British military said it was also closely watching the event. "We would like to see it go off peacefully," said spokesman Lieutenant Colonel Kevin Stratford-Wright, adding that coalition troops would "intervene only if we have to."

British troops based in southern Iraq come under almost daily attack from Shiite armed groups battling for control of the region's rich oil fields.