Several senior conservatives Iranian clerics, in recent days, issued statements and made declarations, inciting Iranians to stage anti-American-British demonstrations to condemn what they claimed to be "deliberate destruction and shelling" of holly Shi’ite shrines in Najaf and Karbala, were are buried Ali, the first imam of the Shi’ites and his second son, Hoseyn.

"Believe me, not a single bullet has hit the wall of the shrine", he said when asked to comment on the speculation that some of the Shiite holy sites, including the mausoleum of Imam Ali in Najaf had been targeted, as claimed by both the Iranian clerics and Iraqi officials.

The US military has denied striking mosques in Najaf.

Iraqi Information Minister Mohammed Sa’id al-Sahhaf said last Wednesday that US-led forces were trying to destroy the shrines of Imam Ali in Najaf and his son, Imam Hoseyn in Karbala.

Mr. Kho’i said life in Najaf was "very much back to normal" but accused Iraqi forces and militias to using residents as human shields.

"The city if very secure and very calm. Restaurants, shops and the grand bazaar are currently open and the only problem is the lack of gas and power which force shops to close earlier", he said, adding that the last remnants of Iraqi militiamen from the ruling Ba’ath party and Saddam's suicide Feda’yeen forces in the city had "either gone to hell or been captured or fled".

"Clashes between Iraqi militiamen and coalition forces were limited to the early days after US-led foray into Najaf. But local people's assistance eased up affairs very much after they reported the hide-outs of the criminals to the coalition forces," he said.

Coalition forces control all the city's entrances and exits, he said, adding there is no sign of military presence inside Najaf.

Journalists advancing with coalition forces also reported that situation in Karbala was "calm", that American forces never tried, nor intended to enter the sacred shrines, contrary to what the Iranians claim.

Iranian ayatollahs and conservatives-controlled newspapers, getting cue from the leader of the regime, Ayatollah Ali Khameneh’i, continue to paint a gloomy picture of the war, insisting that the coalition forces are suffering severe defeats at the hand of the Iraqi people and army.

But Kho’i said there were no clashes inside any of the two holly cities, which lies on a strategic way to Baghdad. "The main battle went on 25 km outside the holy city on the main road which links the two cities", he pointed out.

"Running water, which was cut a week ago after the Ba’ath forces blew off the main network upon retreat, has been re-linked since Monday morning", Mr. Kho’i added.

The city's administration has no order and all state offices are vacated and schools closed, the cleric said, adding local people were running Najaf's affairs.

"Volunteer groups of people from among the tribal heads of Najaf and other prominent figures such as traders, university professors and former state officials have been designated by the citizens to run the city's affairs", he said.