Sword of the Shia

How the Mahdi Army Works
For now, sadr and his mahdi army have the initiative. They can stir up trouble without much fear of retribution. A case in point: When kidnappers grabbed an Iraqi-American translator in Baghdad last month, U.S. soldiers sealed off the Sadr City neighborhood where they believed he was being held. But Prime Minister Maliki--who depends on Sadr for political support--quickly ordered the Americans to remove their roadblocks. Maliki has also forced the U.S. military to release men picked up during raids in Sadr City on suspicion of belonging to Shiite death squads.

When the U.S. fails to respond to provocation, it loses credibility. And when it does respond, it can also lose. Last week, before the massive car-bomb attacks, U.S. and Iraqi forces carried out a pinprick raid in Sadr City to get intelligence on the kidnapped military translator, Ahmed Qusai al-Taayie. Like so many other U.S. military strikes in Iraq, however, it came at a price. American forces captured seven militiamen, including one who might have information on al-Taayie. But police said a young boy was among three people killed in the raid. A member of Parliament from Sadr's movement promptly showed up at the morgue, and held the corpse of the boy in his arms as he railed against the American occupation.

U.S. forces have tried hard to win hearts and minds. They've spent $120.9 million on completed construction projects in Sadr City, for instance--building new sewers and power lines--and projects worth an additional $197 million are underway. But the United States doesn't always get credit for the good works. When the Americans doled out cash to construct four health clinics in Sadr City during the past year, Sadr's men quickly removed any hint of U.S. involvement. They also put up signs giving all credit to their boss, according to Lt. Zeroy Lawson, an Army intelligence officer who works in the area.

The Mahdi Army has other sources of cash. It's taken control of gas stations throughout large parts of Baghdad, and dominates the Shia trade in propane-gas canisters, which Iraqis use for cooking. Sometimes the militiamen sell the propane at a premium, earning healthy profits; at other times they sell it at well below market rates, earning gratitude from the poor and unemployed.

A key source of Sadr's income is Muslim tithes--or khom s--collected at mosques. But his militiamen also run extortion and protection rackets--demanding money to keep certain businesses and individuals "safe." One Iraqi in a tough neighborhood, who did not want to reveal his name out of fear, says he pays the local Mahdi Army the equivalent of $13 a month for protection.

Analysts believe that Iran has also provided support to Sadr, but not much. Tehran began supplying Shia insurgents, including the Mahdi Army, with a special type of roadside bomb, using a shaped charge, in May 2005. These are often disguised as rocks and are easy to manufacture locally. But diplomats say they are made to the exact design perfected by Iranian intelligence and supplied to Lebanese Hizbullah in the 1980s.