U.S. military raids Chalabi's home
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 The U.S. military raids the compound of the Iraqi National Congress and home of Iraqi Governing Council member Ahmed Chalabi.
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BAGHDAD, Iraq (CNN) -- U.S. military personnel and Iraqi police Thursday raided the compound of the Iraqi National Congress and the nearby home of Iraqi Governing Council member Ahmed Chalabi, formerly a close adviser to the Pentagon.
Chalabi aides said its part of a "smear campaign by the CIA" and U.S. Administrator Paul Bremer is trying to intimidate Chalabi because of his call for full Iraqi sovereignty and his insistence that the United Nations Food for Oil program be investigated.
Chalabi's nephew, Salim Chalabi, said the forces entered his uncle's home, put a gun to Chalabi's head and threatened him.
CNN staff on the scene saw a group of Iraqi civilians inside the compound under guard by Iraqi police and U.S. military.
In addition, an SUV was backed into the garage of the compound with people dressed in civilian clothes carrying out files from inside the headquarters.
Salim Chalabi, who serves as Iraq's war crimes prosecutor, said the U.S. military personnel and Iraqi police entered his uncle's home with their weapons drawn, and threatened Chalabi's security personnel. Describing what his uncle told him, Salim said the forces were "looking for something" and were upset with Chalabi.
The forces also cordoned off the Iraqi National Congress headquarters in a separate building nearby, taking guns away from the security there, Salim said.
Iraqi National Congress spokesman Entifadh Qanbar, speaking to CNN from Washington, said the compound was raided "in a very savage way."
"Doors were smashed despite the offer to unlock it," Qanbar said. "Computers were smashed. Even pictures on the wall were smashed. Even his holy Koran, his personal holy Koran was taken as a document."
Qanbar said Bremer ordered the raid in retaliation because Chalibi -- who is head of finance for the Iraqi Governing Council -- is pushing for an investigation of billions of dollars missing from the Oil for Food program administered by the U.N. before the Iraq war and because of his insistence on full soveriegnty for Iraq.
'This is act of aggression'
"This is an act of aggression, politically motivated against a person who's an Iraqi national, an Iraqi patriot, who's defending the rights of the Iraqi people, who's standing in the face of occupation to have full sovereignty to Iraqis."
"He's defending the issue of pursuing the Oil for Food program investigation," Qanbar said. "He's defending the full sovereignty. There are attempts to undermine sovereignty in Iraq. He's defending the issue of not accepting any ruling by any foreign entity inside Iraq. And he's been targeted for doing some things good for the Iraqi people."
"The U.S. military went on an order by Bremer," Qnabar said. "They wanted to intimidate Dr. Chalibi for defending things that Bremer did not like, such as sovereignty, such as oil for food program. They want to whitewash it because there is political motivation to bring the U.N. to Iraq."
Qanbar said the raid was part of a "smear campaign by the CIA," and not related to any investigation into what happened with money the Pentagon has given to the INC. "The funding of the Iraqi National Congress was audited many, many times and the auditing came in our favor," he said.
"This is friend, a strategic ally of the United States for many decades and this is a shameful thing," he said.
The Pentagon made a final monthly payment of $340,000 to Chalabi's INC party in May, a senior Pentagon official said.
The payments, made under under the Iraqi Liberation Act, were aimed at getting information and providing training for INC members.
But they are ending because, as of June 30, the law supporting opposition groups becomes moot due to the fact Iraq will resume sovereignty over its own affairs, the official said.
An exile who lived abroad for more than four decades, Chalabi was convicted in absentia of bank fraud in 1992 by a military court in Jordan, where he had founded a bank that failed. He says the charges were politically motivated.
The Pentagon flew him into Iraq with a group of followers after the U.S.-led invasion last year, giving him an opportunity to establish a political base.
But analysts say he has struggled to drum up support.
He is believed to have been a source of intelligence about Iraq's alleged weapons of mass destruction, which have not been discovered since Saddam's regime fell.
Chalabi was also the champion of a plan to rid Iraq of Baath Party influence that has caused rancor among many Iraqis.
But analysts say he has struggled to drum up support.
He is believed to have been a source of intelligence about Iraq's alleged weapons of mass destruction, which have not been discovered since Saddam's regime fell.
Chalabi was also the champion of a plan to rid Iraq of Baath Party influence that has caused rancor among many Iraqis.
