TRIPOLI - Libya's caretaker interior minister Monday dismissed as baseless reports claiming the Libyan town of Bani Walid had been taken over by supporters of former Libyan leader Muammar Gadhafi, local media reported.

Fawzy Abdel Aal attributed the fighting, beginning on Monday morning, to internal problems of the citizens in Bani Walid, 170 km south of the Libyan capital of Tripoli, saying that there is nothing in relation to the toppled leadership, according to Libyan TV.

Two parties in the oasis town, differing over issues on compensating the people affected by the unrest last year, conflicted with each other, when five people were killed, the interim minister said.

Earlier on Monday, a former National Transitional Council official of Bani Walid who gave his name as Hamza told Xinhua that supporters of former Libyan leader Muammar Gadhafi have taken over the town after fierce fighting with troops from the ruling authorities.