Libya's de facto head of state Mohammed Megaryef said on Saturday that not all areas of the country have been liberated, in remarks on the first anniversary of Moammar Gadhafi's death.

"The campaign to liberate the country has not been fully completed," Megaryef, the head of Libya's powerful national assembly, said on state television.

Libyan fighters linked to the army on Friday pounded the town of Bani Walid, a former bastion of toppled strongman Moammar Gadhafi, killing at least two people, local sources said.

"We have received two people dead and 16 wounded until now," said Abdullah al-Mansouri, deputy director of Bani Walid's hospital.

Libya's top official headed for Bani Walid on Thursday to try to persuade its tribal and military leaders to allow a peaceful army takeover, a day after clashes in the former rebel bastion killed 11 people.

Ex-rebel combatants linked to the army, including many from the rival city of Misrata, attacked the oasis town on Wednesday in fighting that left at least 11 dead and dozens wounded, according to sources in both camps.

At least eleven Libyans were killed and scores wounded in clashes on Wednesday when ex-rebels linked to the army attacked Bani Walid, a former bastion of dictator Moammar Gadhafi, local sources said.

"Clashes today left four dead and 19 wounded in the ranks of Libya Shield," said a commander of the brigade which operates under the banner of the army.

New evidence implicating militias in executions after ousted Libyan dictator Moammar Gadhafi was captured and killed in Sirte last October 20 raises fresh questions over his death, a watchdog said on Wednesday.

"The evidence suggests that opposition militias summarily executed at least 66 captured members of Gadhafi's convoy in Sirte," his home town, said Peter Bouckaert, emergencies director at Human Rights Watch (HRW).

The U.S. administration has won congressional approval to devote $8 million to helping Libya develop a commando force to fight extremist groups, the New York Times reported Tuesday.

The funds would be shifted from Pentagon operations in Pakistan to help Libya develop a force to counter increasingly powerful Islamist militants, like those who attacked the U.S. consulate last month killing four Americans.

U.S. Secretary of State Hillary Clinton said Monday she takes the blame for any shortcomings in the handling of an attack last month on the U.S. mission in the Libyan city of Benghazi.

"I take responsibility," she said, according to the news networks CNN and Fox, which interviewed her during a visit to the Peruvian capital Lima.

About 120 prisoners escaped from a jail in Tripoli on Monday, National Guard chief Khaled al-Sharif told Agence France Presse, adding that Libyan security services were on high alert to catch them.

"About 120 common criminals escaped from al-Jadaida prison today. Security services are on high alert to catch them," Sharif said. "We are trying to hunt them down and some have already been arrested."

The new U.S. envoy to Tripoli vowed on Monday to follow the line of murdered ambassador Chris Stevens and support Libya as the two states work to bring the militants behind the September 11 attack to justice.

Veteran diplomat and Arabic speaker Laurence Pope, the new charge d'affaires at the embassy, had his first meeting with Libya's acting foreign minister Mohammed Abdel Aziz.

Portraits of toppled Libyan leader Moamer Kadhafi may no longer adorn the walls of Tripoli University, but it is likely to be a long time before new values and higher standards become entrenched there.

The signature red, black and green of the 2011 revolt that put an end to 42 years of stifling dictatorship now decorate the corridors. And inside the classrooms, things are also beginning to look a little different.