Charles Johnson links to this AFP report which says:

The Iraqi port city of Basra, already prey to a nasty turf war between rival militia factions, has now been gripped by a new fear — a giant badger stalking the streets by night.

Local farmers have caught and killed several of the beasts, but this has done nothing to dispel rumours of a bear-like monster that eats humans and was allegedly released into the area by British forces to spread panic.

Iraqi scientists have attempted to calm the public but, amid the confusion and mistrust spawned by the ongoing guerrilla war, the story has spread like wildfire in the streets of the city and the villages round about.