20091222

ANTANANARIVO (Reuters) - Madagascar's security forces fired teargas at opposition leaders and hundreds of their supporters outside parliament on Tuesday as political tensions escalated on the Indian Ocean island.

The brief flare-up happened near the national assembly where the opposition plans to form a new parliament, a process President Andry Rajoelina says is illegitimate.

The crowd was quickly dispersed, leaving a few small groups taunting the military police.

"We have lost our jobs because of the crisis but the government won't listen to us even though it preaches about democracy. It's shameful," one protester, Fanja Rakotoson, told Reuters.

Rajoelina, who seized power in March with the backing of dissident troops, deepened the turmoil over the weekend when he tore up a series of power-sharing deals and named an army colonel as prime minister.

The latest developments are likely to unsettle major foreign firms investing in Madagascar's oil and mineral resources.

Armoured riot police carrying teargas rounds and semi-automatic rifles surrounded the assembly building from early morning. Protesters used overturned garbage containers and rocks to set up barricades on roads accessing the parliament.

Emmanuel Rakotovahiny, one of two recently dismissed co-presidents, suggested that the opposition would put off its plan to recall parliament, which it had hoped to do on Tuesday.

"For it to have any purpose, the speaker of parliament must be there, but I am not sure if he will be able to enter," the close ally of former President Albert Zafy told Reuters.