KITCHANGA, Congo — The scarlet-lettered flag flaps atop a lush green hill in an apparent declaration of ownership. Here, a rebel movement turned political party collects taxes, appoints local officials and even polices a border post.

These former rebels are accused of populating the land they have grabbed with thousands of people from neighboring Rwanda to form a mini-Tutsi state. The state-within-a-state is emerging in the shadow of Rwanda's genocide two decades ago, and is raising the specter of new violence in war-ravaged east Congo.

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