"In this incident, up until now 41,000 of the people of Bam have been killed, and there is a possibility that this could increase to 45,000. This is a great catastrophe," Mohammad Mohammadi-Gholpayghani was quoted as saying by the news agency IRNA.

The official heads the office of the supreme leader, who on Friday made his second visit to the quake-devastated city to inspect recovery and relief operations.

Previous official estimates had put the death toll at between 30,000 and 35,000, although recovery crews in Bam have continued to pull out bodies as they work to clear away the rubble from the city, 80 percent of which was flattened by the quake.

The city had close to 100,000 residents, according to official figures.

Khamenei's office also pledged that reconstruction work would be accelerated.

And a senior provincial official said police and intelligence staff were also engaged in cracking down on "opportunists" who swarmed the city to steal some of the massive amounts of aid supplies -- especially tents -- that poured into the city from across the country

"All officials have to give their full attention to Bam. Their efforts so far deserve recognition, and these efforts should be accelerated. The leader says Bam must be rebuilt, so his orders must materialise," Mohammadi-Gholpayghani was quoted as saying.

Mehdi Jahangiri, deputy governor-general in charge of planning for Kerman province, said the reconstruction of the city would take two years.

"Bam is going to be rebuilt in the same place. This decision was made by the reconstruction of Bam committee" set up by President Mohammad Khatami, Jahangiri told IRNA.

"Based on this decision, the reconstruction operation in Bam would take two years. The private sector has also been invited, but under the supervision of the government. Private companies from Iran and outside Iran can participate in reconstruction through tenders," he said.

The official also said a tough security operation was underway.

"The police and intelligence service have started the task of identifying opportunists," he said. "Since Wednesday more than 100 tents have been seized back from these people, and this trend is increasing.

"A great number of locals are cooperating to identify these opportunists," he added. "There is a probability we may give them a 24 hour deadline, and after that we will deal with them seriously."

According to IRNA, some 10,000 people unaffected by the quake have descended on Bam, posing as survivors and seeking to get their hands on tents, blankets and free food.

TERRA.WIRE