Drug Enforcement agents yesterday raided a medical marijuana dispensary in San Francisco, a week after US Attorney General Eric Holder said federal authorities would no longer prosecute providers that are not otherwise in violation of state laws.

Yesterday, agents raided Emmalyn's California Cannabis Clinic, hauling out plants and growing equipment. The dispensary, which gives out free marijuana to the poor once a week, had a temporary city permit allowing it to operate.

The DEA special agent in charge told the San Francisco Chronicle that Emmalyn's was skirting state laws as well. According to Holder's remarks last week, that would make it a candidate for federal legal action. Also:

A source in San Francisco city government who was informed about the raid said the DEA's action appeared to be prompted by alleged financial improprieties related to the payment of sales taxes. DEA Special Agent Casey McEnry, spokeswoman for the local office, would not comment on that information.

As the kevlar-vested agents removed the buds from the place, bystanders taunted them with cries of "Who is Eric Holder? He's your boss!"

Advocates of marijuana decriminalisation and of legal medical marijuana are sceptical. Marijuana Policy Project California policy director Aaron Smith said in a statement:

It is disturbing that, despite the DEA's vague claims about violations of state and federal laws, they apparently made no effort to contact the local authorities who monitor and license medical marijuana providers. For an agency that for eight years said it couldn't care less about state law to suddenly justify raids as an effort to uphold state law simply doesn't pass the smell test.

Aaron Houston, the group's director of government relations, said: