The funeral procession started at the Iraqi Embassy in Tehran, said Haitham al-Husseini, a senior official with al-Hakim's office and one of his advisers.
Councillor Charlotte Haitham Taylor refused to confirm details of applications to run the other two schools, but said there had been a "variety of interest".
Mr Mousa was arrested, along with nine other Iraqis, at the Haitham Hotel in Basra on 14 September 2003 by members of the 1st Battalion The Queen's Lancashire Regiment.