Washington Post story:
Iraq Bans Security Contractor - Blackwater Faulted In Baghdad Killings
$this->bbcode_second_pass_quote('', 'T')he Iraqi government on Monday said it had revoked the license of Blackwater USA, an American security company involved in a shootout in Baghdad that killed at least nine people, raising questions over which nation should regulate tens of thousands of civilian hired guns operating in Iraq.
The Iraqi government's announcement was its most public assertion to date of its right to take action against foreign security companies when a suspected crime has been committed.
Several violent episodes involving Blackwater have infuriated Iraqi officials. An Interior Ministry spokesman, Brig. Gen. Abdul-Karim Khalaf, said the decision meant Blackwater "cannot work in Iraq any longer."
"Blackwater has made many mistakes resulting in other deaths, but this is the last and the biggest mistake. This is unjustified," Khalaf said. "Security contracts do not allow them to shoot people randomly. They are here to protect personnel, not shoot people without reason."
...Blackwater, based in North Carolina, has an estimated 1,000 employees in Iraq...
"We were shocked when we saw these fighters getting out of their SUVs and shooting randomly at people," said Sgt. Mohammed Juwad Hussein, an Iraqi army soldier who said he was manning a checkpoint in Baghdad near the scene of the fighting. "We didn't know who they were targeting or who they wanted to shoot."
The incident highlighted the murky legal space that private foreign security contractors occupy in Iraq.
Some security experts said it is unlikely that the Iraqi government could expel Blackwater because its contract is through the State Department.A regulation known as Order 17, which was established under the U.S.-led Coalition Provisional Authority headed by L. Paul Bremer and is still in effect, granted American private security contractors immunity from prosecution in Iraqi courts...
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Before Sunday's shootings, Interior Ministry officials said they had received reports of at least a half-dozen incidents in which Blackwater guards allegedly shot civilians, far more than any other company. But the officials said they were hamstrung by the immunity granted under Order 17.
"I would say that Iraqi officials are no different than other Iraqi citizens: They can't stand the Western security companies which are really aggressive, which would include Blackwater," said a second Western official knowledgeable about the Interior Ministry and who also insisted on anonymity. "Blackwater is particularly egregious, but I guess they've been told to use those procedures by the U.S. Embassy. They're not rogue elements."