Iraqi government vows to expel Blackwater over shootings

This article from the Virginian Pilot (http://content.hamptonroads.com/story.cfm?story=132634&ran=77335&tref=po) is interesting because (1) Blackwater is based in Moyock, North Carolina, about 20 miles south of here, and (2) it illustrates the crazy amounts of money (obscene in my opinion) being paid to private contractors in Iraq, often without any competitive bidding for the work. Here are a few highlights:

The Iraqi government says eight Iraqis who died at the hands of Blackwater USA security contractors Sunday were innocent civilians. Blackwater says they were armed insurgents. Either way, the bloody incident in the streets of Baghdad promises to be a flashpoint in the brief history of Blackwater and, more broadly, in U.S.-Iraqi relations. In the wake of the gunfire, the Iraqi government vowed to expel the Moyock, N.C.-based company from Iraq and prosecute any contractors found to have used excessive force. But it was unclear Monday to what extent, if any, Iraq would be able to deliver on either pledge.

Expulsion from Iraq could be a devastating blow to Blackwater, a 10-year-old company that has rocketed to the forefront of the private military industry primarily on the strength of its diplomatic security contracts in Iraq. Those State Department contracts, which have surpassed $700 million, make up the bulk of Blackwater’s revenue. The company has about 1,000 contractors deployed in Iraq.

Iraq promised immediate action against Blackwater. “We have canceled the license of Blackwater and prevented them from working all over Iraqi territory,” Interior Ministry spokesman Abdul-Karim Khalaf said. “We will also refer those involved to Iraqi judicial authorities.” Accomplishing either of those objectives is problematic, however. It wasn’t even clear that Blackwater has an operating license from the Iraqi government, or that one is required for the company’s diplomatic protection work.

In any event, any ouster of the company from Iraq likely would require the support of the State Department, which depends on Blackwater for security. The State Department did not comment on Blackwater’s status. Diplomatic security used to be provided by military personnel, but that is one of many tasks that have been farmed out to the private sector in recent years. By one count, some 180,000 civilian contractors are now working in Iraq – more than the number of U.S. combat troops.