Iraq ordered an immediate review of private security companies yesterday as the fallout spread from the death of ten Iraqis shot by American guards as they escorted US diplomats through Baghdad.

The incident threatened to undermine the already strained relations between Washington and Baghdad, and fuel resentment against foreign security guards, who are regarded by many Iraqis as trigger-happy. “The Cabinet decided to review the operations of foreign and local security companies in Iraq,” Ali al-Dabbagh, a government spokesman, said. He said that the review would investigate whether the companies operated in “compliance with Iraq law”.

The move could jeopardise the future of at least 20,000 foreign security contractors, who guard embassies and reconstruction projects, protect diplomats and aid workers and escort supply convoys. The review was ordered after American guards from the Blackwater security company opened fire in the Mansour district of Baghdad at noon on Sunday.

Iraqi sources said that at least ten people were killed and thirteen wounded by the guards. Some put the toll at twenty civilians killed. Last night the US Embassy suspended diplomatic convoys outside the green zone.

Expert View

Public anger in Iraq is growing at the behaviour of some foreign private security guards

Richard Beeston

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Blackwater insisted that its guards opened fire to protect American diplomats after their convoy was attacked by insurgents. “The civilians reportedly fired upon by Blackwater professionals were, in fact, armed enemies, and Blackwater personnel returned defensive fire,” Anne Tyrrell, a company spokeswoman, said. The Iraqi authorities said on Monday that they had suspended Blackwater’s licence pending an investigation. The company employs about 1,000 people in Iraq and has the contract to protect staff at the huge American Embassy in Baghdad.

Abdul Sattar Ghafour Bairaqdar, a member of the Supreme Judiciary Council, the country’s highest court, said that the Blackwater guards responsible could be put on trial. “This company is subject to Iraqi law and the crime committed was on Iraqi territory and the Iraqi judiciary is responsible for tackling the case,” he said.

Yesterday experts rejected the judge’s claim and said that the guards enjoyed the same immunity as American soldiers in Iraq. They are protected by Order 17, implemented in June 2004 by the Coalition Provisional Authority (the US administration then running Iraq), which exempts all foreign contractors from Iraqi law.

Sources in the private security industry said that the Iraqi review could lead to that law being rescinded.

“This Blackwater incident could be a turning point,” a British security guard in Baghdad said. Another source admitted that the foreign security guards had a “bad reputation” in Iraq and blamed Blackwater staff for being “too aggressive” with Iraqis.

Condoleezza Rice, the US Secretary of State, phoned Nouri al-Maliki, the Iraqi Prime Minister, to offer her condolences and promise a full inquiry.

Foreign contractors who are paid to protect

— At least 28 security companies operating in Iraq are contracted to US Government

— They employ up to 30,000 people

— About 27,000 work directly for the US Defence Department on tasks previously assigned to the military

— Including employees of subcontractors, there are about 127,000 security personnel in Iraq

Sources: Congressional Research Service; Brookings Institution

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