Blackwater (now Xi)

[Magda Hassan]

Blackwater Worldwide

Xe (pronounced /ˈzi/, formerly Blackwater Worldwide & Blackwater USA), is a private military company founded in 1997 by Erik Prince [2] and Al Clark. In October 2007, Blackwater USA renamed itself Blackwater Worldwide, and was colloquially referred to simply as "Blackwater". It has alternatively been referred to as a mercenary organization by numerous reports in the international media,[3][4][5][6][7] and has a wide array of business divisions, subidiaries, and spin-off corporations.
Based in the American state of North Carolina, Xe operates a tactical training facility (36°27′19″N 76°12′09″W / 36.455359°N 76.202545°W / 36.455359; -76.202545) which the company claims is the world's largest, and at which the company trains more than 40,000 people a year, mostly from U.S. or foreign military and police services. The training consists of military offensive and defensive operations, as well as smaller scale personal security.
Xe Worldwide is currently the largest of the U.S. State Department's three private security contractors. Of the 987 contractors Xe provides, 744 are U.S. citizens.[8][9] At least 90 percent of the company's revenue comes from government contracts, of which two-thirds are no-bid contracts.[10] Xe provided security services in Iraq to the United States federal government, particularly the Department of State[1] on a contractual basis. They no longer have a presence in Iraq: the new Iraqi government made multiple attempts to expel them from their country,[11] and has denied their application for an operating license in January 2009.[12]
On February 13, 2009 the company announced that it will now operate under the name 'Xe' (pronounced 'zee'). In a memo sent to employees, President Gary Jackson wrote that the new name "reflects the change in company focus away from the business of providing private security." A spokesman for the company stated that it feels the Blackwater name is too closely associated with the company's work in Iraq.[13] Spokeswoman Anne Tyrrell said there was no meaning in the new name, which the company spent over a year to arrive at in an internal search.[14]

Corporate history


Both logos, side by side. Note the original below, with the curved Blackwater text.


In the late 1990s, Erik Prince spent part of his inherited wealth to purchase about 6,000 acres (24 km2) of the Great Dismal Swamp, a vast swamp on the North Carolina/Virginia border, now mostly a National Wildlife Refuge. Here he created his state-of-the-art private training facility, and his contracting company—Blackwater—is named for the peat-colored water of the swamp.[15] Blackwater USA was formed in 1990 to provide training support to military and law enforcement organizations. In 2002 Blackwater Security Consulting (BSC) was formed. It was one of several private security firms employed following the U.S. invasion of Afghanistan. BSC is one of over 60 private security firms employed during the Iraq War to guard officials and installations, train Iraq's new army and police, and provide other support for occupation forces.[16] Blackwater was also hired during the aftermath of Hurricane Katrina by the United States Department of Homeland Security, as well as by private clients, including communications, petrochemical and insurance companies.[17] Overall, the company has received over $1 billion USD in government contracts.[18] Blackwater consists of nine divisions, and a subsidiary, Blackwater Vehicles.

Erik Prince, Blackwater founder


Xe is a privately held company and does not publish much information about internal affairs. Xe's founder and former CEO Erik Prince, a former Navy SEAL, attended the Naval Academy, graduated from Hillsdale College, and was an intern in George H. W. Bush's White House. Prince is a major financial supporter of Republican Party causes and candidates.[19] Xe's president, Gary Jackson, is also a former Navy SEAL.[20]
Cofer Black, the company's current vice chairman, was director of the CIA's Counterterrorist Center (CTC) at the time of the September 11 attacks in 2001. He was the United States Department of State coordinator for counterterrorism with the rank of ambassador at large from December 2002 to November 2004. After leaving public service, Black became chairman of the privately owned intelligence gathering company Total Intelligence Solutions, Inc., as well as vice chairman for Xe. Robert Richer was vice president of intelligence until January 2007, when he formed Total Intelligence Solutions. He was formerly the head of the CIA's Near East Division.[21][22] Black was senior advisor for counterterrorism and national security issues for the 2008 Presidential election bid of Mitt Romney.[23]
Xe's primary training facility, located on 7,000 acres (28 km2) in northeastern North Carolina, comprises several ranges: indoor, outdoor, urban reproductions; a man-made lake; and a driving track in Camden and Currituck counties. Company literature says that it is the largest training facility in the country. In November 2006 Blackwater USA announced it recently acquired an 80-acre (30 ha) facility 150 miles (240 km) west of Chicago in Mount Carroll, Illinois to be called Blackwater North. This facility is also known as "The Site". This Xe facility has been operational since April 2007 and serves law enforcement agencies throughout the midwest. Xe is also trying to open an 824-acre (3.33 km2) training facility three miles north of Potrero, a small town in rural east San Diego County, California located 45 miles (72 km) east of San Diego, for military and law enforcement training.[24][25][26][27][26] The opening has faced heavy opposition from local residents, residents of nearby San Diego, a local Congressmember Bob Filner, and environmental and anti-war organizations. Opposition focused on a potential for wildfire increases, the proposed facility's proximity to the Cleveland National Forest, noise pollution, and opposition to the actions of Xe in Iraq.[28][29] In response, Brian Bonfiglio, project manager for Blackwater West, said "There will be no explosives training and no tracer ammunition. Lead bullets don't start fires." In October 2007, when wildfires swept through the area, Xe made at least three deliveries of food, water, personal hygiene products and generator fuel to 300 residents near the proposed training site, many of whom had been trapped for days without supplies. They also set up a "tent city" for evacuees.[30] On March 7, 2008, Blackwater withdrew its application to set up a facility in San Diego County.[citation needed]
In October 2007, Blackwater USA began a process of altering its name to Blackwater Worldwide, and unveiled a new logo.[31] A Blackwater representative stated that the decision to change the logo was made before the September 16, 2007 Nisoor Square shootings, but was not changed officially until after.[31] Many referred to the change as having eliminated the previous "cross hair" theme, replaced by a reticle instead.[31]
On July 21, 2008 Blackwater Worldwide stated that they would shift resources away from security contracting because of extensive risk in that sector. "The experience we've had would certainly be a disincentive to any other companies that want to step in and put their entire business at risk," company founder and CEO Erik Prince told The Associated Press during a daylong visit to the company's North Carolina compound.[32]
Prince announced his resignation as CEO on March 2, 2009. Prince will remain as chairman of the board but will no longer be involved in day-to-day operations. Joseph Yorio was named as the new president, replacing Gary Jackson. Danielle Esposito was named the new chief operating officer and executive vice president.[33]

Corporate structure

Blackwater Worldwide consists of nine business units:

Blackwater Training Center

Blackwater Training Center offers tactics and weapons training to military, government, and law enforcement agencies. Blackwater Training Center also offers several open-enrollment courses periodically throughout the year, from hand to hand combat (executive course) to precision rifle marksmanship. They also offer courses in tactical and off road driving.[34]
Blackwater's primary training facility, located on 7,000 acres (28 km2) in northeastern North Carolina, comprises several ranges, indoor, outdoor, urban reproductions, a man-made lake, and a driving track in Camden and Currituck counties. Company literature says that it is the largest training facility in the country. In November 2006 Blackwater USA announced it recently acquired an 80-acre (30 ha) facility 150 miles (240 km) west of Chicago, in Mount Carroll, Illinois to be called Blackwater North. That facility has been operational since April 2007 and serves law enforcement agencies throughout the midwest. Blackwater is also trying to open an 824-acre (3.33 km2) training facility three miles north of Potrero, a small town in rural east San Diego County, California located 45 miles east of San Diego, for military and law enforcement training.[24][25][26][27][35] The opening has faced heavy opposition from local residents, residents of nearby San Diego, a local Congressmember Bob Filner, and environmental and anti-war organizations. Opposition focused on a potential for wildfire increases, the proposed facility's proximity to the Cleveland National Forest, noise pollution, and opposition to the actions of Blackwater in Iraq.[28][29]. In response, Brian Bonfiglio, project manager for Blackwater West, said "There will be no explosives training and no tracer ammunition. Lead bullets don't start fires." In October 2007, when wildfires swept through the area, Blackwater made at least three deliveries of food, water, personal hygiene products and generator fuel to 300 residents near the proposed training site, many of whom had been trapped for days without supplies. They also set up a "tent city" for evacuees.[30]

Blackwater Target Systems

This division provides and maintains target range steel targets and a "shoothouse" system.[36]

Blackwater MD-530F over Republican Palace, Baghdad



Blackwater Security Consulting

Main article: Blackwater Security Consulting
Blackwater Security Consulting (BSC) was formed in 2001, and based in Moyock, North Carolina. BSC is one of the private security firms employed during the Iraq War to guard officials and installations, train Iraq's new Army and Police, and provide other support for Coalition Forces.[37]
Its primary public contract is from the U.S. State Department under the Bureau of Diplomatic Security's Worldwide Personal Protective Services (WPPS) and WPPS II umbrella contracts, along with DynCorp International and Triple Canopy, Inc. for protective services in Iraq, Afghanistan, Bosnia, and Israel.[38] [39] Blackwater's responsibilities include the United States embassy in Iraq.[40]
Blackwater Security is also now pursuing domestic work as disaster relief workers, following their Katrina response. Blackwater officials have met with Arnold Schwarzenegger to discuss earthquake response services.[41]

Blackwater K-9

Training canines to work in patrol capacities as war dogs, explosives and drug detection, and various other roles for military and law enforcement duties.

Blackwater Airships, LLC

Blackwater Airships LLC was established in January 2006 to build a remotely piloted airship vehicle (RPAV).[42]

Blackwater Armored Vehicle

Blackwater recently introduced its own armored personnel carrier, the Grizzly APC.[43]

Blackwater Maritime Solutions

Blackwater Maritime Security Services offers tactical training for maritime force protection units. In the past it has trained Greek security forces for the 2004 Olympics, Azerbaijan Naval Sea Commandos, and Afghanistan's Ministry of Interior.[44] Blackwater's facilities include a manmade lake, with stacked containers simulating the hull and deck of a ship for maritime assaults. Blackwater received a contract to train United States Navy sailors following the attack on the USS Cole. [45]
It has also recently purchased a 183ft vessel, the McArthur, which has been outfitted for disaster response and training.[46] According to Blackwater USA, it features "state of the art navigation systems, full GMDSS communications, SEATEL Broadband, dedicated command and control bays, helicopter decks, hospital and multiple support vessel capabilities."[46] The McArthur was built in 1966 by the Norfolk Shipbuilding & Drydock Co. and served as a research vessel for the National Oceanic and Atmospheric Administration until its decommissioning in 2003. The ship will be home-ported in Norfolk, Virginia.[47]

Raven Development Group

The Raven Development Group is a construction management and management subsidiary. It was established in 1999 to design and build Blackwater Worldwide's training facility in North Carolina.

Aviation Worldwide Services

Main article: Presidential Airways (charter)

Blackwater MD-530F.


Aviation Worldwide Services (AWS) was founded by Richard Pere and Tim Childrey, and is based Melbourne, Florida, USA. It owns and operates three subsidiaries: STI Aviation, Inc. Air Quest, Inc. and Presidential Airways, Inc. In April 2003 it was acquired by Blackwater USA.[48]
Presidential Airways (PAW) is an FAA Part 135 charter cargo and passenger airline based at Melbourne International Airport. It operates aircraft owned by AWS. Presidential Airways holds a Secret Facility Clearance from the U.S. Department of Defense.[49] It operates several CASA 212 aircraft in addition to a Boeing 767.[50] [51] Several of the MD-530 helicopters used by Blackwater Security Consulting in Iraq are also operated through AWS.[52][53]

CASA C.212 Safety Card on a Presidential Airways flight over Afghanistan in October 2005


AWS also appears to provide services to the United States Central Intelligence Agency, as three of its aircraft, with tail numbers N962BW, N964BW, and N968BW, have flown into its Camp Peary facility.[54][55][56][57] Its aircraft have also been used in the CIA's extraordinary rendition programs.[58][59] Blackwater also operates an airport at its Moyock, North Carolina facility, called Blackwater Airstrip Airport (NC61).[60] The listed owner is E&J Holdings LLC.[60]
A CASA 212 aircraft, tail number N960BW, operated by Presidential Airways crashed on November 27, 2004 in Afghanistan; it had been a contract flight for the United States Air Force en route from Bagram to Farah.[61] All aboard, three soldiers and three civilian crew members, were killed. Several of their survivors filed a wrongful death lawsuit against Presidential in October 2005.[62]
In late September 2007, Presidential Airways received a $92m contract from the Department of Defense for air transportation in Afghanistan, Kyrgyzstan, Pakistan and Uzbekistan.[63][64]
STI Aviation focuses on aircraft maintenance, and is a FAA/JAA 145 repair station.[48] They specialize in Short 360, EMB 120, Saab 340, and CASA 212 maintenance. As of January 2008, STI Aviation appears to have been folded into AWS, along with Air Quest.[65]
Many of Blackwater's tactical and training aircraft are registered to Blackwater affiliate EP Aviation LLC, named for Blackwater's owner, Erik Prince.[66] These aircraft include 14 Bell 412 helicopters, 3 Hughes/MD 369 "Little Bird" helicopters, 4 Bell 214ST medium-lift helicopters, 3 Fairchild Swearingen Merlin IIIC turboprop airliners, 9 Aérospatiale Puma utility helicopters[67], a Maule Air MT-7-235 STOL aircraft, an Embraer EMB 314 Super Tucano counterinsurgency aircraft, and a Mooney M20E fixed wing aircraft.[68]

Greystone Limited

A private security service, Greystone is registered in Barbados, and employs third country nationals for offshore security work through its affiliate Satelles Solutions, Inc.[69] Their web site advertises their ability to provide "personnel from the best militaries throughout the world" for worldwide deployment. Tasks can be from very small scale up major operations to "facilitate large scale stability operations requiring large numbers of people to assist in securing a region". [69]
Greystone had planned to open a training facility on the grounds of the Subic Bay Naval Base, but those plans were later abandoned.[70]

Iraq War involvement

See also: 31 March 2004 Fallujah ambush, Andrew J. Moonen, and Blackwater Baghdad shootings

Paul Bremer escorted by Blackwater Security


Blackwater Worldwide has played a substantial role during the Iraq War as a contractor for the United States government. In 2003, Blackwater attained its first high-profile contract when it received a $21 million no-bid contract for guarding the head of the Coalition Provisional Authority, L. Paul Bremer.[71]
On March 31, 2004, four Blackwater Security Consulting (BSC) employees were ambushed and killed in Fallujah, and their bodies were hung on bridges.
Since June 2004, Blackwater has been paid more than $320 million out of a $1 billion, five-year State Department budget for the Worldwide Personal Protective Service, which protects U.S. officials and some foreign officials in conflict zones.[72]
In 2006, Blackwater won the remunerative contract to protect Diplomats for the U.S. embassy in Iraq, the largest American embassy in the world. It is estimated by the Pentagon and company representatives that there are 20,000 to 30,000 armed security contractors working in Iraq, and some estimates are as high as 100,000, though no official figures exist.[73][72] Of the State Department's dependence on private contractors like Blackwater for security purposes, U.S. ambassador to Iraq Ryan Crocker told the U.S. Senate: "There is simply no way at all that the State Department's Bureau of Diplomatic Security could ever have enough full-time personnel to staff the security function in Iraq. There is no alternative except through contracts."[74][75]
On September 16, 2007, Blackwater employees in Nisour Square, Baghdad shot and killed 17 Iraqis, at least 14 of whom were killed "without cause" according to the Federal Bureau of Investigation.[76] In November 2008, the U.S. State Department prepared to issue a multimillion-dollar fine to Blackwater for shipping hundreds of automatic firearms to Iraq without the necessary permits. Some of the weapons were believed to have ended up on the country’s black market.[77][dead link][78]
For work in Iraq, Xe has drawn contractors from their international pool of professionals, a database containing "21,000 former Special Forces operatives, soldiers, and retired law enforcement agents," overall.[79] For instance, Gary Jackson, the firm's president, has confirmed that Bosnians, Filipinos, and Chileans "have been hired for tasks ranging from airport security to protecting Paul Bremer, the head of the Coalition Provisional Authority." Between 2005 and September 2007, Blackwater security staff were involved in 195 shooting incidents; in 163 of those cases, Blackwater personnel fired first. 25 members of staff have been fired for violations of Xe's drug and alcohol policy and 28 more for weapons-related incidents.[80]

Fallujah and Al Najaf


A Blackwater Security Company MD-530F helicopter aids in securing the site of a car bomb explosion in Baghdad, Iraq, December, 2004, during Operation Iraqi Freedom.


On March 31, 2004, Iraqi insurgents in Fallujah attacked a convoy containing four American private military contractors from Blackwater USA who were conducting delivery for food caterers ESS.[81] The four contractors, Scott Helvenston, Jerko Zovko, Wesley Batalona and Michael Teague, were attacked and killed with grenades and small arms fire. Their bodies were hung from a bridge crossing the Euphrates.[82] This event was one of the causes of the US military attack on the city in the First Battle of Fallujah.[83] In the fall of 2007, a congressional report by the House Oversight Committee found that Blackwater intentionally "delayed and impeded" investigations into the contractors' deaths.[84]
In April 2004, a few days after the Fallujah bridge hanging, a small team of Blackwater employees, along with a fire team of U.S. Marines, held off over 400 insurgents outside the Coalition Provisional Authority headquarters in Al Najaf, Iraq, waiting for U.S. troops to arrive. The headquarters was surrounded and it was the last area in the city that remained in coalition control. During the siege, as supplies and ammunition ran low, a team of Blackwater contractors 70 miles (113 km) away flew to the compound to resupply and bring an injured U.S. Marine back to safety outside of the city.[85][86] In April 2005 six Blackwater independent contractors were killed in Iraq when their Mi-8 helicopter was shot down. Also killed were three Bulgarian crewmembers and two Fijian gunners. Initial reports indicate the helicopter was shot down by rocket propelled grenades.[citation needed] In 2006 a car accident occurred in the Baghdad Green Zone when an SUV driven by Blackwater operatives crashed into a U.S. Army Humvee. Blackwater guards disarmed the Army soldiers and forced them to lie on the ground at gunpoint until they could disentangle their SUV from the wreck.[87]

Baghdad

On Christmas Eve 2006, a security guard of the Iraqi vice president, Adel Abdul Mahdi, was shot and killed while on duty outside the Iraqi prime minister's compound. The Iraqi government has accused Andrew J. Moonen, at the time an employee of Blackwater USA, of murdering him while drunk. Moonen was subsequently fired by Blackwater for "violating alcohol and firearm policy", and travelled from Iraq to the United States days after the incident. United States Attorneys are currently investigating.[88] The United States State Department and Blackwater USA had attempted to keep his identity secret. Despite the Blackwater incident, Moonen found subsequent employment. From February to August 2007, he was employed by US Defense Department contractor Combat Support Associates (CSA) in Kuwait. In April 2007, the US Department of Defense tried to call him back to active duty, but cancelled the request because Moonen was overseas.[89][90]

Blackwater Security guarding U.S. State Department employees


Five Blackwater contractors were killed on January 23, 2007 in Iraq when their Hughes H-6 helicopter was shot down. The incident happened on Baghdad's Haifa Street. The crash site was secured by a personal security detail, callsign "Jester" from 1/26 Infantry, 1st Infantry Division. Three Iraqi insurgent groups claimed responsibility for shooting down the helicopter, however, this has not been confirmed by the United States.[citation needed] A U.S. defense official has confirmed that four of the five killed were shot execution style in the back of the head, but did not know whether the four had survived the crash.[91][92]
In late May 2007, Blackwater contractors opened fire on the streets of Baghdad twice in two days, one of the incidents provoking a standoff between the security contractors and Iraqi Interior Ministry commandos, according to U.S. and Iraqi officials.[73] On May 30, 2007, Blackwater employees shot an Iraqi civilian deemed to have been "driving too close" to a State Department convoy that was being escorted by Blackwater contractors.[73][93] Other private security contractors, such as Aegis Defence Services have been accused of similar actions.[93] Doug Brooks, the president of the International Peace Operations Association ("IPOA"), a trade group representing Blackwater and other military contractors, said that in his view military law would not apply to Blackwater employees working for the State Department.[94] In October of 2007, Blackwater USA announced that the company was taking a "hiatus" from membership in IPOA.[95]
On February 6, 2006, a sniper employed by Blackwater Worldwide opened fire from the roof of the Iraqi Justice Ministry, killing three guards working for the state-funded Iraqi Media Network. According to 13 witnesses, the guards had not fired on the Justice Ministry. An Iraqi police report described the shootings as "an act of terrorism" and said Blackwater "caused the incident."[citation needed] Iraqi Media Network concluded that the guards were killed "without any provocation."[citation needed] The U.S. State Department, based on information obtained from Blackwater guards, who said they were fired upon, determined that the security team's actions "fell within approved rules governing the use of force."[96]
On September 16, 2007, Blackwater guards opened fire in Nisour Square, Baghdad, killing 17 civilians in the Blackwater Baghdad shootings incident. Witnesses claimed that the attack was unprovoked and that the mercenaries, in the employ of the U.S., continued firing while the Iraqi civilians were fleeing. Two Blackwater helicopters were also spotted at the time, that witnesses say aided in the attack. However, Blackwater claims that its guards were under attack and responded accordingly. The FBI found that at least 14 of the shootings were unjustified and found no evidence to support assertions by Blackwater employees that they were fired upon by Iraqi civilians.[97] Federal prosecutors have narrowed their focus to three Blackwater employees. A number of victims and victims' families have filed a lawsuit against Blackwater in Atban, et al. v. Blackwater USA, et al.[98]

Legal status and oversight of Blackwater Worldwide

Blackwater's license to operate in Iraq was revoked by the Iraqi Government on September 17, 2007, resulting from a highly contentious incident that occurred the previous day during which seventeen (initially reported as eleven) Iraqis were killed.[99][100] The fatalities occurred while a Blackwater Private Security Detail (PSD) was escorting a convoy of U.S. State Department vehicles en route to a meeting in western Baghdad with United States Agency for International Development officials. The US State Department has said that "innocent life was lost."[101] An anonymous U.S. military official was quoted as saying that Blackwater's guards opened fire without provocation and used excessive force.[102] The incident has sparked at least five investigations, and the FBI says it will begin a probe.[103] Blackwater helicopters were dispatched to evacuate the Polish ambassador following an insurgent assassination attempt on October 3, 2007.[104] The license was reinstated by the American government in April 2007, but the Iraqis announced that they have refused to extend that license in early 2009.[11][105]

U.S. Congress





On October 2, 2007 Erik Prince attended a congressional hearing conducted by the Committee on Oversight and Government Reform following the controversy related to Blackwater's conduct in Iraq and Afghanistan.[106][107] Blackwater hired the public relations firm BKSH & Associates Worldwide, a subsidiary of Burson-Marsteller, to help Prince prepare for his testimony at the hearing. Robert Tappan, a former U.S. State Department official who worked for the Coalition Provisional Authority in Baghdad, was one the executives handling the account.[108][109][110] Burson-Marsteller was brought aboard by the Washington law firms representing Blackwater -- McDermott Will & Emery and Crowell & Moring.[108] BKSH, a self-described "bipartisan" firm (Hillary Rodham Clinton, when pursuing the Democratic presidential nomination, was also a client), is headed by Charlie Black, a prominent Republican political strategist and former chief spokesman for the Republican National Committee, and Scott Pastrick, former treasurer of the Democratic National Committee.[111][112]
In his testimony before Congress, Prince said his company has a lack of remedies to deal with employee misdeeds. When asked why an employee involved in the killing of a vice-presidential guard incident had been "whisked out of the country" he replied, "We can't flog him, we can't incarcerate him."[113] Asked by a member of Congress for financial information about his company, Prince declined to provide it. "We're a private company, and there's a key word there — private," he answered.[114] Later he stated that the company could provide it at a future date if questions were submitted in writing. [115] When the term "mercenaries" was used to describe Blackwater employees, Prince objected, characterizing them as "loyal Americans".[116]
A Committee on Oversight and Government Reform staff report, based largely on internal Blackwater e-mail messages and State Department documents, describes Blackwater as "being staffed with reckless, shoot-first guards who were not always sober and did not always stop to see who or what was hit by their bullets."[117] A staff report compiled by the House Committee on Oversight and Government Reform on behalf of Representative Waxman questioned the cost-effectiveness of using Blackwater forces instead of U.S. troops. Blackwater charges the government $1,222 per day per guard, "equivalent to $445,000 per year, or six times more than the cost of an equivalent U.S. soldier," the report alleged.[118] During his testimony on Capitol Hill, Erik Prince disputed this figure, saying that it costs money for the government to train a soldier, to house and feed them, they don't just come prepared to fight. "That sergeant doesn't show up naked and untrained", Prince stated.[118][119]
In the wake of Prince's testimony before Congress, the US House passed a bill in October 2007 that would make all private contractors working in Iraq and other combat zones subject to prosecution by U.S. courts, and Senate Democratic leaders have said they plan to send similar legislation to President Bush as soon as possible.[120] The legal status of Xe and other security firms in Iraq is a subject of contention.[121] Two days before he left Iraq, L. Paul Bremer signed "Order 17" giving all Americans associated with the CPA and the American government immunity from Iraqi law.[122][123] A July 2007 report from the American Congressional Research Service indicates that the Iraqi government still has no authority over private security firms contracted by the U.S. government.[124] On October 5, 2007 the State Department announced new rules for Xe's armed guards operating in Iraq. Under the new guidelines, State Department security agents will accompany all Xe units operating in and around Baghdad. The State Department will also install video surveillance equipment in all Xe armored vehicles, and will keep recordings of all radio communications between Xe convoys in Iraq and the military and civilian agencies which supervise their activities.[125]
In December 2008 a US State Department panel recommended that Xe should be dropped as the main private security contractor for US diplomats in Iraq.[126]
On Jan 30, 2009, The U.S. State Department has told Blackwater Worldwide, that it will not renew its contract in Iraq.[127]

[Iraqi courts and legal action

On September 23, 2007, the Iraqi government said that it expects to refer criminal charges to its courts in connection with a shooting involving Blackwater guards.[128] However, on October 29, 2007, immunity from prosecution was granted by the U.S. State Department, delaying a criminal inquiry into the September 16 shootings of 17 Iraqi civilians.[129] Immediately afterwards, the Iraqi government approved a draft law to end any and all immunity for foreign military contractors in Iraq, to overturn Order 17. The U.S. Department of Justice also said any immunity deals offered to Blackwater employees were invalid, as the department that issued them had no authority to do so.[130] It is unclear what legal status Blackwater Worldwide operates under in the U.S. and other countries, or what protection the U.S. extends to Blackwater Worldwide's operations globally.[131]
Legal specialists say that the U.S. government is unlikely to allow a trial in the Iraqi courts, because there is little confidence that trials would be fair. Contractors accused of crimes abroad could be tried in the United States under either military or civilian law; however, the applicable military law, the Uniform Code of Military Justice, was changed in 2006, and appears to now exempt State Department contractors that provide security escorts for a civilian agency. Prosecution under civilian law would be through the Military Extraterritorial Jurisdiction Act, which allows the extension of federal law to civilians supporting military operations; however, according to the deputy assistant attorney general in the Justice Department’s criminal division Robert Litt, trying a criminal case in federal court would require a secure chain of evidence, with police securing the crime scene immediately, while evidence gathered by Iraqi investigators would be regarded as suspect.[131]
In December 2008, the US Justice Department indicted five of the Blackwater guards involved in the September 16, 2007, killings of unarmed civilians in Nisour Square in Baghdad.[132]

Non-Iraq services

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