Private security firm controversy

On September 17, 2007, the Iraqi government announced that it was revoking the license of the US security firm Blackwater USA over the firm's involvement in the killing of eight civilians, including a woman and an infant, in a firefight that followed a car bomb explosion near a State Department motorcade. Additional investigations of alleged arms smuggling involving the firm was also under way. Blackwater is currently one of the most high-profile firms operating in Iraq, with around 1,000 employees as well as a fleet of helicopters in the country. Whether the group may be legally prosecuted is still a matter of debate.An Iraqi investigation into the events stated that as the convoy drew close to Nisour Square, a distant Kia sedan with a woman and her grown son in it was driving slowly on the wrong side of the road, and ignored a police officer's whistle to clear a path for the convoy. The report said the security team fired warning shots and then lethal fire at the Kia. After this, the report said that stun grenades were fired off by contractors to clear the scene. The report continues by saying Iraqi police and Army soldiers, mistaking the stun grenades for frag grenades, opened fire at the Blackwater team, to which the Blackwater team again responded. A Reuters report showed some of the vehicles which were left at the scene. According to Iraqi investigators, a Blackwater helicopter present during the attack fired several times from the air. Blackwater has denied these charges.

Iraqi Brigadier-General Abdul-Karim Khalaf has stated the US firm "opened fire randomly at citizens." Among those killed was one Iraqi policeman; however, no State Department officials were wounded or killed.

Blackwater has stated that a car bomb detonated close to the meeting point and that their security team then evacuated the State Department officials. Blackwater says the convoy passed through Nisour Square, between the Sunni controlled al-Mansour and al-Yarmukh neighborhoods, and was attacked. According to Blackwater VP Marty Strong, it was hit with "a large explosive device" and "repeated small arms fire" which disabled a vehicle. Several sources have stated that the explosion was caused by a mortar round, though this is not reflected in the Department of State incident report. Blackwater has denied Iraqi allegations that one of their helicopters fired from the air during the incident.

A State Department report states that eight to ten attackers opened fire "from multiple nearby locations, with some aggressors dressed in civilian apparel and others in Iraqi police uniforms." The report says that as the convoy tried to leave, its route was blocked by insurgents armed with machine guns at 12:08pm. According to the report, "The team returned fire to several identified targets" before leaving the area and a second convoy en route to help was "blocked/surrounded by several Iraqi police and Iraqi national guard vehicles and armed personnel." A US Army convoy, possibly the same one delayed by Iraqi forces, arrived approximately a half hour later, backed by air cover, to escort the convoy back to the Green Zone.

On September 27, the New York Times reported that during the incident at Nisoor Square, one member of the Blackwater security team continued to fire on civilians, despite urgent cease-fire calls from colleagues. The incident was resolved after another Blackwater contractor pointed his own weapon at the man still firing and ordered him to stop.

US Military reports appear to corroborate the Iraqi government's contention that Blackwater was at fault in the incident.