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The Iraqi government has informed the U.S. Embassy in Baghdad that it will not issue a new operating license to Blackwater Worldwide, the embassy's primary security company, which has come under scrutiny for allegedly using excessive force while protecting American diplomats, Iraqi and U.S. officials said Wednesday.
Iraq's Interior Ministry conveyed its decision to U.S. officials in Baghdad on Friday, in one of the boldest moves the government has made since the Jan. 1 implementation of a security agreement with the United States that sharply curbed American power in Iraq.
Blackwater employees who have not been accused of improper conduct will be allowed to continue working as private security contractors in Iraq if they switch employers, Iraqi officials said Wednesday.
The company has received more than $1 billion from the federal government since 2000. In recent months, however, Blackwater has expanded its business model to rely less heavily on private security work overseas. Though tremendously profitable, the field has generated an avalanche of bad publicity for the company and exposed it to numerous lawsuits.