Due to an attack last month, which an Iraqi government investigation has concluded was unprovoked, Iraqi authorities want the US government to end all contracts in Iraq with Blackwater within 6 months. The Iraqi government has additionally demanded $8 million in compensation to each of the families of the 17 innocent people killed by the private mercenary firm, and requested that US authorities hand over all Blackwater agents involved in the incident to face a possible trial in Iraqi courts.

Iraqi witnesses say that a Blackwater convoy of 4 vehicles drove into a traffic circle at Nisoor Square last month, only to be blocked by barriers put in place to protect a maintenance crew. Blackwater agents threw water bottles at cars to keep them from approaching the convoy. As one car inched forward, Blackwater opened fire on the crowd. CBS News has reported that the eyewitness accounts of the shooting are remarkably consistent, suggesting that the violence was indeed one-sided.

The Iraqi investigation charges the four Blackwater vehicles called to the square began shooting without provocation. Blackwater contends its employees came under fire first.

The government, at the conclusion of its investigation, said 17 Iraqis died. Initial reports put the toll at 11.

It said the compensation - totaling $136 million - was so high “because Blackwater uses employees who disrespect the rights of Iraqi citizens even though they are guests in this country.”

The U.S. military pays compensation money to the families of civilians killed in battles or to cover property damage, but at far lower amounts.

The FBI has taken over a State Department investigation into the shooting, raising the prospect that the case could be referred to the Justice Department for prosecution. However, the Iraqi government still insists that an Iraqi court would be the proper place to bring charges against Blackwater. The company has no immunity from prosecution under Iraqi law since its license to operate in the country expired on June 2, 2006. Blackwater guards have also murdered 21 Iraqi civilians and wounded 27 others in previous shootings. It is unknown whether the Iraqi government will seek prosecution in those cases as well.

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