The Iraqi government announced on Tuesday that it would review the status of foreign security firms operating in Iraq following Monday's shooting incident involving Blackwater commandos during which eight Iraqis were killed and 11 injured in the upmarket Mansour district of the capital.

Radical Shia cleric Muqtada al-Sadr, whose 32 legislators withdrew from the ruling Shia alliance, blamed the government for allowing such companies to operate in Iraq.

Following the incident, Iraqi Premier Nuri al-Maliki called for revocation of Blackwater's license to operate, the withdrawal of its 1,000 personnel except for those involved in the shootings, and their trial in an Iraq court.
After numerous fatal firings and road accidents by hired gunmen, ordinary Iraqis have repeatedly called for their expulsion.

Government spokesman Ali al-Dabbagh said the cabinet had confirmed that it is “necessary to review the status of local and foreign private security companies working in Iraq to see if they conform to our laws”. He said the cabinet supported the Interior Ministry's decision to revoke Blackwater's license, facilitate an investigation, and hold all those responsible for the fatalities are prosecuted.

However, Blackwater never had a license to work in Iraq. It is under contract to the US State Department which uses the company's armed men to protect diplomats and delegations moving outside the fortified Green Zone. Under Order 17, issued by the occupation administration before the establishment of the Iraqi interim government under Ayad Allawi, security contractors are immune from Iraqi prosecution.

Hassan al-Rubaei, a member of the parliament's security and defense committee, said an investigative committee would consider abolishing the order.

No pullout
It is unlikely that Blackwater will be compelled to pullout of Iraq. Mercenaries are essential to the US presence in Iraq because of the shortage of regular and reserve US troops.

There could be as many as 160,000 foreigners and Iraqis working for foreign security contractors in Iraq, all without serious regulation or oversight. Although the Kurdish regional government called for the withdrawal of Blackwater from the northern three provinces in 2005, the firm’s armed men continue to protect US diplomats there.

Blackwater and similar firms have close ties to Halliburton, Kellogg, Brown and Root, and other US firms providing services to US troops in Iraq and enjoy political protection.