Blackwater might lose license to work in Iraq

By: The Associated Press
By: The Associated Press

The State Department faces serious challenges protecting U.S. diplomats in Iraq and may no longer be able to rely on Blackwater Worldwide to do the job.

That's according to an internal report obtained by The Associated Press Wednesday.

It says the agency must deal with the prospect that Blackwater -- its main private security contractor in Iraq -- could lose its license to work there. Officials say that means preparing alternative arrangements.

A recommendation on whether to renew Blackwater's contract is expected after a review. That probe was ordered last September after an incident in which Blackwater guards killed 17 Iraqis in Baghdad.

Blackwater founder Erik Prince is a Holland (Michigan) native whose family fortune was made in the auto parts industry.

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