RedRalph
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From BBC.co.uk
Blackwater should be dropped as the main private security contractor for US diplomats in Iraq, a US State Department panel has recommended.
Its report, commissioned by Secretary of State Condoleezza Rice, says the company's contract should not be renewed when it expires next year.
Ms Rice ordered the review after Blackwater guards killed 17 Iraqi civilians in Baghdad in September 2007.
Five guards have been charged with manslaughter over the shootings.
The incident triggered outrage in Iraq and led to a debate about the role there of private security companies - upon which the US relies heavily.
A decision on the recommendation will be left to the incoming Obama administration, which will be in office when Blackwater's contract comes up for renewal.
Scrutiny
Based in North Carolina, Blackwater was one of the first private security firms to work in Iraq following the US-led takeover.
It provides guards and security for American and other diplomats in the country.
But the company has been under intense scrutiny since its guards opened fire at a busy Baghdad intersection in September 2007, killing 17 Iraqi civilians.
Blackwater says the guards' convoy came under attack from insurgents.
Five of its employees have now been charged in the US with manslaughter and other offences, but the company itself has not faced charges.
It is not clear how the US might replace Blackwater.
But the report recommended that the State Department increased the presence of its Diplomatic Security Service in Iraq, the Associated Press news agency reported, citing an unidentified US official.