The fact that Blackwater may not have had or needed are current license was reported, but remains entirely unclear. Reuters explained:
http://www.reuters.com/article/worldNews/idUSL1882490620070918?pageNumber=1Security sources in Baghdad say they operate in a murky world of little regulation where few companies hold up-to-date licenses and many bribe their way into work.
The workings of security contractors in Iraq are so unclear that the State Department, whom Blackwater protects in Iraq, was still unable to say more than 48 hours after Sunday's incident whether the company holds a legitimate license.
The U.S. embassy also could not answer questions about the legal status of security contractors, and
whether any possible proceedings would be prosecuted under Iraqi or U.S. law.
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GOVERNMENT POLICY UNCLEAR
Other security sources, who asked not to be named, said few foreign security companies hold current licenses, most simply not bothering to renew their one-year permit after landmark 2005 elections because the new government's policy was unclear.
Companies wanting to work in Iraq must register with the ministries of trade and the interior, lodging documentation for personnel, vehicles, weapons, training, fire and safety and first aid, and pay a bond of between $20,000 and $55,000.
David Claridge, managing director of London-based Janusian Security Risk Management which employs about 1,000 mostly Iraqi staff, said the rules on licensing private security companies (PSCs) had not been consistently applied.
"You have to apply those rules evenly. Otherwise it does introduce a level of uncertainty ... and create a sense that some people are totally immune and can behave as they wish and others not," he told Reuters in London.
Claridge and several Baghdad security sources said it was widely known Blackwater was operating without a license because they worked under the protection of the U.S. embassy.
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http://www.reuters.com/article/worldNews/idUSL1882490620070918?pageNumber=1