Contractors part of Iraqi climate

BAGHDAD, Aug. 11 (UPI) -- Private security contractors in Iraq may be a necessary inconvenience as the country struggles to court foreign investors for reconstruction, official say.

Private security companies in Iraq now number more than 50 as Iraq tries to recover from decades of under-investment and years of conflict following the U.S.-led invasion of 2003.

Foreign investment in the burgeoning Iraqi infrastructure is considered vital to reconstruction efforts, though several companies in a June auction for oil contracts cited insecurity as a reason to stay away.

Abdul Kareem Kaleph, a spokesman for the Iraqi Interior Ministry, told London's Guardian newspaper that despite the tarnished image of the private security industry, Iraqi law is drafted to permit their presence.

"There are now 54 private companies operating in Iraq, providing escort services, on-site services and private close personal protection for businessmen," he said. "They are subject to laws and conditions of the Iraqi government and have been since 1 January. We cannot prevent them from working here to support private businessmen."

His statements follow accusations that Erik Prince, founder of Blackwater Worldwide, rebranded as Xe Services LLC, "viewed himself as a Christian Crusader who wants to eliminate Muslims everywhere."

Guards working for Blackwater in 2005 provoked the ire of the Iraqi population when they opened fire on an intersection in Baghdad.