Black deeds of Blackwater - to pay -$9m

IRAQI authorities have demanded $US8 million ($8.9 million) in compensation for the families of each of the 17 people killed when Blackwater USA guards opened fire on a crowded square last month.

A report issued by the Iraqi Government, which calls on the US Government to end its relationship with the controversial security firm within six months, is set to further raise tensions between the Government of the Prime Minister, Nouri al-Maliki, and the White House.

The report said the compensation - totalling $US136 million - was so high "because Blackwater uses employees who disrespect the rights of Iraqi citizens even though they are guests in this country".

"The investigation committee appointed by [Mr Maliki] has finished its inquiry and has found that there was no evidence that the convoy of Blackwater came under fire directly or indirectly," a Government statement said, quoting the inquiry's findings. "Employees of the company violated the rules governing use of force by security companies. They have committed a deliberate crime and should be punished under the law.">>>Detail