Privatizing the war makes for even more profit making possibilities. It seems that the Iraqi government has little or no control over private security firms. From this article it seems that many do not even bother to get a licence from the Iraqi government. They are exempted from Iraqi law for any misdemeanors it seems. Casualties are not closely monitored and will not be counted in the grim statistics of US and allied losses in Iraq.
Iraq Contractors Face Growing Parallel War
As Security Work Increases, So Do Casualties
By Steve Fainaru
Washington Post Foreign Service
Saturday, June 16, 2007; A01
BAGHDAD -- Private security companies, funded by billions of dollars in U.S. military and State Department contracts, are fighting insurgents on a widening scale in Iraq, enduring daily attacks, returning fire and taking hundreds of casualties that have been underreported and sometimes concealed, according to U.S. and Iraqi officials and company representatives.
While the military has built up troops in an ongoing campaign to secure Baghdad, the security companies, out of public view, have been engaged in a parallel surge, boosting manpower, adding expensive armor and stepping up evasive action as attacks increase, the officials and company representatives said. One in seven supply convoys protected by private forces has come under attack this year, according to previously unreleased statistics; one security company reported nearly 300 "hostile actions" in the first four months.
The majority of the more than 100 security companies operate outside of Iraqi law, in part because of bureaucratic delays and corruption in the Iraqi government licensing process, according to U.S. officials. Blackwater USA, a prominent North Carolina firm that protects U.S. Ambassador Ryan C. Crocker, and several other companies have not applied, U.S. and Iraqi officials said. Blackwater said that it obtained a one-year license in 2005 but that shifting Iraqi government policy has impeded its attempts to renew.
The security industry's enormous growth has been facilitated by the U.S. military, which uses the 20,000 to 30,000 contractors to offset chronic troop shortages. Armed contractors protect all convoys transporting reconstruction materiel, including vehicles, weapons and ammunition for the Iraqi army and police. They guard key U.S. military installations and provide personal security for at least three commanding generals, including Air Force Maj. Gen. Darryl A. Scott, who oversees U.S. military contracting in Iraq and Afghanistan.
"I'm kind of practicing what I preach here," Scott said in an interview on the use of private security forces for such tasks. "I'm a two-star general, but I'm not the most important guy in the multinational force. If it's a lower-priority mission and it's within the capabilities of private security, this is an appropriate risk trade-off."
The military plans to outsource at least $1.5 billion in security operations this year, including the three largest security contracts in Iraq: a "theaterwide" contract to protect U.S. bases that is worth up to $480 million, according to Scott; a contract for up to $475 million to provide intelligence for the Army and personal security for the U.S. Army Corps of Engineers; and a contract for up to $450 million to protect reconstruction convoys. The Army has also tested a plan to use private security on military convoys for the first time, a shift that would significantly increase the presence of armed contractors on Iraq's dangerous roads.
"The whole face of private security changed with Iraq, and it will never go back to how it was," said Leon Sharon, a retired Special Operations officer who commands 500 private Kurdish guards at an immense warehouse transit point for weapons, ammunition and other materiel on the outskirts of Baghdad.
U.S. officials and security company representatives emphasized that contractors are strictly limited to defensive operations. But company representatives in the field said insurgents rarely distinguish between the military and private forces, drawing the contractors into a bloody and escalating campaign.
The U.S. military has never released complete statistics on contractor casualties or the number of attacks on privately guarded convoys. The military deleted casualty figures from reports issued by the Reconstruction Logistics Directorate of the Corps of Engineers, according to Victoria Wayne, who served as deputy director for logistics until 2006 and spent 2 1/2 years in Iraq.
Wayne described security contractors as "the unsung heroes of the war." She said she believed the military wanted to hide information showing that private guards were fighting and dying in large numbers because it would be perceived as bad news.
"It was like there was a major war being fought out there, but we were the only ones who knew about it," Wayne said.
After a year of protests by Wayne and logistics director Jack Holly, a retired Marine colonel, the casualty figures were included. In an operational overview updated last month, the logistics directorate reported that 132 security contractors and truck drivers had been killed and 416 wounded since fall 2004. Four security contractors and a truck driver remained missing, and 208 vehicles were destroyed. Only convoys registered with the logistics directorate are counted in the statistics, and the total number of casualties is believed to be higher.
"When you see the number of my people who have been killed, the American public should recognize that every one of them represents an American soldier or Marine or sailor who didn't have to go in harm's way," Holly said in an interview.
According to the logistics directorate, attacks against registered supply convoys rose from 5.4 percent in 2005, to 9.1 percent in 2006, to 14.7 percent through May 10. The directorate has tracked 12,860 convoys, a fraction of the total number of private supply convoys on Iraqi roads.
"The military are very conscious that we're in their battle space," said Cameron Simpson, country operations manager for ArmorGroup International, a British firm that protects 32 percent of all nonmilitary supply convoys in Iraq. "We would never launch into an offensive operation, but when you're co-located, you're all one team, really."
ArmorGroup, which started in Iraq with 20 employees and a handful of SUVs, has grown to a force of 1,200 -- the equivalent of nearly two battalions -- with 240 armored trucks; nearly half of the publicly traded company's $273.5 million in revenue last year came from Iraq. Globally, ArmorGroup employs 9,000 people in 38 countries.
The company, with headquarters at a complex of sandstone villas near Baghdad's Green Zone, is acquiring a fleet of $200,000 tactical armored vehicles equipped with two gun hatches and able to withstand armor-piercing bullets and some of the largest roadside bombs.
The U.S. Labor Department reported that ArmorGroup has lost 26 employees in Iraq, based on insurance claims. Sources close to the company said the figure is nearly 30. Only three countries in the 25-nation coalition -- the United States, Britain and Italy -- have sustained more combat-related deaths.
A Turning Point
In spring 2004, Holly built the logistics network for Iraq's reconstruction from scratch. The network delivered 31,100 vehicles, 451,000 weapons and 410 million rounds of ammunition to the new Iraqi security forces, and items as varied as computers, baby incubators, school desks and mattresses for every Iraqi government ministry. The network came to rival the military's own logistics operation.
Holly also discovered he was at the center of an undeclared war.
He assembled a small private army to protect materiel as it flowed from border crossings and a southern port at Umm Qasr to the 650,000-square-foot warehouse complex at Abu Ghraib and on to its final destination.
"The only way anything gets to you here is if somebody bets their life on its delivery," said Holly, a burly civilian with a trimmed gray beard who strikes a commanding presence even in khakis, multicolored checked shirts and tennis shoes. "That's the fundamental issue: Nothing moves anywhere in Iraq without betting your life."
The most dangerous link in Holly's supply chain is shipping. It requires the slow-moving convoys to navigate Iraq's dangerous roads. Holly erected a ground-traffic control center in a low-slung trailer near his office in Baghdad's Green Zone. The security companies monitor their convoys in air-conditioned silence, which is shattered by a jarring klaxon each time a contractor pushes a dashboard "panic button," signaling a possible attack.
On May 8, 2005, after dropping off a load that included T-shirts, plastic whistles and 250,000 rounds of ammunition for Iraqi police, one of Holly's convoys was attacked. Of 20 security contractors and truck drivers, 13 were killed or listed as missing; five of the seven survivors were wounded. Insurgents booby-trapped four of the bodies. To eliminate the threat, a military recovery team fired a tank round into a pile of corpses, according to an after-action report.
The convoy had been protected by Hart Security, a British firm that used unarmored vehicles. Within a month, another Hart-led convoy was hit. The team leader informed the ground-control center by cellphone that he was running out of ammunition. He left the cellphone on as his convoy was overrun.
"We listened to the bad guys for almost an hour after they finished everybody off," Holly said.
The attacks represented a turning point in the private war.
Holly vowed he would never again use unarmored vehicles for convoy protection. He went to his primary shipper, Public Warehousing Co. of Kuwait, and ordered a change. PWC hired ArmorGroup, which had armed Ford F-350 pickups with steel-reinforced gun turrets and belt-fed machine guns.
Other companies followed suit, ramping up production of an array of armored and semi-armored trucks of various styles and colors, until Iraq's supply routes resembled the post-apocalyptic world of the "Mad Max" movies.