Blackwater to continue obtaining security contracts after deal with State Department

NEW YORK - Controversial private US security firm, Blackwater, now known as Xe Services, has reportedly reached an agreement with the State Department, which would result in the firm paying a whopping 42 million dollars in fines for hundreds of violations of country’s export control regulations, but yet continue getting contracts for its services.

Though the deal has not been made public yet, Xe Services spokeswoman confirmed the report, saying a settlement has been reached with the State Department.

The security firm has been facing charges for violations which includes illegal weapons exports to Afghanistan, making unauthorized proposals to train troops in south Sudan and providing sniper training for Taiwanese police officers.

When enquired about the deal, the State Department spokesman, Philip J Crowley, said he is unable to comment on it immediately, The New York Times reports.
However, despite being penalised for violating exports control regulations, Blackwater would continue to obtain government contracts to provide its services in countries like Afghanistan and Pakistan.

Though the contentious firm was denied a huge contract to provide diplomatic security to US Embassy personnel in Baghdad last year, it continues to enjoy contracts for providing security cover to State Department and CIA officials stationed in Afghanistan.

Despite numerous complaints against the firm, it has continued to win contracts from both the State Department and the C.I.A. for providing security and other logistic support for their operations in Afghanistan and Iraq.

In June, the State Department awarded Blackwater a 120 million dollar contract to provide security at its regional offices in Afghanistan, while the CIA renewed the firm’s 100 million dollar security contract for its station in Kabul.

CIA director, Leon E. Panetta had then defended the agency’s decision, saying that company had offered the lowest bid and has “cleaned up its act.” (ANI)