The State Department contracts with a private security firm - ArmorGroup North America, owned by Wackenhut. ArmorGroup employs 450 guards at the Kabul Embassy - two-thirds from Nepal and India, the rest from the U.S. and other English-speaking nations.

a private surge after a public withdrawal:
While all of this is troubling, there is another disturbing fact which speaks volumes about the Democrats' lack of insight into the nature of this unpopular war -- and most Americans will know next to nothing about it. Even if the President didn't veto their legislation, the Democrats' plan does almost nothing to address the second largest force in Iraq -- and it's not the British military. It's the estimated 126,000 private military "contractors" who will stay put there as long as Congress continues funding the war.
(...) The 145,000 active duty U.S. forces are nearly matched by occupation personnel that currently come from companies like Blackwater USA and the former Halliburton subsidiary KBR, which enjoy close personal and political ties with the Bush administration. Until Congress reins in these massive corporate forces and the whopping federal funding that goes into their coffers, partially withdrawing U.S. troops may only set the stage for the increased use of private military companies (and their rent-a-guns) which stand to profit from any kind of privatized future "surge" in Iraq.
(...) While many of them perform logistical support activities for American troops, including the sort of laundry, fuel and mail delivery, and food-preparation work that once was performed by soldiers, tens of thousands of them are directly engaged in military and combat activities. According to the Government Accountability Office, there are now some 48,000 employees of private military companies in Iraq. These not-quite G.I. Joes, working for Blackwater and other major U.S. firms, can clear in a month what some active-duty soldiers make in a year. "We got 126,000 contractors over there, some of them making more than the secretary of Defense," said House Defense Appropriations Subcommittee Chairman John Murtha. "How in the hell do you justify that?"
(...) House Oversight and Government Reform Committee Chairman Rep. Henry Waxman estimates that $4 billion in taxpayer money has so far been spent in Iraq on these armed "security" companies like Blackwater -- with tens of billions more going to other war companies like KBR and Fluor for "logistical" support. Rep. Jan Schakowsky of the House Intelligence Committee believes that up to forty cents of every dollar spent on the occupation has gone to war contractors.
(...) David Petraeus, the general running the President's "surge" plan in Baghdad, cited private forces as essential to winning the war. In his confirmation hearings in the Senate, he claimed that they fill a gap attributable to insufficient troop levels available to an overstretched military. Along with Bush's official troop surge, the "tens of thousands of contract security forces," Petraeus told the Senators, "give me the reason to believe that we can accomplish the mission." Indeed, Gen. Petraeus admitted that he has, at times, been guarded in Iraq not by the U.S. military, but "secured by contract security."
(...) lthough contractor deaths are not effectively tallied, at least 770 contractors have been killed in Iraq and at least another 7,700 injured. These numbers are not included in any official (or media) toll of the war. More significantly, there is absolutely no effective system of oversight or accountability governing contractors and their operations, nor is there any effective law -- military or civilian -- being applied to their activities. They have not been subjected to military courts martial (despite a recent Congressional attempt to place them under the Uniform Code of Military Justice), nor have they been prosecuted in U.S. civilian courts -- and, no matter what their acts in Iraq, they cannot be prosecuted in Iraqi courts. Before Paul Bremer, Bush's viceroy in Baghdad, left Iraq in 2004 he issued an edict, known as Order 17. It immunized contractors from prosecution in Iraq which, today, is like the wild West, full of roaming Iraqi death squads and scores of unaccountable, heavily-armed mercenaries, ex-military men from around the world, working for the occupation. For the community of contractors in Iraq, immunity and impunity are welded together.
(...) Despite the tens of thousands of contractors passing through Iraq and several well-documented incidents involving alleged contractor abuses, only two individuals have been ever indicted for crimes there. One was charged with stabbing a fellow contractor, while the other pled guilty to the possession of child-pornography images on his computer at Abu Ghraib prison. While dozens of American soldiers have been court-martialed -- 64 on murder-related charges -- not a single armed contractor has been prosecuted for a crime against an Iraqi. In some cases, where contractors were alleged to have been involved in crimes or deadly incidents, their companies whisked them out of Iraq to safety.
(...) "These private contractors are really an arm of the administration and its policies," argues Rep. Dennis Kucinich, who has called for a withdrawal of all U.S. contractors from Iraq. "They charge whatever they want with impunity. There's no accountability as to how many people they have, as to what their activities are."
(...) Not surprisingly, then, the mercenary trade group with the Orwellian name of the International Peace Operations Association (IPOA) has pushed for just this Democratic-sponsored approach rather than the military court martial system favored by conservative Republican Senator Lindsey Graham. The IPOA called the expansion of the Military Extraterritorial Jurisdiction Act -- essentially the Democrats' oversight plan -- "the most cogent approach to ensuring greater contractor accountability in the battle space." That endorsement alone should be reason enough to pause and reconsider.
(...) As originally passed in the House, the Democrats' Iraq plan would have cut only about 15% or $815 million of the supplemental spending earmarked for day-to-day military operations "to reflect savings attributable to efficiencies and management improvements in the funding of contracts in the military departments." ... But even that mild provision was dropped by the Democrats in late April. Their excuse was the need to hold more hearings on the contractor issue. Instead, they moved to withhold -- not cut -- 15% of total day-to-day operational funding, but only until Secretary of Defense Robert Gates submits a report on the use of contractors and the scope of their deployment. Once the report is submitted, the 15% would be unlocked. In essence, this means that, under the Democrats plan, the mercenary forces will simply be able to continue business-as-usual/profits-as-usual in Iraq.
(...) Consider the case of Blackwater USA. A decade ago, the company barely existed; and yet, its "diplomatic security" contracts since mid-2004, with the State Department alone, total more than $750 million. Today, Blackwater has become nothing short of the Bush administration's well-paid Praetorian Guard. It protects the U.S. ambassador and other senior officials in Iraq as well as visiting Congressional delegations; it trains Afghan security forces and was deployed in the oil-rich Caspian Sea region, setting up a "command and control" center just miles from the Iranian border. The company was also hired to protect FEMA operations and facilities in New Orleans after Hurricane Katrina, where it raked in $240,000 a day from the American taxpayer, billing $950 a day per Blackwater contractor.
(...) At present, it has forces deployed in nine countries and boasts a database of 21,000 additional troops at the ready, a fleet of more than 20 aircraft, including helicopter gun-ships, and the world's largest private military facility -- a 7,000 acre compound near the Great Dismal Swamp of North Carolina. It recently opened a new facility in Illinois ("Blackwater North") and is fighting local opposition to a third planned domestic facility near San Diego ("Blackwater West") by the Mexican border. It is also manufacturing an armored vehicle (nicknamed the "Grizzly") and surveillance blimps.
(...) The President likes to say that defunding the war would undercut the troops. Here's the truth of the matter: Continued funding of the Iraq war ensures tremendous profits for politically-connected war contractors. If Congress is serious about ending the occupation, it needs to rein in the unaccountable companies that make it possible and only stand to profit from its escalation.

lawlessness of private mercenaries in iraq:
(...) The Pentagon estimates that at least 20,000 security contractors work in Iraq, the size of an additional division.
(...) Private contractors were granted immunity from the Iraqi legal process in 2004 by L. Paul Bremer, head of the Coalition Provisional Authority, the U.S. occupation government. More recently, the military and Congress have moved to establish guidelines for prosecuting contractors under U.S. law or the Uniform Code of Military Justice, but so far the issue remains unresolved.
(...) Naucukidi left Triple Canopy on his own shortly after the incidents occurred. Company officials said he was not fired because, unlike the three other guards, he had reported the shootings immediately. During an interview on the Fijian island of Ovalau, where he farms, Naucukidi said he decided not to return to Triple Canopy because "I couldn't stand what was happening. It seemed like every day they were covering something" up.
Insurgents frequently attack them. Iraqi civilians have expressed fear of their sometimes heavy-handed tactics, which have included running vehicles off the road and firing indiscriminately to ward off attacks.
(...) Current and former Triple Canopy employees said they policed themselves in Iraq under an informal system they frequently referred to as "big boy rules." "We never knew if we fell under military law, American law, Iraqi law, or whatever," Sheppard said. "We were always told, from the very beginning, if for some reason something happened and the Iraqis were trying to prosecute us, they would put you in the back of a car and sneak you out of the country in the middle of the night." Naucukidi said the American contractors had their own motto: "What happens here today, stays here today."
(...) Washbourne, as team leader, led a pre-mission briefing in the parking lot. As the briefing concluded, according to Naucukidi, Washbourne cocked his M-4 and said, "I want to kill somebody today." Naucukidi said he asked why. He recalled that Washbourne replied: "Because I'm going on vacation tomorrow. That's a long time, buddy."
(...) [a little bit of racism for good measure...] But Naucukidi said Masirewa feared losing his job and did not immediately turn over the report. "It was a difficult thing for us because we are TCNs," or third-country nationals, "and they are expats," Naucukidi said. "They are team leaders, and they make commands and reports on us. And the team leaders were always saying, 'What happens today, stays today,' and if something like that happens, the team leaders, they start covering each other up." [earlier in the article: Schmidt and Sheppard earned $500 a day. Naucukidi earned $70 a day for the same work.]

on the 'culture of fear' that underlies the war of terror:
The war on terror has disseminated fear everywhere. Fear is a much greater threat to nations than the most lethal weapons. Fear numbs the mind and sparks the weakest, most cowardly and basest instincts. It makes people easy prey to the whims and follies of demagogues and dictators. It was by playing on fear that Bush could mount his invasions and occupations of Afghanistan and Iraq. Whenever his project bogs down or he comes under fire, Bush instructs his aides to drum up people's fear of another terrorist attack. This was the climate that smoothed the passage of the Patriot Act and the erosion of civil and personal liberties under government surveillance and secret detentions. This act, moreover, set the model for other governments, which never would have dared introduce a law like it before. Now that the greatest democracy on earth has it, it has become the right of every ruler on earth to impose a patriot act of his own; in our case, to make it an eternal constitutional cornerstone and perpetual font of legislation. The perpetuation of fear has turned back the tide of democracy, stymied the march of liberty, and let absolute rulers rule more absolutely.
(...) [and a boom for business?] But the culture of fear has also sparked a great boom in the private security sector. On top of the slew of already pre-existing security firms -- some transnational -- there have emerged hundreds of new ones, all dedicated to providing protection to politicians, film and music stars, influential families, and the rich and famous of every stripe. With all those guards, hidden cameras and metal detectors everywhere, is it any wonder that everyone is feeling increasingly nervous? Security now means big money. In Iraq alone, some 100,000 private security entrepreneurs are raking in billions of dollars protecting US armed forces personnel and those America installed in government there. The phenomenon is widespread and growing -- here in Egypt, too -- and it feeds on the culture of fear, without the continuation of which some very important and wealthy people would lose a lot of money and influence.