“A preliminary Iraqi report on a shooting involving an American diplomatic motorcade said Tuesday that Blackwater security guards were not ambushed, as the company reported, but instead fired at a car when it did not heed a policeman’s call to stop, killing a couple and their infant.”
Further, the “Ministry of Defense said 20 Iraqis had been killed, a far higher number than had been reported before.”
Blackwater Security had their license to operate in Iraq revoked yesterday for their role in the incident.
UPDATE: The Washington Post is reporting that Blackwater “operated under State Department authority that exempted the company from U.S. military regulations governing other security firms.”
Many U.S. and Iraqi officials and industry representatives said they came to see Blackwater as untouchable, protected by State Department officials who defended the company at every turn. Blackwater employees protect the U.S. ambassador and other diplomats in Iraq.
Blackwater “has a client who will support them no matter what they do,” said H.C. Lawrence Smith, deputy director of the Private Security Company Association of Iraq, an advocacy organization in Baghdad that is funded by security firms, including Blackwater.
The State Department allowed Blackwater’s heavily armed teams to operate without an Interior Ministry license, even after the requirement became standard language in Defense Department security contracts. The company was not subject to the military’s restrictions on the use of offensive weapons, its procedures for reporting shooting incidents or a central tracking system that allows commanders to monitor the movements of security companies on the battlefield.
“The Iraqis despised them, because they were untouchable,” said Matthew Degn, who recently returned from Baghdad after serving as senior American adviser to the Interior Ministry. “They were above the law.” Degn said Blackwater’s armed Little Bird helicopters often buzzed the Interior Ministry’s roof, “almost like they were saying, ‘Look, we can fly anywhere we want.’ “
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“President Bush will tell the nation this week 
According to this morning’s Face the Nation, Sen. Edward Kennedy (D-MA)
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