FBI takes lead in Blackwater investigation

By Sue Pleming and Andy Sullivan

WASHINGTON (Reuters) - The FBI has taken control from the State Department of an investigation into the September 16 shooting incident involving security contractor Blackwater in which 11 Iraqis were killed, the department said on Thursday.

The shift occurred for a variety of reasons, including to prepare for the possibility the case could be referred later on to the U.S. Justice Department or Iraqi authorities for further action, State Department spokesman Sean McCormack said.

"It is in a sense a hedge against the possibility that an investigation leads to the point where there may need to be a referral (to the Justice Department or the Iraqi authorities)," he told reporters.

"It made sense to clearly designate (who is in charge) from the beginning," he added.

The FBI is the main investigative arm of the Justice Department and has the authority to investigate suspected crimes that could later result in charges being filed.

But McCormack stressed the shift in lead agency did not indicate "in any way, shape, or form" that there had been any findings so far that could lead to such a referral.

"This is an ongoing investigation and no body has come to any conclusions," said McCormack.

The September 16 incident, which occurred when Blackwater was protecting a diplomatic convoy, enraged Iraqis and has led to closer scrutiny of the use of security contractors in war zones.

It has also raised questions over laws governing contractors abroad. The U.S. House of Representatives passed a bill on Thursday to make all U.S. government contractors accountable under U.S. law for their actions.

A senior U.S. official, who asked not to be named, said if the justice department opened a case against Blackwater it would make it easier to work with FBI investigators who had the lead and were already gathering evidence.

An FBI spokesman confirmed the change in control.

"The FBI will work closely with the State Department on this matter," FBI spokesman Rich Kolko said.

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Criminal charges have not been filed against North Carolina-based Blackwater, which has more than 1,000 security staff in Iraq protecting U.S. embassy personnel under a State Department contract.

Blackwater, which has received U.S. government contracts worth more than a billion dollars since 2001, is also under scrutiny over other shooting incidents involving Iraqis.