The Iraqis have been working on this for years (and lied to about it) but it looks like they’ve finally pulled it off.  Iraq’s interior minister expelled 250 of their employees from the country yesterday:

Making the announcement on Thursday, Jawad Bolani, the interior minister, said: “We have sent an order to 250 former Blackwater employees, who today are working with other security companies in Iraq, to leave the country in seven days and we have confiscated their residence permits.

“All of those concerned were notified four days ago and so they have three days to leave. This decision was made in connection with the crime that took place at Nisur Square.”

Separately, more charges of prostitution and fraud are being reported by the Washington Post :

In court records unsealed this week, a husband and wife who worked for Blackwater said they have firsthand knowledge of the company falsifying invoices, double-billing federal agencies and improperly charging the government for personal expenses…

In their suit, the Davises assert that Blackwater officials kept a Filipino prostitute on the company payroll for a State Department contract in Afghanistan, and billed the government for her time working for male Blackwater employees in Kabul. The prostitute’s salary was categorized as part of the company’s “Morale Welfare Recreation” expenses, they alleged.

If you’ll recall, not that long ago a big fuss was being made over alleged prostitution and fraud and canceling contracts with another organization:

Multiple bills were produced with many co-sponsors, with one eventually being passed and quickly ruled unconstitutional by a federal court.  Legislation to simply restrict companies running wild with mercenaries has not been given nearly as much attention. In 2007, Illinois Representative Jan Schakowsky introduced a bill to do just that, titled the Stop Outsourcing Security Act .  It was promptly sent to die in committee.