Immunity Provision Extended for U.S. Firms With Reconstruction Contracts
By Ellen McCarthy
Washington Post Staff Writer
Tuesday, June 29, 2004; Page A18

U.S. contractors working in Iraq will be exempted from the legal processes of the country's new interim government when they are performing official duties and most reconstruction contracts will continue uninterrupted, U.S. officials said yesterday.

Under an order signed Sunday by L. Paul Bremer, the U.S. civilian administrator of Iraq, the contractors' immunity provision covers "official acts that they perform in contracts in support of the Iraq reconstruction effort," said Scott Castle, general counsel for the occupation authority. In matters unrelated to their contract work, they will be subject to Iraqi rules.

"From our standpoint, it hasn't really changed at all, and that's a good thing. It gives us a modicum of protection," said Robert L. Rubin, senior vice president of MVM Inc., a Vienna security company. "We do have to justify every shot fired, and even this doesn't change that."

The $18.6 billion allotted by the U.S. government for the reconstruction of Iraq, money that was previously administered by the occupation authority, will come under control of the State Department. Payments on those contracts are expected to continue without interruption.

Control of contracts funded by Iraqi funds, which include oil revenue and seized assets, will be shifted to the country's interim government. Occupation officials worked with the Iraqi Finance Ministry to establish processes for paying contractors. "The bottom line here is that steps have been taken to make sure that contractors will get paid in a timely fashion," Castle said.