Pay Row Closes Baghdad Airport

Baghdad's international airport was closed today after the British company in charge of security halted operations in a row over payment.

Global Strategies Group announced that it was suspending its normal operations because of "continued unresolved commercial issues" with the Iraqi Ministry of Transport.

The company, which took over security at the airport in July last year, says it has not been paid for seven months.

Global said it would continue to maintain its presence at the airport's perimeter fence and main check-point to protect it from insurgent attacks, but it has suspended other security operations such as baggage checks, preventing planes from flying.

Iraqi soldiers were preparing to take over security duties at the airport, which handles around 15 civilian domestic and international flights daily.

"This issue is related to Iraq's sovereignty, and nobody is authorised to close the airport," the acting transportation minister, Esmat Amer, said.

Mr Amer said the government had been trying since January to renegotiate a now-lapsed $4.5m (£2.45m) monthly contract, which Global had signed with the defunct US Coalition Provision Authority before it transferred sovereignty to an interim Iraqi government in June 2004. He confirmed that Global had not been paid since the contract negotiations had resumed.

In June, Global suspended airport operations for 48 hours for the same reason. A Global spokesman said the "payment difficulties" began when the contract was transferred to the Iraqi Ministry of Transport in November 2004.

During the first quarter of this year Global continued to provide security at the airport on the basis of a contract which had been, according to the company, approved but not signed.

A fresh contract, won after an open tender process, covering security from the end of March 2005 has also yet to be signed by the Iraqi Ministry of Transport, the company said.

The company said in a statement today: "In attempting to resolve the issues, Global has been in constant negotiations with senior members of the Iraqi government, which is currently not paying the company for the services it has rendered in helping the economic re-growth of Iraq.

"Once payment has been made by the client, Global will resume its work and thus allow normal air operations to resume, and ensure secure air transport for the thousands of Iraqis and international travellers using the airport each week."

The company also manages security at the heavily fortified Green Zone in central Baghdad - home to Iraqi government offices, parliament, and the US Embassy. It has about 1,100 employees in Iraq - mainly former Nepalese and Fijian soldiers. Five hundred Global workers staff the airport.