A
Blackwater's statement follows reports of a
The weapons could have been used by a group labeled as terrorist by the
Blackwater has been blamed by Iraqi officials for a
The North Carolina-based company - which has been hired by the
Blackwater had its license to operate in
Meanwhile, the Iraqi interior ministry said it was also investigating if Blackwater had been involved in six other violent incidents in
'Hazy situation'
The weapons smuggling allegations were reported by the News and Observer newspaper in
It quoted two unnamed sources as saying US federal prosecutors were investigating whether any Blackwater staff had shipped weapons, night-vision scopes, armor, gun kits and other equipment to
The newspaper said that in January two former members of staff with the firm had pleaded guilty in
In Saturday's statement, Blackwater said the allegations that it was "in any way associated or complicit in unlawful arms activities are baseless".
"The company has no knowledge of any employee improperly exporting weapons."
The statement did not refer to
But it confirmed that two members of staff had been sacked for stealing company property, without specifying when the action was taken.
"When it was uncovered internally that two employees were stealing from the company, Blackwater immediately fired them.
"The employees, who were former marines and law enforcement, have been convicted and are currently negotiating sentencing in
Responding to allegations that Blackwater employees were the subject of an
"I'm not saying it's not, as sometimes these things can happen, but it's a hazy situation."
The allegations of arms smuggling in
In July,
Investigators are reportedly attempting to determine if any Blackwater weapons could have been sold on the black market and ended up in the hands of the PKK.
PHOTO CAPTION
Blackwater guards in