Iraq's government is asking American security firm Blackwater USA to pay $136 million to the families of Iraqis killed in a recent shooting.

The demand is included in a report of an Iraqi government investigation into the September 16 incident in a western Baghdad square. It charges that Blackwater security guards deliberately killed 17 people in the shooting.

Iraq Demands $136 Million for Families in Blackwater Shooting

The Associated Press says the report also includes a demand that the U.S. government cut its ties with Blackwater within six months. The Blackwater guards were escorting U.S. State Department personnel at the time of the shooting.

Iraq Demands $136 Million for Families in Blackwater Shooting

Blackwater has said its guards responded lawfully to an attack on a U.S. diplomatic convoy they were protecting.

Iraq Demands $136 Million for Families in Blackwater Shooting

The shooting is still under investigation by the U.S. military, the FBI and a joint committee of U.S. and Iraqi officials.

U.S. Secretary of State Condoleezza Rice ordered tighter controls on Blackwater last week, including a requirement for U.S. government agents to accompany private security guards working in Iraq.