The U.S. State Department's renewal of Blackwater's contract to provide security in Iraq "is bad news," an adviser to Iraqi Prime Minister Nuri al-Maliki said.

Blackwater guards shot and killed 17 people, including women and children, last September, prompting an outcry and protest from Iraqi officials.

"This is bad news," al-Maliki adviser Sami al-Askari said. "I personally am not happy with this, especially because they have committed acts of aggression, killed Iraqis, and this has not been resolved yet positively for families of victims."