The USA: bringing law, order and sex slavery to the people of Iraq.

A US military contractor accused of human rights violations has won a multi-million-dollar contract to police post-Saddam Iraq, The Observer can reveal.

DynCorp, which has donated more than £100,000 to the Republican Party, began recruiting for a private police force in Iraq last week on behalf of the US State Department.

The awarding of such a sensitive contract to DynCorp has caused consternation in some circles over the company's policing record. A British employment tribunal recently forced DynCorp to pay £110,000 in compensation to a UN police officer it unfairly sacked in Bosnia for whistleblowing on DynCorp colleagues involved in an illegal sex ring.

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DynCorp personnel contracted to the United Nations police service in Bosnia were implicated in buying and selling prostitutes, including a girl as young as 12. Several DynCorp employees were also accused of videotaping the rape of one of the women.

When Dyncorp employee Kathy Bolkovac blew the whistle on the sex ring she was dismissed by the company for drawing attention to their misbehaviour, according to the ruling of a British employment tribunal in November.