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The US Department of Justice has started an investigation into the January 27 shootout, in which CIA contractor Raymond Davis had killed two youths in Pakistan.

"Yes I confirm that the US Department of Justice is conducting [an enquiry] into the shooting incident that claimed two lives at Lahore's Qartaba Chowk on Jan 27," the Dawn quoted Alberto Rodriguez, Country Information Officer/ Press Attach‚ of the US Embassy, as saying.

On March 16- the same day when Davis was indicted for double murder- he was freed and quickly flown out of Pakistan after the heirs of the two victims- Faheem and Faizan- told a local court that they had accepted blood-money worth 200 million rupees.

Replying to queries, Rodriguez said the US did not pay the blood money to the legal heirs of the two victims, but did not respond when asked who arranged the compensation money.

On being asked whether the families of Faheem and Faizan had been flown to the US or Saudi Arabia, Rodriguez said: "I have nothing for you on this matter."

A third Pakistani national- Ibadur Rehman- was killed when a US consulate car trying to assist Davis knocked him down on January 27 in Lahore.

Regarding the Ibadur Rehman case, Rodriguez said that Pakistan authorities were investigating the matter.

Meanwhile, Ibadur's brother Sajjadur Rehman has said that his family and friends would continue their protest against the police for not taking any concrete action for the arrest of the US Consulate driver who crushed Ibad to death.

He also condemned the behaviour of the Foreign Ministry for not responding to the Punjab government's letters seeking the arrest of the accused driver from the US Consulate.