Dalkom Somalia, co-owned by the Somali national intelligence and security agency (NISA) director, has been unveiled as the sole representative for Chinese tech giant Huawei Technologies Ltd.

The disclosure, outlined in a memo from Huawei Technology (Kenya) Company Limited, designates Dalkom Somalia to handle all matters related to equipment type approvals in Somalia.

Initially, Dalkom Somalia entered the market as an internet service provider. However, following its recent registration, the company has been granted a monopoly to supply telecommunications equipment in the country.

Major telecom players, including Hormuud Telecom, Somtel, Telesom, and Golis, have expressed dissatisfaction with this move, refusing to comply with the directive. This has led to tensions, with the NISA director targeting key officials and employees of these telecom companies.

Parliamentary sources suspect that funds from a recent USD 35 million payment from the International Finance Corporation (IFC) intended for developmental projects may have been diverted to illegally invest in Dalkom Somalia Limited.

The alleged involvement of Mahad Salad (NISA director) and Mustafe Yasin, head of the Somali National Communications Authority (NCA) in the company adds complexity to the situation.

Despite attempts to seek responses, the NISA external relations office remained unresponsive, while Mustafe Yasin declined to comment on Dalkom Somalia and its registration.

The NCA website indicates that Dalkom Somalia, originally an internet service provider, is now labeled as an “International Communications Infrastructure Services Provider (CIP).”

The circumstances surrounding the change remain unclear.

On its website, Dalkom identifies itself as a prominent telecommunications provider based in Somalia since 2003. It says it has operated as a limited liability company registered in both Somalia and the United Arab Emirates.

Dalkom Somalia emphasizes its private ownership and funding by Somali individuals and investment companies. The company proudly notes its ownership stakes, with a 10% equity holding in EASSY and a 9.13% stake in WIOCC. Additionally, through WIOCC, Dalkom Somalia says, it has equity interests in EIG and WACs submarine cables.

However, sources from both telecommunication companies and independent individuals assert that Dalkom Somalia, originally an Internet Service Provider (ISP) company, has undergone a transformation into an international entity to capitalize on a recent contract for the supply of telecommunications equipment.

The individuals we interviewed affirmed that the NISA director and Mustafe Yasin, leveraging their positions within the government offices of NISA and NCA, have acquired shares and facilitated the contract to maximize financial gains.

It is noteworthy that just a week ago, Said Diriye, a telecommunications marketing operator from Hormuud Telecom, was reportedly apprehended in Mogadishu by plain-clothed NISA officers, as per his family’s account.

The arrest was allegedly linked to a disagreement arising from non-compliance with the decision regarding Dalkom Somalia as the exclusive company for importing telecom equipment into the country. Subsequently, Said Diriye has been released on bail.

Adding to the concerns of local telecom companies is the relationship between Dalkom Somalia, co-owned by the director of Somalia’s spy agency, and Huawei. Huawei has faced allegations and concerns regarding its equipment potentially enabling surveillance by the Chinese government due to perceived connections with the country’s military and intelligence agencies.

Upon contacting the Dalkom Somalia representative in Mogadishu, they directed us to address all telecommunications contract-related inquiries with the NCA.