Somalia's NISA raids Hormuud Telecom, Salaam Bank amidst business related row

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Somalia's NISA raids Hormuud Telecom, Salaam Bank amidst business related row

MOGADISHU (HORN OBSERVER) – In a dramatic turn of events on Monday, Somali national intelligence (NISA) launched raids on the offices of Hormuud Telecom, the country's largest telecom provider, and its sister bank, Salam Somali Bank.

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Members of NISA were seen outside the Hormuud Telecom HQ in Bakaro market in Mogadishu on Monday.

MOGADISHU (HORN OBSERVER) – In a dramatic turn of events on Monday, Somali national intelligence (NISA) launched raids on the offices of Hormuud Telecom, the country's largest telecom provider, and its sister bank, Salam Somali Bank.

The raid, stemming from a long-standing dispute over business competition, saw heightened tensions as both parties exchanged accusations and the situation unfolded.

The initial raid occurred on Sunday at Hormuud Telecom’s branch in the city center, resulting in the detention of two employees, as confirmed by Hormuud in a statement issued on Monday.

The telecom giant revealed that armed NISA members, who displayed violent behavior, demanded records of personal bank statements and mobile money (EVC) transactions from the company. Hormuud refused to comply, leading to the intimidation of employees and the subsequent detention of two staff members.

In response, NISA issued a counter-statement, alleging that the detained Hormuud staff had links to a "terrorist group” without providing any supporting evidence.

The intelligence agency continued its series of raids on the company’s branches in various locations, including Soobe, Hamarweyne, Tre Piano, and the headquarters in Bakaro Market.

Hormuud confirmed that three senior officials from both Hormuud Telecom and Salam Bank were among those detained.

The Lower House of Somali lawmakers swiftly condemned the violence against Hormuud, initiating a parliamentary motion to demand the removal of NISA director Mahad Salaad, whom they hold responsible for the telecom company raid.

President Hassan Sheikh Mohamud, who was in Galmudug’s Dhusamareb town, was forced to cut short his stay and returned to Mogadishu to address the escalation of the crisis.

HOW THIS ROW BEGAN

The origins of the dispute can be traced back several months, with tensions rising between Hormuud Telecom and NISA. The conflict emerged when it was revealed that NISA director Mahad Salaad and his ally, the National Communication Agency (NCA) director Mustaf Yasin were involved in launching a new telecom company, in which they are allegedly held partial shares.

In October 2023, Yasin, in a memo seen by Horn Observer, proposed a new policy requiring all telecom companies to use an "authorized agent” for equipment purchases from abroad—a company co-owned by Yasin himself.

The Chinese giant Huawei had also informed the local telecom companies about the requirement of the authorised agent for equipment purchases, as proposed by the Somalia’s NCA director.

Hormuud Telecom, however, refused to comply with these demands.

Following Hormuud’s refusal, the company experienced a series of terror attacks, resulting in the loss of eight staff members and injuries to 14 others in bombings across Mogadishu.

Telecom masts and vehicles owned by Hormuud were also targeted and destroyed in what appears to be a dangerous escalation of the business competition dispute.