Somalia's only internet company and a key
telecoms business have been forced to close
because the United States suspects them of
terrorist links.

The two firms, Somalia
Internet Company and
al-Barakaat, both
appear on a US list of
organisations accused
of funnelling money to
the al-Qaeda network
and featured in a UN
Security Council
resolution.

Both companies have stated they are not
linked to terrorists.

Along with denying all internet access to
Somalis, the closures have severely restricted
international telephone lines and shut down
vitally needed money transfer facilities.

Correspondents say the closure of the
companies will have a devastating effect on
the country, which desperately needs the
services they provide.

Desperation

Hassan Barise in Mogadishu told the BBC's
Network Africa programme more than 80% of
Somalis depended on money they receive from
relatives outside the country.

He said all internet
cafes had now shut
down and international
phone lines run by two
other companies were
failing to cope with the
extra pressure of calls.

He also pointed out
that the United
Nations, local and
international aid
agencies, as well as
the government itself
all relied heavily on
internet access, now denied.

"I would say it is very depressing and if I could
find any stronger word than that I would say
it," he said.

He added the impact would be felt even more
strongly because the cuts have come during
the holy month of Ramadan.

Shutdown

On 7 November, the Bush administration
released the list of 62 organisations and
individuals accused of financial links with
Osama Bin Laden.

Reports say the Somali Internet Company was
forced to close when it realised that its
international gateway had been cut off.

Al-Barakaat, Somalia's
largest company with
interests in
telecommunications,
banking and postal
services, closed its
financial businesses
after its assets were
frozen.

Its international
telephone service was
then shut down when
its international
gateway - run jointly by AT&T and British
Telecom - was also cut off.

The company, which has 600 shareholders, is
the largest employer in Somalia.

Hundreds of thousands, if not millions of
Somalis depend on it to transfer money
throughout the world.

Somalis living abroad use it to send money to
their relatives back home as there are no other
banking systems in Somalia since the downfall
of the Siad Barre regime in 1991.

Somalia's prime minister has issued a decree
appointing a special committee to investigate
al-Barakaat, as well as all other remittance
companies.