Monday October 6, 2025
Mogadishu (HOL) — A dispute between the
newly formed Northeastern State administration and major telecommunications and banking companies has deepened after officials accused the firms of refusing to pay taxes and cooperate with state-building initiatives.
The regional Ministry of Finance alleged that companies including Amal Bank, Telesom, Dahabshiil, and Golis had “openly rejected” their tax obligations and ignored repeated calls since January 2024 to align with fiscal regulations. Authorities also claimed the firms failed to relocate their headquarters to the state capital as part of administrative requirements.
In a joint response, the companies condemned what they described as the “unlawful” closure of several branches, saying the move lacked legal due process and disrupted vital communication and financial services used by thousands of residents. They further accused the administration of introducing an unauthorized levy under the banner of a “state-building contribution” in addition to existing taxes.
Officials from the new administration rejected those claims, saying the companies’ resistance represented a deliberate attempt to undermine legitimate governance. The government accused the firms of “coordinated defiance” and “public misinformation,” alleging that they had politicized compliance to protect private interests.
“The administration is committed to enforcing transparency and accountability,” the Ministry of Finance said, instructing each company to submit tax documentation and respond individually to government cooperation requests.
The companies countered that the restrictions had inflicted heavy financial losses and reputational harm, depriving citizens of services essential to commerce and daily life. “These companies are the backbone of the regional economy,” their joint statement said, noting that they employ thousands and invest in small-scale enterprises that support low-income families.
The companies warned that if the standoff continues, they plan to hold internal consultations and issue a unified response outlining their next course of action.
- With files from the BBC Somali Service