Up to half of the food aid intended for needy Somalis is routinely diverted, according to a United Nations report, but the World Food Programme called the allegation "unsubstantiated".
The report by the UN Monitoring Group on Somalia, originally tasked with tracking violations of the arms embargo, was very critical of the UN food agency and condemned a de facto cartel of distributors. The report - submitted to the UN Security Council's sanctions committee, with extracts seen by AFP - said access to WFP contracts should in theory be subject to tender.
But in fact, there has been "little or no scope for genuine competition".
"Preliminary investigations by the Monitoring Group indicate the existence of a de facto cartel, characterised by irregular procedures in the awarding of contracts by the WFP country office, discriminatory practices and preferential treatment," the report said.
The Monitoring Group found that WFP transportation contracts are the single largest source of revenue in Somalia and "just three contractors receive 80 per cent of that business", which weighed in at 200 million dollars in 2009.
"For more than 12 years, delivery of WFP food aid has been dominated by three individuals and their family members or close associates," it said.
"These three men have become some of the wealthiest and most influential individuals in Somalia," the group said, adding all three had been mentioned over arms sales and insurgent connections in some of its previous reports.
The UN report pointed out that the vast majority of humanitarian assistance to the troubled Horn of Africa country consists of food aid, most of which is provided by the WFP.
In 2009, it accounted for 60 per cent of the total UN assistance budget, or $485 million.
The report explained that because WFP requires that implementing partners themselves certify the delivery of food, they often agree with the transporters and other players to divert the aid and share the proceeds.
"Percentages vary, but sources interviewed by the Monitoring Group describe an approximate division of 30 per cent for the implementing partner and local WFP personnel, 10 per cent for ground transporter, and five to 10 per cent for the armed group in control of the area," it said.
"The remainder of the consignment is distributed to the recipient population," it said, pointing out that transporters themselves admitted "the system offers a variety of opportunities for diversion all along the supply chain".