A Bermudian is one of two foreigners who has gone underground after Kenyan government officials found they were operating an illegal telephone exchange.

According to a report in the East African Standard in Kenya, the un-named Bermudian and a Tanzanian were operating satellite equipment (Very Small Aperture Terminal) (Vsat) without a licence from the Communications Commission of Kenya (CCK).

The two, who are registered as investment bankers with the Kenya's Registrar General, were running a company called Data Global Company Limited and operating their own list of subscribers, parallel to Telkom Kenya. The company Data Global is believed to have fleeced the Government of more than $5 million in the three years they have operated the illegal exchange at Lonrho House.

Officers from the CCK discovered the “exchange,” while on a routine check of Vsat equipment at the Lonrho House rooftop.

Mr. Francis Wangusi, the Company Director in charge of Licensing and Compliance at the CCK said the cost of the gadgets confiscated is over $300,000 and urged the public to be observant and report any equipment that could be questionable.

He explained that the company, Data Global has been running its own list of subscribers who pay directly subscription money and are issued with identification numbers which they use to call through to the 80 lines given to it (Data Global) by Telkom Kenya.

“From here the number is recorded at Telkom Kenya as a local call when in fact it has already been converted through the exchange here (Data Global office) into an international call,” said Wangusi.

He further explained that once the call is converted to an international line, the communication is now through satellite (Vsat technology) hence the loss of revenue by Telkom Kenya. Wangusi, who was accompanied by fellow officers, George Khojallah and Daniel Waturu, said Data Global which is registered as an Accounting Firm and Consultancy in Tax Services, also had four mobile phone lines .

“One wonders how such a company could only have three desks and several large empty offices,” said Wangusi. Wangusi said the company has also been responsible for terminating international voice traffic from Telkom Kenya lines, adding that it has been running a large volume of communication traffic causing a sharp drop in Telkom Kenya traffic.

He questioned why Telkom Kenya could issue such a large volume of lines to one subscriber and warned that such business could be a danger to state security. He urged the Government to put in place a system through which officials from the CCK could vet communication equipment that is brought in, in order to put in check entry of illegal Vsat equipment.

Wangusi also called on property owners to keep checking on their tenants to ensure that what they have registered is what they are actually doing in their premises.

It is feared that the operators could have had terrorist links or doing drug business that needs communication with the outside world constantly. Kenya has seen some of the most serious terror attacks in the wake of the September 11, 2001 attacks.