The failure to enforce a 10-year-old UN arms embargo on Somalia is undermining regional efforts to bring peace to the deeply divided country, say UN experts.

They say rival clans and warlords are stocking up on arms ahead of anticipated regional talks in Nairobi aimed at creating greater security in the country.

Their conclusions are contained in a report by an expert panel set up by the UN Security Council to monitor enforcement of the 1992 arms embargo and assess how to improve.

After President Siad Barre was ousted in 1991, most of Somalia has been a chaotic patchwork of small and occasionally warring fiefdoms.

President Salat controls little territory

The transitional government - which was established in 2000 - controls only portions of the capital Mogadishu and its authority does not even extend to the capital area's airport or ports.

The report warns that arms deals have been on the rise since late 2001 - although the overall flow of weapons into Somalia was small compared to other African conflicts.

It says the deals were being financed through Somali businesses and drug trafficking.

The deals involve foreign governments, Somalis living outside the country and "terrorist networks".

Arms vendors

Among the neighbouring countries, Ethiopia is mentioned as one of the largest arms vendors to Somalia.

The report says Ethiopia has been selling small calibre arms as well as mortars and anti-aircraft artillery to forces opposed to the Transitional National Government (TNG).

Eritrea, Yemen and Djibouti are the other neighbouring countries mentioned in the report.

Also in the report are other countries outside the Horn of Africa such as Iran, Libya, Latvia, Poland and the United States.

Ethiopia has been named as one of the main arms vendors to Somalia

It says the US sold 5,000 assault rifles and 5,000 hand guns to the Somali police force in March 1994.

The deal was concluded not long after the US-led "Operation Good Hope" withdrew from Somalia after US casualties turned public opinion against the operation.

The report calls on the Security Council to tighten up the arms embargo by making it clear that it covered the financing of weapons as well as the trading in arms.