New Delhi, Jan. 9 -- Somalia's government on Thursday denied an allegation by the U.S. government that authorities in Mogadishu destroyed an American-funded warehouse belonging to the World Food Program and seized food aid earmarked for impoverished civilians.

The U.S. State Department said Wednesday that it has suspended all assistance from Washington to Somalia's federal government over the allegations, saying the Trump administration has "a zero-tolerance policy for waste, theft and diversion of life-saving assistance."

A senior U.S. State Department official said authorities at the Mogadishu port demolished the warehouse of the World Food Program, a Rome-based U.N. agency, at the direction of President Hassan Sheikh Mohamud "with no...