Iraq’s communications ministry said on Friday that its contract with a company tied to Iran-backed militias was legal and unrelated to the management of the country’s data network, after a recent US report raised security concerns.

“The contract was concluded according to proper procedures and has no connection with the management of Iraq’s communications network,” the ministry said. It added that operations and data systems remain under the authority of ministry staff.

The statement followed an article in The Atlantic that described the Muhandis General Company as an Iraqi version of Iran’s Revolutionary Guard Corps. The magazine said Prime Minister Mohammed Shia al-Sudani had created the firm and awarded it government contracts, including for fiber-optic maintenance, giving Iran-aligned militias new influence inside Iraq’s economy. The Atlantic also reported that Washington sanctioned the company in October, calling it a front for terrorist groups and corruption.

According to The Atlantic, the Popular Mobilization Forces—an umbrella for mostly Shi’ite militias formed in 2014 to help the army fight Islamic State—have gained wider power under al-Sudani, who has embraced and enriched them through public-works contracts. The report said recent deals with the Muhandis company give the militias something they have long sought: a foothold in Iraq’s data network.

The communications ministry rejected what it called “targeted attacks” against its work and said its projects were being carried out transparently and in line with Iraqi law.