Financier Exposed for Funneling $300M to Haftar’s Failed War Effort

Investigation Reveals $300m Financial Pipeline Behind Haftar’s Failed Tripoli Siege

A major investigative report has identified the financial architecture that supported Khalifa Haftar’s bloody attempt to seize the Libyan capital, revealing how private financiers and foreign banks funneled hundreds of millions of dollars into the 2019–2020 offensive.

The report, published Tuesday by the investigative group The Sentry, highlights the role of businessman Ahmed Gadalla as a central figure in securing funds for the Haftar family. According to the investigation, Gadalla facilitated approximately $300 million in loans from a small Abu Dhabi-based bank in the United Arab Emirates (UAE) just before the assault began.

Financing a Failed War

The assault on Tripoli by the Libyan National Army (LNA) was a massive logistical undertaking, estimated by The Sentry to have required an upfront mobilization of roughly $700 million.

The investigation suggests these funds were instrumental in:

• Financing the deployment of Russia’s Wagner Group mercenaries.
• Procuring military hardware and operational supplies.
• Sustaining a campaign that resulted in hundreds of deaths and the displacement of hundreds of thousands of civilians.

Despite the significant investment, the offensive collapsed in 2020 after LNA forces were pushed back by the UN-recognized Government of National Accord (GNA). However, while the military campaign ended, the financial fallout persists. The report states the $300 million in loans remains largely unpaid, effectively transferring the debt burden to the Libyan public.

A Rising Economic Powerhouse in the East

Far from facing repercussions for the failed campaign, Gadalla has allegedly expanded his influence. Under the protection of Saddam Haftar, the commander’s son, Gadalla has reportedly integrated himself into the core of eastern Libya’s financial sector.

The Sentry alleges that Gadalla now exerts control over several major institutions, including:

• Bank of Commerce and Development (BCD)
• Wahda Bank
• National Commercial Bank

The report claims these institutions have been used to facilitate "large-scale letter-of-credit fraud" and money laundering. Furthermore, Gadalla is linked to the circulation of "Russian-printed dinars," a counterfeit currency operation that has severely destabilized the Libyan dinar’s value.

Links to the Sudan Conflict

The investigation also exposes a broader network involved in violating international law. Gadalla is accused of facilitating the transfer of military equipment to Sudan’s Rapid Support Forces (RSF), in defiance of a United Nations arms embargo.

In July, a 145-meter container ship operated by Gadalla was intercepted by European authorities near Crete. Though shipping documents claimed the vessel carried civilian goods, inspectors discovered hundreds of containers of ammunition and military vehicles loaded in the UAE and destined for Benghazi, a known transit point for the RSF.

The conflict in Sudan, which began in April 2023, has created the world’s largest displacement and hunger crisis, with tens of thousands killed.

Calls for International Sanctions

The Sentry warns that the continued "impunity of second-tier operators" like Gadalla is fueled by the fragmentation of Libyan state institutions and a "diplomatic void."

The group is now urging the United States and the European Union to implement targeted sanctions against Gadalla and his corporate network. Without international intervention, authors of the report argue, Libya’s economic foundations will continue to erode under the weight of corruption and illicit financing.

Neither Ahmed Gadalla nor the financial institutions named in the report provided comments to The Sentry regarding the allegations.