By Micah Jonah, April 8, 2026
A recent investigation has revealed that companies linked to Libyan military commander, Khalifa Haftar funneled hundreds of millions of dollars into his unsuccessful 2019–2020 campaign to capture Tripoli, leaving the country’s citizens to shoulder the financial consequences.
The report, released by investigative organization – The Sentry, highlights businessman Ahmed Gadalla as a central figure enabling Haftar’s operations. Gadalla reportedly facilitated $300 million in loans from a small Abu Dhabi bank, providing crucial funds for Haftar’s eastern forces before the assault on Libya’s capital.
The months-long offensive resulted in hundreds of deaths, mass displacement, and significant destruction, costing an estimated $700 million, the report states. Funds were allegedly used to pay the Russian mercenary group Wagner, which supported Haftar’s troops. Despite the collapse of the offensive and the retreat of Haftar’s forces, the loans remain largely unpaid, leaving Libyan citizens responsible for the debt while Gadalla has avoided accountability.
The investigation further claims that Gadalla has since strengthened his influence over eastern Libya’s financial system, under the protection of Haftar’s son, Saddam Haftar. He is said to exert control over key banks, including the Bank of Commerce and Development, Wahda Bank, and National Commercial Bank, allegedly using these institutions for large-scale financial fraud and laundering operations.
Reports also link Gadalla to the procurement of military equipment for Sudan in breach of a UN arms embargo. In July, a container ship operated by Gadalla reportedly transported hundreds of containers of military vehicles, ammunition from the UAE to Benghazi. European authorities later intercepted the vessel near Crete, finding the cargo mislabeled as civilian goods.
Since 2023, clashes between Sudan’s Rapid Support Forces and the national army have devastated the country, particularly in Darfur, creating a massive humanitarian crisis affecting millions.
The Sentry warned that the lack of accountability for financial enablers like Gadalla perpetuates corruption, strengthens armed groups in Libya. The report called on Western governments, including the United States and the European Union, to impose targeted sanctions to prevent further economic erosion.
“Without decisive international action, Libya’s economic and institutional foundations will continue to weaken, fueling instability and violence,” the report concluded.
