A new investigation by The Sentry, an investigative and policy organisation, has revealed that Libyan businessman Ahmed Gadalla played a pivotal role in channeling hundreds of millions of dollars into Khalifa Haftar’s unsuccessful 2019–2020 offensive on Tripoli. Gadalla, described as a “key enabler “for Haftar family members, secured $300m in loans from a minor bank in Abu Dhabi, United Arab Emirates (UAE), prior to the offensive. The offensive, which was supported by forces loyal to the renegade military commander, resulted in the deaths of hundreds and the displacement of hundreds of thousands of Libyans.
The Sentry’s report, published on Tuesday, states that the offensive required a total of approximately $700 million to mobilise. Much of this money is believed to have been used to finance operations, including payments to Russia’s mercenary Wagner Group, which supported Haftar’s offensive. However, after the campaign’s collapse, the loans remained largely unpaid, leaving the Libyan public to bear the financial burden. Gadalla himself has faced no accountability for his actions, according to the report.
The report also alleges that Gadalla has since expanded his influence across eastern Libya’s financial system, under the protection of Haftar’s son, Saddam. Gadalla is said to have transitioned from an obscure financier to a dominant force in eastern Libya’s economy, controlling key banks such as the Bank of Commerce and Development (BCD), Wahda Bank, and National Commercial Bank. The investigation claims that Gadalla has used these institutions to facilitate large-scale letter-of-credit fraud and to launder illicit profits.
Furthermore, the report links Gadalla to the circulation of counterfeit “Russian-printed dinars, “which has weakened Libya’s local currency. The Sentry also asserts that Gadalla has been involved in efforts to procure and transfer military equipment to Sudan, in violation of a UN arms embargo. Plans to secure Chinese drones, ammunition, and armoured vehicles were reportedly hatched. In July, a container ship operated by Gadalla was intercepted off the Greek island of Crete, carrying hundreds of containers of ammunition and military vehicles despite shipping documents listing civilian goods.
The Sentry warns that the impunity of such operators is sustained by the fragmentation of Libyan state institutions and the diplomatic void. The group calls on Western governments, including the United States and countries in the European Union, to impose targeted sanctions on Gadalla and his network, asserting that without concerted international action, Libya faces the continued erosion of its economic foundations.
Source: aljazeera
