Corruption and Terrorism Financing Drive Washington to Suspend Aid to Libya
A report by Africa Intelligence reveals that millions of dollars in U.S. aid have been diverted into the pockets of Libyan officials and militia members instead of reaching displaced and homeless populations.
The United States has announced the suspension of all humanitarian aid to Libya, a decision that the French intelligence center Africa Intelligence attributes to the increasing risks of corruption and embezzlement within these funds. This presents a significant challenge in a country plagued by corruption, political divisions, and the growing influence of armed groups within official state institutions.
The report highlights how part of U.S. funding has been redirected to support armed groups in the country, including some classified as terrorist organizations. This poses a major obstacle to the United Nations mission’s efforts to unify Libya’s institutions and disarm militias.
According to the report, millions of dollars in aid have been diverted into “the pockets of Libyan officials and militia members” instead of being allocated to displaced and homeless populations, who constitute the vast majority of those in need. Evidence suggests that certain Libyan entities have used the aid to finance armed groups, some of which are designated as terrorist organizations, in direct violation of Washington’s strict conditions prohibiting the funding of any entity that threatens regional security.
The report further states that Libya’s political division between the East and West, coupled with the lack of an internationally recognized central authority, has left Washington unable to ensure aid is distributed transparently and fairly. Moreover, rising attacks on foreign diplomatic facilities in Libya—including direct threats against a U.S. mission in the country’s south—have further complicated the situation.
Humanitarian organizations, including the United Nations High Commissioner for Refugees (UNHCR), have warned that Washington’s decision could exacerbate the suffering of approximately 1.2 million Libyans who rely on international aid for food and medicine. However, the intelligence report notes that continuing aid without strict oversight “fuels the conflict and worsens the crisis.”
Since the outbreak of the Libyan crisis in 2011, the country has experienced prolonged instability and political fragmentation between the East and West, resulting in a deteriorating security, economic, and humanitarian situation. The lack of a recognized central authority has led to widespread corruption and the diversion of funds to militias.
Libya ranks among the world’s most corrupt countries, placing 173rd out of 180 in Transparency International’s 2024 Corruption Perceptions Index.
The U.S. decision to suspend humanitarian aid underscores the severe challenges facing Libya, including corruption, political divisions, and the dominance of militias. While the international community strives to push Libyan factions toward a political settlement, the greatest challenge remains ensuring a fair distribution of aid and preventing its misuse to support armed groups—a task complicated by the militias’ entrenched influence.
This decision also reflects the U.S. administration’s shift in regional policy, with a renewed focus on reallocating aid to other countries amid intensifying regional and global competition.
