In Late 1991, A Few Months After Colonel Khalifa Haftar Arrived in the United States Following His Defection from Gaddafi's Army, He Was Left Captive by Chadian Forces After the 1987 War.
During that conflict, Haftar led Libyan forces into Chad in a final attempt by Gaddafi's regime to seize the resource-rich Aouzou Strip. However, Haftar made several mistakes, resulting in his capture along with 400 soldiers by Chadian forces.
Gaddafi denied the presence of Libyan troops in Chad and claimed ignorance of Haftar's existence, famously asking, "Do we have a soldier named Haftar? Is he a policeman or what?" Despite Gaddafi's denial, Haftar was soon assisted by the CIA and collaborated with Libyan exiles, including opposition leader Muhammad Magarief, who helped him recruit and train about 1,200 Libyans in Chad with the goal of overthrowing Gaddafi.
Move to the United States
However, the plan was delayed by a military coup in Chad, which ousted Hissène Habré and exposed the conspiracy to overthrow Gaddafi. This led to Haftar and his soldiers being expelled from Chad and transported to the U.S. by the CIA.
In Virginia, Haftar established training camps to prepare his troops for commando operations. After two years, the moment for the coup arrived—a coup led by Haftar from U.S. soil, directing his operatives within Libya. The coup failed, resulting in the capture of its perpetrators by the Libyan army, some of whom were executed and others imprisoned, including Haftar's current ally, General Abdel-Razek al-Nadhouri.
What was shocking, however, was an interview with Muhammad Magarief, the former head of the Libyan National Congress and a former ally, when asked by a reporter:
Do you now believe, for the truth and history, that Haftar was the one who informed Gaddafi?
His response was essentially, "Yes, now I have no doubt about it."
Haftar's Betrayal
Haftar betrayed his men, handing them over to Gaddafi, and was sentenced to death in absentia. He went into hiding and became a lost cause for the Americans until the Arab Spring brought Libya into the spotlight. Haftar re-emerged and received substantial military support from Egypt, the UAE, Russia, and France, becoming one of Libya's most powerful and wealthy figures.
Sources of Wealth
Where did Haftar get his wealth, and how has the ongoing conflict in Libya increased his and his family's enormous fortune? During Haftar’s military service, his assets were not well known. Libyan army officers had modest salaries, despite occasional perks like new cars and scattered bonuses.
After moving to the U.S., Haftar and his family lived in a property provided by the CIA. When Gaddafi attempted reconciliation by gifting him a villa in Egypt, Haftar refused to return, claiming it was a trap, though ironically, he allowed his children to live there and receive a monthly salary from Gaddafi’s regime of $15,000.
Over two decades in America, Haftar and his family accumulated seventeen properties valued at around $8 million. However, this wealth was trivial compared to the control over a nation's economic resources, which Haftar sought to dominate.
Coup Against Legitimacy
Upon returning to Libya, Haftar established what he called the "Libyan National Army" and announced his coup against the Libyan Parliament in Tripoli. He then moved to the eastern region of Barqa, his favored area since the Chad wars, and launched an operation named "Operation Dignity" against what he termed terrorists and extremist groups.
Haftar used the fight against terrorism as a pretext to extend his control over vast areas. He exploited the division between the Tobruk-based parliament and the National Congress in Tripoli, establishing a Central Bank and National Oil Corporation in the east, but failed to convince international governments and companies to cooperate with them instead of Western Libyan institutions.
Instead, he focused on seizing control of oil and gas facilities, starting with those in eastern Libya, then moving south to capture the Sharara and Elephant oil fields, and returning to secure the oil crescent region and its ports.
Control of Libya's Economy
Haftar's attempts to smuggle Libyan oil abroad were largely successful, with his National Oil Corporation handling the bulk of the smuggled oil, valued at over $2 billion annually. The looting extended beyond oil to encompass all Libyan economic activities, which Haftar now controls through a single institution, the Military Investment Authority.
Haftar created this authority to manage agricultural projects, hospitals, infrastructure, and even waste management. The authority began its real work only after appointing Muhammad al-Madani al-Fakhri as its head—a former air force colonel and father-in-law of Haftar’s son, Saddam. This appointment exemplified Haftar’s nepotism in the east.
Haftar granted the authority unlimited economic powers, asking the Minister of Economy and Industry of the unrecognized eastern government to issue laws ensuring the authority's exclusive rights to export scrap metal and supply fuel to ships in Libyan ports.
In the same month, he requested the transfer of ownership of 96 projects in his controlled areas to the authority, arguing that these projects were initially established as facilities for the Libyan Arab Armed Forces and were being looted due to security lapses, with the transfer requested by some project managers.
The authority and its institutions are exempt from taxes and customs duties and have the power to retroactively seize public and private property in the east. Additionally, Haftar controls Libyan smuggling routes—a vital network previously used by Gaddafi to manage tribes and ethnic groups and buy their loyalty, with annual revenues ranging between $1 billion and $1.5 billion.
Smuggling activities flourished, particularly in the south, where they accounted for about 90% of the local economy for the Tebu and Tuareg tribes controlling the routes, some of whom serve in Haftar’s forces.
Haftar now controls two-thirds of Libya’s oil and gas production areas, five of six oil export ports, and four of five refineries.
Despite his inability to export oil officially through legal channels, Haftar can strangle the Libyan economy whenever possible, testing the Tripoli government’s ability to negotiate and seeking alternative methods to increase his financial returns and vast fortune from natural resources.
Haftar's Family Mafia
This wealth extends to his family, with significant shares going to his children. Khalifa Haftar is responsible for supplies and goods at the Investment Authority, while Saddam handles oil and scrap metal trading with Egypt and Turkey and is involved in the theft of Libyan Central Bank funds in Benghazi. He is also accused of torture and murder.
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| Haftar's Family Mafia |
All are known for living a lavish lifestyle both within and outside Libya. For example, Saddam Haftar owns two Arab horses worth over $2 million each, and his wedding last year sparked outrage when he gifted luxury cars and mobile phones to poets who praised him.
Haftar himself froze an American PR company to polish his image with the U.S. administration for a $1 million contract and previously signed a multimillion-dollar deal with an Israeli firm for campaign management.
While Haftar portrays himself as Libya’s savior, his actions and those of his family suggest otherwise. He overlooks the fact that these assets, acquired without legal basis and at the cost of Libyan blood, rightfully belong to the Libyan people, who alone have the right to decide their fate.