Ahmed Gadalla Sues George Clooney's Watchdog Over $300M Fraud and Russian Mercenary Allegations

Libyan steel magnate Ahmed Gadalla has brought defamation proceedings against The Sentry, the investigative organisation co-founded by George Clooney, challenging allegations linking him to financial misconduct and the funding of Russian mercenaries.

The case concerns an investigation into his alleged role in financing military commander Khalifa Haftar's failed offensive against Tripoli. Gadalla disputes the report's central account of $300 million (£226.3 milion) in loans and accuses the organisation of publishing false allegations without adequately checking them. Coverage of the proceedings emerged on 19 October.

The figure refers to borrowing discussed in the investigation, not an established damages award or a confirmed amount sought in the lawsuit.

The $300 Million Dispute

The Sentry's report, Eastern Libya's Top Money Man, alleges that Gadalla used companies based in the United Arab Emirates to obtain $300 million in loans from Abu Dhabi-based al-Masraf bank before Haftar's 2019 assault on Tripoli.

According to the organisation, a deposit from the Libyan Foreign Bank guaranteed the loans, and the money was subsequently directed towards the military campaign. The report alleges that the funding likely included payments to Russia's Wagner Group.

That qualification matters: the report describes the mercenary payments as likely, rather than presenting every alleged transfer as conclusively documented. Gadalla challenges the underlying narrative.

Clooney's Criticism of the Press Enters the Case

Gadalla's legal argument also invokes Clooney's public criticism of inaccurate reporting about his family. According to the account of the court papers, Gadalla argues that the organisation failed to apply standards its co-founder has demanded from news outlets. His complaint describes the report's 'entire narrative' as false and alleges that The Sentry refused to publish his response.

The papers refer to Clooney's condemnation of a British tabloid story about his family in July 2014. The comparison forms part of Gadalla's accusation of inconsistent standards; it is not a judicial finding against Clooney or the organisation.

The Sentry Gives a Different Account

The Sentry's published investigation states that it sought comment from Gadalla, his companies and the banks concerned before publication. It says none responded to those requests.

That statement differs from Gadalla's reported allegation that his response was excluded. The available accounts do not establish whether the parties are referring to the same correspondence or period.

The organisation also recommended targeted sanctions against Gadalla, his companies and associates. These recommendations were calls for government action, rather than proof that sanctions had been imposed or criminal wrongdoing established.

A Challenge to an Investigative Organisation

The Sentry launched in July 2015, co-founded by Clooney and human rights activist John Prendergast. Its founding announcement described an initiative combining public-source information, field research and network analysis to investigate how conflict generates money for perpetrators and their financial supporters.

The Gadalla proceedings challenge the accuracy of one such investigation. Although Clooney's profile and statements feature prominently in coverage, the case concerns reporting published by the organisation he helped establish.

Neither The Sentry's allegations nor Gadalla's claim that they are false should be treated as a court's conclusion. The central dispute remains whether the investigation can substantiate its account of the financing and Gadalla's alleged involvement.