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‘Britain’s biggest hidden aid scandal’ sees ‘UK’s millions’ siphoned by Islamic terrorists

Millions in UK aid meant for war-torn regions may be lining the pockets of militants, sparking concerns over a hidden scandal that few are willing to discuss.

Boko Haram

a man claiming to be the leader of Nigerian Islamist extremist group Boko Haram Abubakar Shekau (Image: AFP)

Militant groups such as Hamas, the Houthis, and Boko Haram are allegedly siphoning off millions of pounds from UK aid schemes designed to help those in war-torn regions, according to a national security think tank reported on by the Daily Mail.

The Henry Jackson Society (HJS) warns that the Cash and Voucher Assistance (CVA) scheme is highly vulnerable to abuse, calling it “Britain’s biggest hidden aid scandal”. While the UK Government does not disclose how much of Britain’s aid budget is distributed as cash , HJS analysis indicates that the UK handed out between £225-£310million in cash aid in 2024.

Although not all of this money would have ended up in the hands of militants, a significant portion is believed to have been taken by terror groups.

Militants control markets, money-changers, and supply chains in war zones

In many war-torn areas, militants often control markets, money-changers, supply chains, and checkpoints. As a result, any cash injected into these systems becomes a direct revenue stream for these groups.

‘Britain’s biggest hidden aid scandal’, says report author

Andrew Fox, HJS senior research fellow and author of the report “Cash to Terror”, stated, “This is Britain’s biggest hidden aid scandal. We are handing out up to £300million a year in cash – and in places like Gaza, Yemen and Nigeria, that money is being bled off by militants before it ever reaches civilians.”

The report found that Hamas-linked moneychangers are taking 20-40 per cent of the $42.5million pumped into Gaza in aid in recent weeks. Civilians are even being forced to buy back stolen aid from Hamas-run markets in the strip.

In Yemen, which received $161million in aid vouchers last year, more than 10 per cent of food aid was being stolen, while Houthis taxed traders, according to the report. In Nigeria, which received around $284million in aid vouchers, militant groups like Boko Haram are creaming off cash by taxing fish, livestock, farms, and transport.

Abubakar Shekau

Boko Haram factional leader Abubakar Shekau holding a heavy machine gun (Image: AFP)

UK urged to suspend aid to areas controlled by proscribed terror groups

The HJS has called for more transparency on the UK’s spending on cash aid and has demanded audits in war zones. It also called for a suspension of aid to areas controlled by proscribed terror groups and has urged the UN and NGOs to tighten their controls or risk losing funding.

A Foreign Office spokesman said, “We completely reject the findings of this report. We thoroughly vet all aid partners and programmes are continually monitored to make sure money is spent as intended.”

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