UK Public Funds Went to Terrorists and Gangs, Report Says

A classified British government analysis has found that more than £28bn ($37.5bn) in public funds ended up in the hands of terrorists, criminal groups and hostile foreign states, The Telegraph reported.

The cases reportedly include Covid loans paid to members of the Islamic State, grants to companies linked to Russia and research investments involving firms tied to the Chinese military.

Much of the money is also thought to have gone to organized gangs, including migrant smugglers. Security experts described the findings as a warning that economic warfare can be waged through financial systems.

The report has raised questions about poor vetting of grant and aid recipients. The British government says it prevented more than £7.5bn in fraud over the past year and has strengthened controls.

(mja)