USAID Gifted a Cement Factory to Hamas—How $310 Million in U.S. Taxpayer Money Helped Create Gaza Terror Tunnels
How U.S. Taxpayer Dollars Ended Up Strengthening Hamas' Military Infrastructure
Most people are unaware that USAID, the U.S. government agency tasked with foreign aid and development, gifted in 2016, $310 million of taxpayer money to start a Palestinian cement factory project. The project was a private venture, by a company called Sanad Construction Resources Company (SANAD), the establishment of multiple cement mills and factories which ultimately helped create Hamas' terror infrastructure in Gaza.
Sanad Construction: A Publicly Traded Company with a History of USAID and UNRWA Funding
Sanad Construction Resources Company (SANAD) is a Palestinian publicly traded company, in PEX (Palestine Stock Exchange), it has profited handsomely from the purchase of cement as foreign aid, particularly from USAID, UNRWA and the UN. Much of its revenue came from cement and construction contracts funded by these organizations. Cement—critical for building tunnels and military infrastructure—was always a priority for Hamas and USAID ensuring it had a cement factory nearby, ensured it had an endless supply. The likelihood that Sanad’s cement ended up in the hands of Hamas is almost certain.
In 2016, during a press conference, where the project was announced, Loai Quwas, the executive head of Sanad said,
“…establishing the factory is a dream of Sanad company and the Palestinian investment fund, adding that it has been started since 2013”
Sanad Construction Resources Company (SANAD) was established in January 2016, the same year it received $310 million in funding from USAID for a Palestinian cement factory project. About a year later, in February 2017, the company began publicly trading on the Palestine Exchange (PEX). The timing of these events should raise questions about the relationship between the funding and the company's rapid growth. The company is considered the largest distributor of cement in Palestine, as it meets approximately 65% of the needs of the Palestinian market.
Immediate Investigation and Accountability
USAID’s involvement in this project sparks a chilling question: How could U.S. tax dollars be blindly funneled into a private venture, with zero oversight or accountability, empowering a terrorist organization? Worse yet, after funding Sanad to build the cement factory, USAID would later purchase cement back from that very same company. This circular flow of money seems less like an aid initiative and more like a dangerous money-laundering scheme, giving Hamas a steady stream of resources while making some very wealthy in the process.
With USAID now shut down, it’s time for a thorough investigation into this $310 million disaster and subsequent purchases. The U.S. government must hold accountable those responsible for enabling a project that strengthened Hamas while squandering taxpayer money. USAID’s complete lack of oversight is a betrayal to every American. USAID’s actions are not a bureaucratic error—it directly contributed to the violence in the region. It's time for transparency, accountability, and reform to ensure that U.S. foreign aid never again becomes a tool for terrorism.
I can’t fathom how much more we’ve funded like this!
I don't understand this bit: Sanad "profited handsomely from the purchase of cement as foreign aid, particularly from USAID, UNRWA and the UN."
The link in that sentence goes to a story that doesn't mention USAID or UNRWA anywhere other than this sentence, which does NOT say they were purchasing cement. In fact, it mentions USAID and UNRWA only to say they SUSPENDED aid:
"Thus, the Palestinian economy maintained its previous growth rate for the year 2018 in spite of the financial crisis that the economy faced . . as well as the continuing decline of external grants and aids, especially the suspension of American aid for government and civil organizations and institutes (UNRWA and USAID)."