A panel of MPs was advised £900m connected to the ousted tyrant is held in the UK.
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Jason McCue rejected Government guarantees that universal law kept the cash being utilized to reward casualties.
He was talking as relatives took their fight for remuneration to Westminster.
The Northern Ireland Affairs Committee is looking at the Government's inability to get remuneration for casualties of Libyan-upheld IRA assaults.
Gaddafi equipped the IRA from the mid-1980s, supplying Semtex plastic hazardous utilized as a part of a progression of abominations.
The now-perished despot and his associates saved billions of pounds the world over.
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The greater part of the plunder, including an intricate web of venture stores and a string of extravagance properties, was solidified in 2011.
Mr McCue speaks to around 200 British casualties of IRA assaults did with Libyan-supplied explosives.
Showing up before MPs yesterday, he blamed the Government for fizzling casualties. "Reports and confirmation demonstrate that an approach existed that put arms and oil and organization in front of equity, and that casualties' advantage were worthless," he said.
The cross-party advisory group was let one know Gaddafi reserve in the UK contained around £900m.
"We have data that there is a store of £900m here which has been sat, not procuring interest, which is in administration which we'd like to be utilized - £900m is accessible," Mr McCue included.
He asserted the Government had stayed away from inquiries on Gaddafi's money. "When we asked the Government the amount of cash there is, they declined to let us know," he included.
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Reacting to an inquiry from DUP MP Gavin Robinson, Mr McCue demanded Gaddafi's advantages could be utilized for pay. He dismisses a clarification by Kim Darroch, the national security consultant, that it was unrealistic under universal law.
"I don't know who their attorneys are, however it is conceivable under worldwide law," he included.
The board heard different nations had secured multi-million pound payouts for casualties of Libyan terrorism.
It incorporates a £1.2bn settlement got by the US government taking after the Lockerbie besieging.
Another £35m was paid out in admiration of three individuals executed and 29 harmed in the shelling of a disco in Berlin in 1986. What's more, the French government secured £170m after 170 of its residents were murdered when UTA Flight 772 was exploded over the Sahara desert in 1989.
Autonomous MP Sylvia Hermon said the proof was "profoundly concerning and exceptionally disturbing"
"The British Government seems to have recognized casualties," she said.
Woman Hermon indicated remuneration secured for British casualties of Lockerbie and the group of PC Yvonne Fletcher.
PC Fletcher was murdered when shots were discharged from inside the Libyan Embassy in London as she policed an exhibition in 1984.
"They seem to have been picking and picking casualties, which is truly, profoundly disquieting," the North Down MP included.
The advisory group additionally got notification from casualties campaigner Willie Frazer.
He told MPs five individuals from his family, including his dad and uncle, were killed by the IRA.
"What is the British Government about? What is vote based system about? Is it not caring for your residents?"
Mr Frazer said Libya ought to tolerate an abnormal state of obligation regarding the IRA's crusade of dread.
"It's not just about the weapons - it's what ran with it," he included.
"A large number of pounds likewise went to the IRA. The innovation, the insight that they provided for the IRA is simply mind boggling."
Gaddafi was expelled and murdered in 2011 amid the Arab