Although a professed admirer of Geldof's generosity and concern, Fox News television host Bill O'Reilly has been critical of the Live Aid producer's oversight of the money raised for starving Ethiopian people, claiming (in June 2005) that much of the funds were siphoned off by Mengistu Haile Mariam and his army. O'Reilly believes that charity organizations, operating in aid-receiving countries, should control donations, rather than possibly corrupt governments. Tim Russert, when interviewing Bono on Meet the Press shortly after O'Reilly's comments, addressed this concern of O'Reilly and others to the singer. Bono responded that corruption, not disease or famine, was the greatest threat to Africa, agreeing with the belief that foreign relief organizations should decide how the money is spent. On the other hand, the singer said that it was better to spill some funds into nefarious quarters for the sake of those who needed it, than to stifle aid because of possible theft. Other critics have likewise argued that donations to charity organisations often end up being used by corrupt governments. Much of the money raised by Live Aid went to NGOs in Ethiopia, some of which were under the influence or control of the Derg military junta. Some journalists have suggested that the Derg was able to use Live Aid and Oxfam money to fund its enforced resettlement and "villagification" programmes, under which at least 3 million people are said to have been displaced and between 50,000 and 100,000 killed.

Geldof was apparently not happy about The Hooters being tacked onto the bill as the opening band in Philadelphia. He felt pressured into it by Graham and local promoter Larry Magid. Magid, promoting the concert through Electric Factory Concerts, argued that the band was hugely popular in Philadelphia, despite their first major label album Nervous Night being released less than three months beforehand. Geldof let his feelings be known during an interview for Rolling Stone saying: "Who the fuck are The Hooters?" The Hooters did get their revenge in December, 2004, when Geldof appeared on the bill with the Hooters in Germany as their opening act. The anarcho-punk band Chumbawamba dedicated their first album Pictures of Starving Children Sell Records to criticize Live Aid.

In March 2010, Martin Plaut of the BBC reported that a large amount of the money was spent on weapons instead of food, due to rebels posing as merchants. He quotes people associated with the Tigrayan People's Liberation Front, who claim aid organizations such as the Relief Society of Tigray were used to funnel money to the rebels. He interviewed Gebremedhin Araya who claimed he posed as a merchant selling grain, got money from Christian Aid, and gave it to the TPLF. Plaut also interviewed Aregawi Berhe who claimed the TPLF and allies 'fooled' aid workers, and that large amounts of money were spent for weaponry and political activities. Plaut also quotes a 1980s CIA report entitled 'Ethiopia: Political and Security Impact of the Drought', which claimed aid money was being diverted to military uses.

Berhe, who is a high-ranking TPLF commander living in exile in The Netherlands, told Deutsche Welle that "the rebel movement, TPFL, had received the money under false pretences – through its development arm, the so-called 'Aid Association of Tigray' (MARET). But MARET belonged to the party. So after the aid from donors and aid charities was collected, it was made available through the budget of the party's central committee – for logistics and financing of the resistance."

Geldof dismissed the claims, saying that "the story and the figures just don't add up".

(In order of appearance, times given are British Summer Time and indicate the start time of the performance. Key: W – London Wembley Stadium, JFK – Philadelphia JFK Stadium)