At least, this was how they made it look on the surface, but the truth was, one side was acting in allegiance with the world government, who had been stealing the power from one side of groups battling for some time. The other side assists the world government in gaining more power so as to receive favor and some other benefits.
The other group is trying to regain their power and return things to how they used to be because the world government gaining more power affected the economy of the city in a negative way.
In this situation, the world government hid in the shadows like they had nothing to do with both groups battling each other. Gustav felt this was the main reason why they had asked the MBO not to get involved when they could easily end the war.
They were probably waiting for one side of the group to destroy the other side so they could finally be able to grasp onto more power.
Leoluch city had the resources they wanted after all.