More Countries Suspend Funding for UN Palestinian Agency; Israel Seeks Replacement, Reports Reuters

LONDON (Reuters) – On Saturday, six European nations announced a pause in funding for the U.N. refugee agency for Palestinians (UNRWA) amid allegations that some of its staff were involved in the Hamas attacks on Israel on October 7. This move follows similar decisions by the United States, Australia, and Canada, significantly impacting a vital source of aid for people in Gaza.

Philippe Lazzarini, the UNRWA commissioner-general, expressed his dismay on social media, stating, “Palestinians in Gaza did not need this additional collective punishment. This stains all of us.” The agency confirmed it has initiated an investigation into several employees and terminated ties with those involved.

Israeli Foreign Minister Israel Katz encouraged other donors to suspend funding, suggesting that UNRWA should be replaced by organizations focused on fostering genuine peace and development once fighting subsides in Gaza. A spokesperson for the U.N. reiterated the agency’s effective track record and withheld commentary on Katz’s statements.

Lazzarini warned that the suspension of funding from these nine countries jeopardizes humanitarian efforts in the region, particularly in Gaza. He stated, “It is shocking to see funds suspended in reaction to allegations against a small group of staff, especially given UNRWA’s immediate action in terminating their contracts and calling for a transparent independent investigation.”

The Palestinian foreign ministry condemned what it labeled as an Israeli effort to undermine UNRWA, while Hamas criticized the dismissal of employees based on information it deemed biased.

Established to support refugees from the 1948 war at Israel’s founding, UNRWA offers educational, health, and aid services to Palestinians in Gaza, the West Bank, Jordan, Syria, and Lebanon, assisting around two-thirds of Gaza’s 2.3 million residents. The agency has been crucial in providing assistance during the ongoing conflict that escalated after the October attacks.

In his announcement regarding the investigation, Lazzarini did not specify the number or details of the employees allegedly linked to the attacks but emphasized that any employee involved in acts of terror would face accountability, including potential criminal prosecution. Amid ongoing Israeli bombardments, UNRWA has repeatedly warned that its ability to provide humanitarian support in Gaza is nearing collapse.

Hussein al-Sheikh, leader of the Palestine Liberation Organization (PLO), highlighted the significant political and relief challenges posed by the funding cuts and urged the countries involved to reconsider their decisions.

The German Foreign Ministry, a key donor to UNRWA, expressed concern over the allegations against the agency’s staff and welcomed the investigation, stating the expectation that all forms of hatred and violence would be entirely unacceptable within UNRWA.