THE UNITED NATIONS Relief and Works Agency for Palestinian Refugees (UNRWA) has been the subject of a damaging controversy since the agency announced on Saturday that it had suspended 12 staff members in Gaza for allegedly taking part in the Hamas-led attacks against Israel on 7 October last year. 

The scandal was brought to light after an Israeli intelligence dossier claimed the 12 UNRWA staff members were involved in the attacks that left more than 1,000 people dead.

The same dossier also alleged that 10% of UNRWA’s 13,000 workers had connections to Hamas, the militant group in power in Gaza, a claim that remains unverified. 

The head of UNRWA, Phillipe Lazzarini, said he had immediately fired the employees in question and launched an investigation into the allegations.

Despite this, 12 nations have now suspended funding to the organisation that is seen as a lifeline for Gaza’s population of over 2 million people, most of whom are staying in or near UNRWA shelters.

UNRWA lifesaving assistance is about to end following countries decisions to cut their funding to the Agency.

Our humanitarian operation, on which 2 million people depend as a lifeline in Gaza, is collapsing. I am shocked such decisions are taken based on alleged behavior of a…

— Philippe Lazzarini (@UNLazzarini) January 27, 2024

What is UNRWA and how is it funded?

UNRWA was founded in 1949 following the Nakba (Catastrophe), when hundreds of thousands of Palestinians were forced from their homes during the Arab-Israeli war that led to the founding of the state of Israel. 

Many of those refugees make up the population of the Gaza Strip, living in refugee camps supported by the aid agency. There are also Palestinian refugee camps in the West Bank and neighbouring countries. 

UNRWA’s remit involves providing education, healthcare, relief and social services, camp infrastructure and improvement, microfinance and emergency assistance. 

It is funded almost entirely by voluntary contributions from UN member states but also receives some funding through the UN budget and from private donors. 

The biggest donor by far has been the United States, followed by Germany and the European Union. 

What are UNRWA workers accused of?

In the Israeli intelligence dossier, the 12 UNRWA workers were said to have taken part in the attacks on Israel on 7 October last year. 

Among the 12 workers were nine teachers and a social worker, according to Israeli intelligence. Seven of them are accused of entering Israel on 7 October as the attacks took place. One is accused of taking part in a kidnapping and three others are said to have been involved in the attacks. 

Ten of those named in the dossier are alleged to have ties with Hamas and another with the Islamist militant group Palestinian Islamic Jihad. The twelfth person is yet to be identified, according to the UN. Two of the 12 have been killed, the dossier said. 

Israel has a long-held animosity towards UNRWA and towards United Nations institutions more generally. 

Israeli foreign minister Israel Katz called last weekend for Lazzarini, the UNWRA chief, to resign in light of the allegations.

What countries are pulling funding – and what are the consequences?

The first state to announce the suspension of its financial support was the agency’s biggest donor, the United States. 

The UK, Germany, Italy, Canada, the Netherlands, Finland, Switzerland, Estonia, Romania, Austria and Japan have since followed suit. 

The EU has said it will review its funding of the agency; its next round of funding is due at the end of February.

Ireland and Norway have been the countries at the forefront of defending UNRWA since the allegations came to light. 

Tánaiste and Minister for Foreign Affairs Micheál Martin said on Saturday that he had “full confidence”in Lazzarini’s decision to suspend the accused staff members and that Ireland has no plans to cut funding to UNRWA.  

Norway’s minister for foreign affairs Espen Barth Eide said that while the allegations were “deeply concerning”, Norway would not be suspending donations to the agency. 

He urged donors to reflect on the consequences of cutting funding at a time of “extreme humanitarian distress”.

“We should not collectively punish millions of people,” he said. 

Full confidence in @UNLazzarini's decision to immediately suspend @UNRWA staff suspected of participation in the heinous attacks of October 7, to investigate thoroughly and show zero tolerance on terror.

🇮🇪 has no plans to suspend funding for UNRWA’s vital Gaza work. (1/2)

— Micheál Martin (@MichealMartinTD) January 27, 2024

The cuts in funding come at the worst possible time for the people of Gaza, almost 2 million of whom have been displaced by Israel’s relentless bombardment and invasion.

Aid agencies including Doctor’s Without Borders have said in recent weeks that the Gaza health system has “virtually collapsed” as most of the territory’s hospitals are no longer functioning. Those that remain open are only operating at limited capacity. 

In addition to the dangers posed by Israeli airstrikes, shelling and exchanges of fire with militants in Gaza, starvation and disease are now emerging as major threats to the civilian population, who are mostly staying in UNRWA shelters. 

Key UN bodies, including the World Health Organization, the UN High Commissioner for Refugees and the UN Children’s Fund (UNICEF), have signed a joint statement warning of the “catastrophic consequences” that cutting of funding will bring.

“No other entity has the capacity to deliver the scale and breadth of assistance that 2.2 million people in Gaza urgently need. We appeal for these decisions to be reconsidered,” the UN agencies said.