UPDATED: EU reviews funding for UN Palestinian agency after Israeli allegations

Jan 29 (Reuters) – The European Commission said on Monday it would review whether it could continue to fund the U.N. Palestinian refugee agency (UNRWA) in light of the allegations that staff members were involved in the Oct. 7 attacks by Hamas in southern Israel.

Several countries, including EU members Germany, Italy, the Netherlands and Finland, paused funding for UNRWA after allegations by Israel that 12 of its 13,000 staff in Gaza were involved.

U.N. officials urged them to reconsider a pause in funding, pledging that any staff found involved in the Hamas attack would be punished and warning that aid for some two million people in Gaza was at stake.

“The European Commission will determine upcoming funding decisions for UNRWA in light of the very serious allegations,” the commission said in a statement.

“The Commission will review the matter in light of the outcome of the investigation announced by the UN and the actions it will take.”

No additional funding for the organisation is currently foreseen until the end of February, the commission said.

The commission will try to balance both the seriousness of the allegations and the dire need for humanitarian aid among Palestinians in the Gaza Strip and the West Bank, a spokesman said.

“On the one hand we have these extremely serious allegations, and it’s obvious that these need to be investigated seriously and without delay,” spokesman Eric Mamer told reporters.

“Secondly, UNRWA is a partner for humanitarian aid to Palestinians in Gaza and the West Bank. We recognise fully that aid to Palestinians needs to continue.”

UN to punish staffers involved in ‘terror’

United Nations Secretary-General Antonio Guterres vowed on Sunday to hold to account “any U.N. employee involved in acts of terror” after allegations that some refugee agency staffers were involved in the Oct. 7 Hamas attacks on Israel.

But Guterres implored governments to continue supporting the U.N. refugee agency for Palestinians (UNRWA) after nine countries paused funding.

“Any U.N. employee involved in acts of terror will be held accountable, including through criminal prosecution,” the U.N. chief said in a statement. “The Secretariat is ready to cooperate with a competent authority able to prosecute the individuals in line with the Secretariat’s normal procedures for such cooperation.”

At the same time, he said, “The tens of thousands of men and women who work for UNRWA, many in some of the most dangerous situations for humanitarian workers, should not be penalized. The dire needs of the desperate populations they serve must be met.”

In his first direct comments on the issue, the U.N. chief gave details about the UNRWA staffers implicated in the “abhorrent alleged acts.” Of the 12 implicated, he said, nine had been terminated, one was confirmed dead and the identities of the other two were being clarified.

More countries pause funds for UN Palestinian agency

Six European countries paused funding for the U.N. refugee agency for Palestinians (UNRWA) on Saturday, following allegations that some of its staff were involved in the Oct. 7 Hamas attacks on Israel.

Britain, Germany, Italy, the Netherlands, Switzerland and Finland on Saturday joined the United States, Australia and Canada in pausing funding to the aid agency, a critical source of support for people in Gaza, after the allegations by Israel.

“Palestinians in Gaza did not need this additional collective punishment,” Philippe Lazzarini, UNRWA commissioner-general, said on X. “This stains all of us.”

The agency said on Friday it had opened an investigation into several employees and severed ties with those people.

Encouraging more donor suspensions, Israeli Foreign Minister Israel Katz said UNRWA should be replaced once fighting in the enclave dies down and accused it of ties to Islamist militants in Gaza.

“In Gaza’s rebuilding, @UNRWA must be replaced with agencies dedicated to genuine peace and development,” he added on X.

Deputy U.N. spokesperson Farhan Haq, asked about Katz’s remarks, said: “We are not responding to rhetoric. UNRWA overall had had a strong record, which we have repeatedly underscored.”

Lazzarini said the decision by the nine countries threatened its humanitarian work across the region, especially in Gaza.

“It is shocking to see a suspension of funds to the Agency in reaction to allegations against a small group of staff, especially given the immediate action that UNRWA took by terminating their contracts and asking for a transparent independent investigation,” he said in a statement.

The Palestinian foreign ministry criticised what it described as an Israeli campaign against UNRWA, and Hamas condemned the termination of employee contracts “based on information derived from the Zionist enemy”.

AGENCY PLAYS BIG ROLE IN GAZA AID

UNRWA was set up to help refugees of the 1948 war at Israel’s founding and provides education, health and aid services to Palestinians in Gaza, the West Bank, Jordan, Syria, and Lebanon. It helps about two thirds of Gaza’s 2.3 million population and has played a pivotal aid role during the war that Israel launched to eliminate Hamas after the Oct. 7 attacks.

Announcing the investigation, Lazzarini said on Friday that he had decided to terminate the contracts of some staff members to protect the agency’s ability to deliver humanitarian assistance.

Lazzarini did not disclose the number of employees allegedly involved in the attacks, nor the nature of their alleged involvement. He said, however, that “any UNRWA employee who was involved in acts of terror” would be held accountable, including through criminal prosecution.

During weeks of Israeli bombardment of the Palestinian enclave, UNRWA has repeatedly said its capacity to render humanitarian assistance to people in Gaza is on the verge of collapse.

Hussein al-Sheikh, head of the Palestinians’ umbrella political body the Palestine Liberation Organization (PLO), said cutting support to the agency brought major political and relief risks.

“We call on countries that announced the cessation of their support for UNRWA to immediately reverse their decision,” he said on X.

The Foreign Ministry in Germany, a major donor to UNRWA, welcomed UNRWA’s investigation, saying it was deeply concerned about the allegations raised against agency employees.

“We expect Lazzarini to make it clear within UNRWA’s workforce that all forms of hatred and violence are totally unacceptable and will not be tolerated,” it said on X.

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