UN agency for Palestinian refugees slams 'shocking' suspension of funding

The UN agency for Palestinian refugees slammed the "shocking" suspension of funding by several donor countries following Israeli accusations that several UNRWA employees were involved in Hamas's October 7 attack.

"It is shocking to see a suspension of funds to the agency in reaction to allegations against a small group of staff," UNRWA chief Philippe Lazzarini said in a statement on Saturday, adding that the "lives of people in Gaza depend on this support".

Israel vowed to stop the UN agency at the heart of humanitarian efforts in Gaza from operating after the war.

UNRWA said on Friday it had fired several employees over Israel's accusations, promising a thorough investigation into the claims, which were not specified.

Donors including Germany, Britain, Italy, Australia and Finland have followed the lead of the United States, which said it had suspended additional funding to the agency over the accusations.

"In Gaza's rebuilding, UNRWA must be replaced with agencies dedicated to genuine peace and development," Israeli Foreign Minister Israel Katz said in a statement, urging more donors to suspend funding.

Hamas condemns Israeli threats

Hamas on Saturday slammed Israeli "threats" against UNRWA, urging the United Nations and other international organisations not to "cave in to the threats and blackmail".

Relations between Israel and UNRWA, which have been strained for years, deteriorated further in recent days, with the UN agency condemning tank shelling it said had hit a shelter for displaced people in Gaza's main southern city of Khan Yunis.

The agency said tens of thousands of displaced people had been registered at the shelter and Wednesday's tank shelling killed 13 people.

Before the Israeli war on Gaza, UNRWA already struggled to meet funding requirements.

The agency's chronic budget shortfalls worsened dramatically in 2018 when former US president Donald Trump cut support to the agency.

But US President Joe Biden's administration has restored support, providing $340 million in 2022, making it the agency's largest bilateral donor.

The US State Department said Friday it had "temporarily paused additional funding" to the agency while it reviewed the claims as well as the UN's plan to address concerns.