Explained | All you need to know about the UNRWA fund cutting controversy

UNRWA, the largest humanitarian actor in Gaza suffered massive fund cuts from western nations after Israel accused the agency staff of involvement in the October 7 Hamas attack.

The United Nations agency for Palestinian refugees (UNRWA) has suffered funding cuts from western nations after Israel accused its staff of being involved in the October 7 Hamas attack.

The UN on Saturday said that nine out of 12 employees have been terminated following the allegations and appropriate action will be taken against them.

Additionally, the body expressed shock over the swift fund cutting by several western countries amid humanitarian crisis in Gaza.

“It would be immensely irresponsible to sanction an Agency and an entire community it serves because of allegations of criminal acts against some individuals, especially at a time of war, displacement and political crises in the region,” Philippe Lazzarini, UNRWA chief, said in a statement on Saturday.

Here's all you need to know about the controversy

What is UNRWA?

Established in 1949, UNRWA stands for the United Nations Relief and Works Agency for Palestine Refugees in the Near East. UNRWA's aims is to cater to Palestinians ethnically cleansed from their homes by Jewish militias from areas that currently form part of Israel.

This agency operates in the occupied West Bank, East Jerusalem and Gaza, as well as in Jordan, Lebanon, and Syria (the neighbouring countries where the Palestinian refugees took shelter after their violent expulsion known as the Nakba or catastrophe).

According to the official website, the UN agency supports the relief and human development of Palestinian refugees working in a number of areas.

Who funds UNRWA?

The agency is funded almost entirely by voluntary contributions. In 2022, UNRWA received a major chunk of contribution from the US followed by Germany and the European Union.

The United States, Germany, the EU and Sweden were the largest individual donors in the year in question, contributing 61.4 percent of the agency’s overall funding in total.

Chris Gunness, a former UNRWA spokesman, told Aljazeera, "My message to the Arab world, particularly to the Gulf, is where are you? Because they’re making billions each day on oil revenues. A tiny fraction of those oil revenues would see UNRWA’s financial problems disappear overnight. This unconscionable gap inflicted by these Western countries would be filled very quickly."

"Some of the most desperate people in the Middle East are now facing starvation, they’re facing famine, and the Arab states need to step up to the plate", he added.

What allegations has Israel put against the UNRWA?

The agency on Friday conveyed that Israel has provided information alleging involvement of UNRWA staff in the October 7 Hamas attack.

UNRWA head, Lazzarini said that he immediately terminated the contracts of these staff members and launched an investigation to establish the truth without delay.

On Saturday, Israeli Foreign Minister Katz took to twitter and asked the UNRWA chief Lazzarini to 'resign'.

Former UNRWA spokesman told Aljazeera, "there is a coordinated political attack on the UN’s agency for Palestinian refugees The Israelis have said they cannot win the war on Gaza unless UNRWA is disbanded. So what clearer signal do you want?”

Which nations have cut funding to the UNRWA?

The wave of fund cutting started with the country that contributed the highest in previous years, US.

Followed by US, Canada, Australia, Britain, Germany, Italy, the Netherlands, Switzerland and Finland cut their funds to the agency as well.

French foreign ministry announced that France has not planned a new payment to fund UNRWA in the first quarter of 2024, but would decide when the time comes what action to take in conjunction with the United Nations and its main donors.

What is the significance of UNRWA?

UNRWA is the largest humanitarian actor in Gaza. According to the agency, some 3000 of its core staff continues to work in Gaza despite the war.

UNRWA chief Lazzarini said that two million people out of about 2.3 million population in Gaza depend on the agency’s humanitarian operation.

"I am shocked such decisions are taken based on alleged behavior of a few individuals and as the war continues, needs are deepening & famine looms", he wrote on X.

He added that the agency runs shelters for over one million people and provides food and primary healthcare at the height of the hostilities.