In early 2024, Israel made allegations that 12 employees of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) were involved in the 7th October Hamas terror attacks. Following the allegations, 16 nations, including the top contributors suspended funding and demanded investigations. In response, UNRWA immediately terminated the contracts of the alleged employees and the UN Secretary-General António Guterres mandated the Office of Internal Oversight Services (OIOS) to begin investigations. Guterres also mandated an Independent Review Group (IRG) led by former French Minister of Foreign Affairs, Catherine Colonna to submit a Report on UNRWA’s ability to uphold neutrality principles.
The IRG made its report public on 22nd April and remarked that Israel has yet to provide evidence and that the UNRWA has a robust system to uphold neutrality. The IRG, however, gave 50 recommendations to improve areas where it was found lacking. Currently, apart from the United States (US), the United Kingdom (UK), Austria, and Switzerland, all the nations that had earlier announced suspension have resumed funding. In this context, the article seeks to examine the current state of ongoing investigations, the responses from key players, implications for India and larger implications in general for the UN and stability in the region.
Background on UNRWA
The UNRWA was established in 1949 by the UN General Assembly Resolution 302 (IV). It is mandated to carry out direct relief works programs for the Palestinian refugees till 2026. The UNRWA’s services are utilised by 5.9 million Palestinian refugees. It operates in Jordan, Lebanon, Syria, the Gaza Strip and the West Bank and employs more than 28,000 local Palestinian staff members. The UN body works on delivering essential services in education, health, protection, relief and social services, microfinance and camp improvement. In 2020, UN Under-Secretary-General Philippe Lazzarini was appointed as the Commissioner-General of UNRWA. Since the beginning of the Israeli operations in Gaza, 182 UNRWA workers have lost their lives.
UNRWA receives voluntary contributions mostly from UN member states. It also receives funding through the UN budget, European Union, regional governments and private donors. In 2023, UNRWA mobilised a total pledged amount of USD 1.46 billion. The US, Germany, European Union (EU) and France were the largest donors, contributing 56 per cent of the overall budget.

Data Source: Table made by author using data from UNRWA site
State of Investigations
The OIOS is an independent body within the UN tasked with conducting administrative investigations over allegations of misconduct in the workplace. This also involves matters of alleged breach of UN staff regulations, rules and codes of conduct. On 26th April, the OIOS shared information on the status of the investigation. A total of 19 UNRWA staff members are under investigation. 12 were informed about in January, five in March and two in April by Israeli authorities. Of the initial 12, one case was closed as Israel submitted no evidence, three cases have been suspended due to lack of substantial evidence, and eight are currently under investigation. Out of the remaining seven cases which were subsequently brought later, one case has been suspended, citing pending receipt of additional evidence, and the remaining six are under investigation.
The IRG in its report, remarked that the UNRWA operates under extraordinary circumstances in a region marred by frequent conflicts, lack of political progress and presence of armed groups. In the absence of a political solution between Israel and Palestinians, UNRWA remains a pivotal lifeline in rendering humanitarian services, particularly in health and education. Its neutrality challenges differ from those of other humanitarian groups; however, UNRWA has a robust mechanism in place and a developed approach compared to other groups. Nevertheless, IRG noticed that certain issues persisted in core areas like engagement with donors, governance, management and internal oversight structures. The IRG report provided 50 recommendations for UNRWA to strengthen its neutrality principles, the important ones being: to establish a Neutrality Investigations Unit, to update its Code of Ethics, set up new ways to screen applicants at the recruitment stage, explore ways to ensure third-party monitoring of sensitive projects and to build more transparency in the overall process for donor satisfaction.
Responses from Key Stakeholders
Israel has rejected the IRG’s findings and remarked the recommendations as “cosmetic fixes”. The Israeli Foreign Minister responding to the IRG report has remarked that the Hamas infiltration is so deep that “it is impossible to say where UNRWA ends and Hamas begins”. In the past, Israel has often complained about the impartial nature of the UNRWA’s functioning. It has blamed UNRWA for subjectively portraying Jews in bad light and glorifying terrorists in the textbooks used by schools which are run by UNRWA. Prime Minister Netanyahu has called for shutting down the UN body, accusing it of being “infested by terror elements and unjustly seeks to perpetrate Palestinian refugee crisis”. Israel wants alternative bodies like the UN World Food Programme (WFP) or private bodies to replace UNRWA. Apart from the 12 accused, Israel has also alleged UNRWA of employing 450 terror operatives in Gaza and aiding Hamas by allowing them to hide under a large subterranean data centre directly under the UNRWA Gaza headquarters.
UNRWA has accused Israel of intentionally targeting its installations since the beginning of its ground offensives against Gaza. It has repeatedly warned of the drastic implications of stopping funds, as millions of Palestinians are dependent upon its services. Director General Philippe Lazzarini has also warned that the UN body is “at risk of death, at risk of dismantlement” due to halting of funds and currently is “the only agency that delivers public services to Palestinian refugees.” Presently, amounts totalling up to USD 267 million remain suspended, most of which comes from the US.
The US is the biggest donor, contributing nearly 30 per cent of the total UNRWA budget. Responding to the allegations, Congress has blocked further financial support till 2025. The block includes USD 300,000 in unobligated FY-2024 funds and over USD 2.5 million in obligated but unpaid balances for FY-2023. The US officials have remarked that the block will be lifted upon the conclusion of investigations. In the previous Trump administration, the US had announced its first cut-off of contributions in 2018, citing UNRWA’s operations as “irredeemably flawed.” However, the Biden Administration resumed funding in April 2021.
Germany, the second largest donor, resumed funding after the IRG made its report public. Berlin has urged UNRWA to incorporate the recommendations made in the report, including strengthening its internal audit function and improving external oversight of project management. Meanwhile, the EU has called for the resumption of UNRWA funding, and other Western nations have echoed similar statements.
India’s Position
India is considered as a key stakeholder in the region, owing to its close ties with Israel and the Palestinian people. In 2018, under PM Narendra Modi, India increased its commitment to UNRWA by increasing its pledged contributions from USD 1.25 million to USD 5 million annually. In January 2024, India expressed serious concern about the terror allegations made on UNRWA and reiterated its policy of “zero tolerance towards terrorism”. However, India did not make any announcement regarding the suspension of funding.
In March, during a special meeting of the UN General Assembly regarding the funding of UNRWA, India’s Permanent Representative to the UN, Ruchira Kambhoj, remarked that India has provided assistance to the people of Palestine and will continue to do so. She further stated that India is “positively considering specific requests from the UNRWA for assistance in kind. We urge utmost diligence in the utilisation of these assistance”. Regarding the allegations, Kambhoj remarked that India is waiting for the report on the time-bound investigations as announced by the Secretary General.
Implications and Conclusion
The terror allegations, if proven to be true, would be disastrous for the credibility of the UNRWA and also will also affect the legitimacy of the UN at large. However, it should also be noted that UNRWA is operating under extremely difficult conditions, and cases of neutrality infringement are bound to occur. UNRWA is currently the only humanitarian agency capable of delivering essential services in the region, owing to its operation history since 1950. It is also one of the largest UN bodies, with extensive infrastructure, staff support, and budget to implement its mandates.
However, the agency is currently at risk of being inoperable with the halting of the funds. Given the circumstances, it is not feasible for any other body to take over the task from UNRWA. There is a risk of adversarial actors like Islamic fundamentalists stepping in to fill the vacuum of providing essential services and setting up their agenda. Further, failure to provide the aid will lead to a humanitarian crisis and increasing destabilisation in the region. Hence, it is imperative that the OIOS concludes its investigations and that corrective measures be implemented soon.