`Absolutely critical' that EU money arrive fast, says UN agency

The United Nations agency aiding Palestinian refugees said Monday that European Union financial support is crucial to the agency, as it appealed to EU officials not to join other international donors in suspending aid over allegations that some of its employees participated in Hamas terrorist attacks.

Philippe Lazzarini, chief of the U.N. Relief and Works Agency, said the civilian population of the Gaza Strip had already paid an “unspeakable” price as war between Israel and Hamas causes a humanitarian crisis that would get dramatically worse if the U.N. agency ran out of money. He warned of a deep sense of panic over the prospect of an Israeli military operation in Rafah, where much of the territory's displaced populace has fled.

Asked before a meeting with EU officials in Brussels how important it was for UNRWA to receive EU's scheduled contribution by the end of the month, Lazzarini responded: “Absolutely critical.”

At least 12 countries, including the United States and Germany, temporarily suspended their funding earlier this month after the Israeli government circulated allegations that about a dozen members of UNRWA's staff played an active role in the Oct. 7 attacks. In total, about $450 million in this year's funding has been withheld from the agency, Lazzarini said.

Israel has imposed a number of restrictions on the agency, he added, including freezing its bank accounts and blocking the shipment of food for more than 1.1 million people. The Israeli parliament is expected to vote this week on banning UNRWA from operating in Jerusalem, where it is headquartered.

And the situation in Rafah, the area along the border with Egypt where more than 1 million people are sheltering, has become more difficult, Lazzarini said. On Monday, UNICEF said 600,000 children were among those in the city. Israeli Prime Minister Benjamin Netanyahu has signaled that ground forces could soon enter Rafah.

“It's becoming more and more difficult to operate in Rafah itself,” Lazzarini said. “So, the coming days will tell us if yes or not we will be able to continue to operate in an extraordinary, extraordinary, challenging environment.”

The EU is one of UNRWA's largest donors and was expected to provide 82 million euros ($88 million) in 2024. But the European Commission, the bloc's executive body, called last month for an independent audit at UNRWA, which would focus on screening and monitoring of “the possible involvement of its staff in terrorist activities.”

It said it would decide on the disbursement of the funds by the end of this month, taking into account the audit and results of a U.N. internal investigation. (A review conducted late last year by the EU concluded that none of its funds, including those sent to UNRWA, went to Hamas.)

Separate from its own internal investigation, the United Nations has commissioned an outside review led by a former French foreign minister.