UNRWA says it may be forced to shut down by the end of the month as countries pull support

Palestinians try to extinguish a fire at a building of an UNRWA vocational training center which displaced people use as a shelter, after being targeted by Israeli tank shill in Khan Younis, southern Gaza Strip, Wednesday, Jan. 24, 2024. (AP Photo/Ramez Habboub)

The aid group working to help the 2.3 million Palestinians facing what the UN has deemed a humanitarian crisis in Gaza says it may "be forced" to shut down operations by the end of February due to numerous countries pulling their support.

A total of 16 countries, including Canada, have pulled funding from the United Nations Relief and Works Agency (UNRWA) in the wake of allegations that 12 staff members may have played a role in the Oct. 7 Hamas attack in Israel that killed 1,200 and saw roughly 250 people taken hostage.

“If funding remains suspended, we will most likely be forced to shut down our operations by end of February not only in Gaza but also across the region,” UNRWA Commissioner-General Philippe Lazzarini said in a statement Thursday.

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The organization, which has more than 13,000 staff members, approximately 3,000 of which are actively working in Gaza, says it has been the "backbone" of the humanitarian effort in Gaza during Israel’s brutal military campaign in the Gaza Strip. More than 26,000 people have been killed in Gaza over the past four months, according to the Hamas-run Health Ministry.

Some human rights experts have warned that stripping UNRWA of funding during a humanitarian crisis could have dire consequences for the civilians in Gaza who rely on its aid.

On Jan. 26, Lazzarini announced that the organization had fired several employees and launched an investigation after receiving information from Israeli authorities alleging that they played a role in the Oct. 7 attack, stating that “anyone who betrays the fundamental values of the United Nations also betrays those whom we serve in Gaza, across the region and elsewhere around the world.”

In the wake of this probe, the U.S. suspended funding to the UNRWA and Canada ordered a temporary pause on “any additional funding” for the UN aid group. Over the next few days, more countries pulled their funding, including the U.K., Italy, Australia and Finland, among others.

Canada’s International Development Minister Ahmed Hussen said on Jan. 26 that Canada would channel humanitarian aid for Palestinians in Gaza through other agencies until the investigation is complete.

“Canada is taking these reports extremely seriously and is engaging closely with UNRWA and other donors on this issue," he said in a statement.

Canada announced another $40 million in aid to other organizations working in Gaza on Tuesday, including the World Food Program, UNICEF and the World Health Organization.

• Read more: Canada sends $40M for Palestinians in Gaza, as Liberal MP decries UNRWA freeze

Still, some worry that pulling funding from the UN group specifically leaves Palestinian civilians at risk.

More than 1.7 million Palestinians have been displaced by the fighting in Gaza, according to an estimate from the UN. Civilians fleeing south due to Israeli evacuation orders have found shelter mostly in UNRWA-run schools, shelters and refugee camps, the organization said.

Pulling funds from this organization, which has been operating in Gaza for nearly 75 years and runs the vast majority of the humanitarian infrastructure in the region, sharply increases the risk of famine as Palestinians in Gaza struggle to find food, water and shelter amid constant aerial bombardment, an expert said.

"Without these funds, famine might be inevitable in the next few weeks," Michael Fakhri, UN special rapporteur on the right to food, told CTV News Channel on Monday.

"I'm not sure why the alleged actions of 12 employees has led to such a massive retaliation against all Gazans and Palestinian refugees. The response, in the midst of a humanitarian crisis, has been to defund the most effective and primary source of aid. That makes no sense."

Other experts, including a former ambassador to the UN and a Canadian foreign affairs critic, have expressed similar concerns since the federal government's decision was announced.

• Read more: What experts think of Canada suspending funding to UNRWA over Oct. 7 allegations

The UNRWA provides services for Palestinian refugees not just in Gaza, but also in the West Bank, Jordan, Lebanon and Syria.

“It’s difficult to imagine that Gazans will survive this crisis without UNRWA,” Thomas White, director of UNRWA affairs in Gaza and UN deputy humanitarian co-ordinator, said in the Thursday statement.

Israel has called for more donors to suspend funding, accusing UNRWA of having ties to Islamist militants in Gaza and stating that it should be should be replaced with other agencies.

Amnesty International has urged states to resume funding UNRWA, stating that while allegations against individual staff must be investigated, “the alleged actions of a few individuals must not be used as a pretext for cutting off life-saving assistance in what could amount to collective punishment.”

The human rights organization also pointed out that this decision comes in the wake of the International Court of Justice’s ruling that Israel needs to implement measures to prevent the genocide of the Palestinian people in Gaza, which included a requirement to ensure humanitarian aid is delivered.

“It is disgraceful that instead of heeding the ICJ’s ruling, and the court’s finding that the catastrophic humanitarian situation in the Gaza Strip is at serious risk of deteriorating further, key states, including the United States, Canada, the UK, Germany, Australia, and France have cut off funding to the main provider of aid for civilians in Gaza,” Agnes Callamard, Amnesty International’s Secretary General, said in a statement Monday.

Many countries, including the U.K., U.S. and Canada, have stated that their suspension of funds for UNRWA is temporary, pending the results of the investigation into the specific staff members who stand accused.

The concern of critics is that even a temporary pause could have devastating impacts on the Palestinian population, and that other agencies may not have the capability to pick up the slack.

“Palestinian civilians in Gaza, including children, people with disabilities, and those who are pregnant, rely heavily on UNRWA services and have nothing to do with the allegations against individual employees,” Akshaya Kumar, crisis advocacy director at Human Rights Watch, said in a statement Wednesday decrying the funding pause.