Israeli lawsuit accuses UN agency of aiding Hamas through dollar payments

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NEW YORK. Israelis who were taken hostage or lost loved ones during Hamas’ October 7 attack have filed a lawsuit against the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). The suit claims that UNRWA has indirectly financed Hamas by paying its Gaza-based staff in U.S. dollars, which are allegedly funneled through money-changers who provide a cut to the militant group.

The lawsuit, filed Monday in a U.S. federal court in New York, marks a significant challenge to UNRWA, which has been a crucial provider of food, water, and shelter to civilians during the ongoing Israel-Hamas conflict. The Israeli government has long criticized the agency, and the scrutiny has intensified during the eight-month-long war. UNRWA has been compelled to defend itself amidst a worsening humanitarian crisis in Gaza.

The lawsuit states, “UNRWA’s staff, facilities, and ability to truck U.S. dollars into Gaza formed a potent pillar of Hamas’ plan to undertake the Oct. 7 attack,” accusing the U.N. agency of systematically aiding Hamas.

UNRWA Commissioner-General Philippe Lazzarini responded to the allegations, stating that he learned about the lawsuit through the media and considered it an additional pressure tactic against the agency. “I don’t know what the status of this lawsuit is all about, but for the time being, I see this as an additional way to put pressure on the agency,” Lazzarini said at a press briefing in Geneva.

The agency has denied any deliberate support for Hamas or other militant groups. UNRWA spokesperson Juliette Touma explained that staffers in Gaza requested payment in U.S. dollars because the region lacks an official national currency. “Gaza does not have an official national currency,” Touma said, emphasizing that the agency and its officials are immune from lawsuits.

The plaintiffs, including survivors of the October 7 attack, victims’ relatives, and rescued captives, allege that the dollar payments are converted to Israeli shekels by local money-changers, who are claimed to be controlled by Hamas. The complaint asserts that Hamas extracts a fee from these transactions, ensuring a portion of UNRWA’s payroll benefits the militant group.

“Hamas’ ability to carry out the Oct. 7 attack would have been significantly and possibly fatally weakened without that UNRWA-provided cash,” the lawsuit claims. It references a 2018 UNRWA-commissioned report that noted the risks of misappropriation and diversion of aid.

The conflict has seen severe casualties, with around 1,200 people, mostly civilians, killed in the Hamas attack, and more than 37,000 Palestinians killed in the subsequent war, according to the Gaza Health Ministry. The lawsuit underscores longstanding complaints from the Israeli government about UNRWA, including accusations that the agency employs Hamas operatives and uses biased educational materials in its schools.

Since the onset of the conflict, over 1.7 million people have sought refuge in UNRWA facilities, with at least 500 displaced individuals killed in attacks on these sites. The agency has lost nearly 200 staff members.

The allegations have led to the suspension of hundreds of millions of dollars in contributions to UNRWA from the U.S. and other countries, though most have resumed their funding. Lazzarini indicated that new donors have also come forward, but the agency still faces a significant financial shortfall.

Two U.N. officials warned on Tuesday that Gaza aid operations could be suspended unless protections for humanitarian workers improve. Israel has accused UNRWA of allowing Hamas to exploit its resources, a claim that has added to the international scrutiny of the agency’s operations.

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Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.