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Hamas Influences UK Funded Gaza Cash Program
By: NGO-Monitor.org
Since taking control of Gaza in 2007, Hamas has employed a number of methods to divert international aid. By exploiting monies and material intended for humanitarian purposes, the terrorist organization expanded its military infrastructure, paid salaries, and cemented its rule.
More disturbingly, this aid diversion was central in Hamas’ preparations for the October 7th massacre, including the construction of tunnels and other military installations, and stockpiling supplies and resources. After thousands of terrorists invaded Israel and committed mass atrocities, Hamas continued to commandeer aid, creating and taking advantage of a black market.
As part of this organized scheme, Hamas gave lists of aid beneficiaries to UN agencies and NGOs implementing cash-assistance and building projects.
UK government documents reveal that Foreign Commonwealth and Development Office (FCDO) officials were aware of Hamas involvement and the significant diversion risks in Gaza cash-assistance programs. Yet, the FCDO pressed ahead providing millions of pounds in funding to such a mechanism. The project was implemented by UNICEF, in coordination with the Hamas-controlled Ministry of Social Development (MoSD). It appears, based on UK and UN documentation, that this support is ongoing, even after Hamas’ October 7 massacre and war in Gaza.
British diplomats, aware that Hamas was likely dictating the disbursement of UK taxpayer funds and also that NGOs linked to other terrorist groups would receive them, identified this as merely a “reputational” risk that might reflect poorly on the UK, not a national-security, legal, or terror-financing concern. As reflected in these documents, British officials appear more concerned about the UK’s image than about the dangerous implications of lax counter-terror financing policy.
Separately, the UK also funds the Norwegian Refugee Council (NRC), a leading distributor of MoSD-coordinated cash assistance.
Additionally, the documents show that the UK knowingly funded UN mechanisms that partner with Israeli-designated terrorist entities.
The UK government continues to provide approximately £100 million in funding to UN and NGO activities in the West Bank and Gaza, after the Hamas-orchestrated October 7th massacre, with inadequate oversight or transparency.
UK Cash Assistance Programs
UNICEF
A British Consulate-General in Jerusalem (BCGJ) document dated November 2022, outlines a plan for “UK Humanitarian Support in the Occupied Palestinian Territories (FY 2022-2026).” One element is funding for UNICEF-administered cash assistance in Gaza.
The document claims that the “program aims to improve the resilience of households to mitigate the consequences of the protracted protection crisis in the OPTs; save lives during rapid onset emergencies, for example a flare up in violence or health crisis; and prevent a further deterioration in the humanitarian situation until a more durable political solution is reached.”
Among the projects outlined is the distribution of “multi-purpose cash” assistance in Gaza. The document explains that “The cash assistance component will be implemented in coordination with the Ministry of Social Development MoSD.” As highlighted by the document, “The MoSD in Gaza is affiliated with the de facto authorities and thus UK Aid can be linked directly or indirectly with supporting the de factor [sic] authority (Hamas) in Gaza which is part of a proscribed group” (emphasis added).
(For information on MoSD’s ties to Hamas, see Appendix I.)
In the corresponding risk matrix, the document identifies the links to Hamas as a “reputational” risk.
The document further details that the cash assistance will be distributed by UNICEF, in coordination with the MoSD, noting that “In 2021, BCGJ [British Consulate-General Jerusalem] supported UNICEF’s shock responsive cash programme which was implemented in line with the National Cash Transfer Programme of the Ministry of Social Development (MoSD).”
The document continues, “UNICEF plans to work closely with the Ministry of Social Development MoSD and humanitarian cash actors, including through coordination platforms.”
In March 2024, UNICEF published an update regarding its cash-assistance program in Gaza, in which it claims to have supported over 540,000 Gazans since the Hamas-orchestrated October 7th massacre. Crucially, UNICEF boasts that it “maintained and strengthened the partnership with the Ministry of Social Development (MoSD), which helped ensure access to the social registry and resulted in targeting the most vulnerable families.”
UNICEF also acknowledges that “This humanitarian cash transfer program in the Gaza Strip has been made possible with generous support from,” inter alia, “the UK Foreign, Commonwealth & Development Office (FCDO).”1
An April 2024 FCDO document outlines continued UK support for UNICEF-administered cash assistance in Gaza: “We will continue to support UNICEF’s work in Gaza which is focused on the delivery of child-sensitive social protection and cash assistance.”
According to the UN Financial Tracking System (FTS), in 2024, the UK provided UNICEF with approximately $23.1 million for West Bank and Gaza operations (approximately $4.8 million in 2023).
Norwegian Refugee Council (NRC)
The UK has been one of the primary funders of Norwegian Refugee Council (NRC) operations in the West Bank and Gaza (see below), another key implementer of MoSD-coordinated cash assistance.
FCDO is largely non-transparent regarding its funding to the region (see below), particularly regarding its relationship with NRC, making it difficult to ascertain the full extent of NRC’s use of UK taxpayer funds.
In addition, the UK frameworks do not vet NRC’s local implementing partners, instead relying on the NGO to do so itself. According to the testimony of an FCDO official during freedom of information proceedings brought by NGO Monitor regarding UK funding to the NRC, “the FCDO conducts its own due diligence process for its main project partners, and then relies on those partners to do their own due diligence for any subcontractors.” (On file with NGO Monitor)
According to NRC’s April 2024 “Gaza Crisis Response Plan”
Building upon its extensive experience with cash-based interventions in Palestine, the Norwegian Refugee Council (NRC) is providing large scale MPCA [Multi-purpose cash assistance] to Palestinians in Gaza through a cash plus approach. NRC has been providing cash assistance in Palestine since 2014, notably as lead of the Gaza Protection Consortium (GPC) and in close collaboration with the Cash Working Group (CWG). From October 2023 to April 2024, NRC has provided a first round of cash assistance to 55,968 individuals across the five governorates of the Gaza Strip. NRC is committed to provide three additional rounds of multipurpose cash assistance to this same caseload through the end of the year, for which more than 11M USD are being fundraised within this Response Plan.
NRC acknowledges its coordination with MoSD in administering cash assistance: “NRC fosters strong partnerships with national and local authorities, particularly with the MoSD in Gaza and the West Bank, ensuring targeted assistance through the Gaza Protection Consortium’s cash programming.”
UK Funding to NRC
The UK government directs funds to the NRC through Conflict, Stability, and Security Fund (CSSF), but this funding is not transparent. NGO Monitor has been able to confirm this based on the UK government responses in the course of Freedom of Information proceedings with FCDO as noted above.
Additionally, a response to a March 2024 Parliamentary question acknowledged that “The UK currently provides funding to the Norwegian Refugee Council (NRC) for projects in the Occupied Palestinian Territories including in the West Bank and East Jerusalem through the Conflict, Stability and Security Fund (CSSF).”
According to the response NRC received the following funding via CSSF:
FY 22-23 – £3.07 million
FY 23-24 – £ 3.68 million
FY 24-25 – £ 2.7 million
UK Funding to PFLP-linked NGOs
The 2022 BCGJ document displays a laissez-faire approach to PFLP-linked organizations. It notes that “The Israeli Minister of Defense designated six Palestinian human rights and humanitarian organizations as ‘terrorist organizations,’” and acknowledges that “If OCHA’s HF [UN Office for the Coordination of Humanitarian Affairs Humanitarian Fund] funds one of the ‘designated organizations’, then it could entail a major reputational risk for the UK. The main risk is around our inability to identify downstream partners until funds are disbursed.”
Instead of committing to combating terror financing and aid diversion, and demanding improvements so “downstream partners” would be known earlier in the approval process, the BCGJ identifies the risk as a reputational one that can be managed as “Once UK funds are transferred to the ‘pooled’ HF [Humanitarian Fund], it would be difficult to attribute direct UK contribution to funded projects.”
Additional UK Funding Since October 7th
From October 2023-April 2024, the United Kingdom granted $53.53 million to UN-OCHA’s “OPT Flash Appeal” meant to “address[] the most urgent needs of 1,260,000 people in the Gaza Strip (Gaza) and the occupied West Bank, including East Jerusalem.”
In 2024, the UK provided the OCHA Humanitarian Fund with approximately $13.6 million for West Bank and Gaza activities.
Ties to terror-linked NGOs
In the West Bank and Gaza, the OCHA oPt Humanitarian Fund has provided grants to a number of terror-linked NGOs. These include Palestinian Centre for Human Rights (PCHR), Union of Agricultural Work Committees (UAWC), and Health Work Committees (HWC).
Inconsistent transparency from OCHA makes it difficult to determine the extent of this phenomenon or to comprehensively identify all relevant examples.
UAWC and HWC ties to terror
UAWC and HWC are designated as terror entities by Israel, as a result of their ties to the PFLP. The Israeli Ministry of Defense determined that these NGOs were diverting humanitarian funds from European donors to aid the PFLP. Moreover, officials from both NGOs are currently standing trial for their role in an August 2019 bombing that murdered Israeli 17-year-old Rina Shnerb.
Two UAWC financial officers – Samir Arbid and Abdel Razeq Farraj – were arrested by Israel for their alleged role in the attacks. The PFLP claimed responsibility for the killing and praised Arbid for carrying it out.
Walid Hanatsheh served as HWC’s finance and administration manager at the time of his arrest. He was identified by the Israeli security authorities as a senior PFLP terror operative. In this capacity, he was charged with commanding Arbid. According to an Israeli media report, Hanatsheh also financed the August 23 bombing. The PFLP claimed responsibility for the killing and praised Hanatsheh.
On January 5, 2022, the Netherlands announced the cancellation of a contract with UAWC, citing its ties to the PFLP. A government-commissioned report by an independent investigatory company, confirmed that 34 UAWC employees in 2007-2020 had ties to the PFLP, some holding leadership positions in the terrorist group concurrent to their employment at UAWC.
In February 2024, the German Federal agency BMZ reportedly decided to cease support to six PFLP-linked NGOs – including UAWC.
PCHR ties to terror
Raji Sourani is PCHR’s founder and director. According to a 1995 article in the Washington Report, he served “a three-year sentence [1979-1982] imposed by an Israeli court which convicted him of membership in the illegal Popular Front for the Liberation of Palestine…” He was also denied a US entry visa in 2012.
In February 2014, the PFLP organized a ceremony in Gaza honoring Sourani, featuring a speech by PFLP Politburo member, Rabah Muhana. During the event Sourani stated that “I was in the ranks of the Popular Front… we are proud that once we were members of this organization and we fought in its ranks” (emphasis added).
Tellingly, in May 2023, as Palestinian Islamic Jihad (PIJ) was bombarding Israel with barrages of rockets from Gaza, PCHR published a statement (on file with NGO Monitor) in which it “affirms the right of the Palestinian people to resist the occupation by all available means, including armed struggle…” (emphasis added). After criticism, and under pressure from European government donors, this text was amended.
Despite OCHA’s lack of transparency, NGO Monitor has identified examples of funding to PFLP-linked NGOs via the Humanitarian Fund, including:
In 2023, UAWC was a recipient of a $351,730 grant for a project titled “Emergency support for affected vulnerable farmers through the rehabilitation of their agricultural facilities.”
In 2021, PCHR was a recipient of a $194,255 grant for “Advocacy, monitoring and documentation of HR and IHL violations and related trends in the Gaza Strip and West Bank.”
In 2021, HWC was a recipient of a $305,054 grant for increasing “Access to Essential Health Services for Marginalized Communities in Hebron H2.”
Lack of Vetting
According to documents received by NGO Monitor in the course of a Freedom of Information appeal, the UK does not sufficiently vet local implementing partners. This is especially concerning given the significant number of terror-linked NGOs operating in the region, including in partnership with the UN.
For instance, during NGO Monitor’s 1 February 2024 appeal hearing against the FCDO before the First-tier Tribunal Regulatory Chamber Information Rights, an FCDO official testified under oath that, “The FCDO conducts its own due diligence process for its main project partners, and then relies on those partners to do their own due diligence for any subcontractors based on global criteria. In this particular case, FCDO did a due diligence exercise itself for NRC [Norwegian Refugee Council]. FCDO did not directly vet NRC’s sub-partners, but instead provided them with criteria for assessing those sub-partners” (26 March 2024 First-tier Tribunal General Regulatory Chamber Information Rights decision, paragraph 49; on file with NGO Monitor).
Lack of Transparency
As noted, FCDO lack of transparency regarding funding programs in the West Bank and Gaza is particularly problematic.
According to the FCDO’s DevTracker, which catalogues Ministry spending, since October 2023, FCDO has committed approximately £100 million for “UK Humanitarian Support in the Occupied Palestinian Territories.” Of this funding, approximately £95 million is listed as going to “supplier name redacted.”
Appendix 1: Hamas Control of the MoSD
Hamas has exercised effective control over the MoSD in Gaza for several years. In April 2019, Hamas appointed a politburo member, Ghazi Hamad, to lead the Ministry.
Ghazi Hamad
As of July 2024, Hamas leader and politburo member, Ghazi Hamad, heads the Gaza branch of the MoSd. (ngo-monitor.org)