There is confusion within the New Zealand government and the foreign affairs ministry regarding the decision to suspend funding for the United Nations Relief and Works Agency for Palestine Refugees (UNRWA). Israel has accused some of the agency’s staff of being involved in a Hamas attack on Israel, prompting more than 10 donor countries, including the United States, Germany, Canada, Australia, and the UK, to suspend their funding to UNRWA.
The agency heavily relies on contributions from countries, which constituted 94.9 percent of its total funding in 2022, while the rest came from a limited UN subsidy for administrative purposes. Without external contributions, the agency cannot continue to deliver aid. With many countries suspending their funding, the agency’s future remains uncertain.
On Jan. 29, a senior Ministry of Foreign Affairs and Trade official reassured media outlets that New Zealand’s planned contribution of $1 million (US$613,890) for 2024 was only under assessment prior to payment. However, Finance Minister Nicola Willis stated that the payment had already been made, and the situation would be assessed before the next payment.
Prime Minister Christopher Luxon declared that New Zealand would withhold funding until Foreign Minister Winston Peters gave approval, citing the seriousness of the allegations.
Former Prime Minister Helen Clark warned against a funding cut, emphasizing the importance of a full investigation before making any decision.
An investigation is underway following Israel’s allegations, and UNRWA has fired several of its employees. The UN Secretary-General also pledged an urgent and comprehensive independent review.
UNRWA was established in 1949 to provide aid to Palestinians displaced from their homes and operates in areas such as the occupied West Bank, East Jerusalem, and Gaza, as well as in Jordan, Lebanon, and Syria. It is one of the largest employers in Gaza, with 13,000 people, mostly Palestinians, on staff.