Palestinian UNRWA agency faces 'deep' cash crunch in April, chief says

FILE PHOTO: UNRWA operations in Palestinian territories at risk after Israeli allegations
FILE PHOTO: A UNRWA worker pushes a cart in the Aida refugee camp in Bethlehem in the Israeli-occupied West Bank, February 5, 2024. REUTERS/Mussa Qawasma/File Photo
Source: X02896

Palestinian UNRWA agency faces 'deep' cash crunch in April, chief says

By Padraic Halpin

The U.N. Palestinian refugee agency (UNRWA) said on Thursday that the cash crunch it is facing next month will get far worse in April if it cannot secure fresh funding or convince donors to resume suspended contributions.

UNRWA chief Philippe Lazzarini was speaking in Dublin, where Ireland announced 20 million euros in support for the agency and urged countries that have suspended funding to "urgently rescind that decision" and resume and expand their support.

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UNRWA, which provides healthcare, education and other services, has been pitched into crisis since Israel alleged that 12 of its 13,000 staff in Gaza were involved in the Oct. 7 Hamas-led attack on Israel that precipitated the Israel-Hamas war.

"Our operation will start to be compromised as from March but April will be really the month where we will be under deep, deep, deep negative cashflow," Lazzarini told a news conference, describing the agency as being under an "existential threat".

Negative cashflow is when an organisation has more money outgoing than incoming, impacting its ability to sustain itself.

Lazzarini has held extensive consultations with donors, including a trip to Gulf countries and Brussels, in recent days to try to plug UNRWA's funding shortfall of some $440 million.

Some UNRWA donors, such as the United States and Britain, have indicated they will not resume support until the U.N.'s internal investigation into the allegations ends. A preliminary report is due to be published in the next several weeks.

Lazzarini said the U.N. would share some observations with member states on its investigation within four weeks.

"At such a dangerous moment, it would be inconceivable to let UNRWA collapse," Irish Foreign Minister Micheal Martin told a news conference.

"People need to wake up internationally about this."

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This article was produced by Reuters news agency. It has not been edited by Global South World.