US judge dismisses lawsuit accusing UN agency for Palestinian refugees of funding Hamas

A US judge has dismissed a lawsuit accusing the UN agency for Palestinian refugees (UNRWA) of providing funding that enabled Hamas’ Oct. 7, 2023 cross-border raid on Israel, The New York Times reported.

Judge Analisa Torres of the Federal District Court in Manhattan ruled that the UN agency is protected by immunity as part of the United Nations, the Times said on Thursday.

According to the report, the suit, filed on behalf of roughly 100 Israeli plaintiffs, including survivors of the attack, the estates of those killed, and at least one hostage, alleged that the UNRWA allowed Palestinian resistance group Hamas to divert funds for its own use.

The Trump administration argued in April that the UN agency and certain officials named in the suit, including Commissioner-General Philippe Lazzarini, should not enjoy immunity. In a letter to the court, the Justice Department claimed the agency and its officers “must answer these allegations in American courts.”

Last year, the previous Joe Biden administration maintained in court papers that the agency is immune from lawsuits. The judge’s ruling sided with that view.

The plaintiffs claimed UNRWA paid local employees in cash and required them to convert it through Hamas-affiliated money changers, generating millions of dollars in additional revenue for the group.

A lawyer for the plaintiffs did not immediately respond to requests for comment Thursday, nor did a spokeswoman for the agency, the report said.

- Pushing back on unsubstantiated allegations

The agency has faced repeated allegations by Israel of links between its staff and “militant groups,” claims it has consistently denied, citing a lack of evidence.

Citing the allegations, though they were not substantiated, some Western politicians and countries called for defunding the UNRWA, despite the vital work it has done for decades for Palestinian refugees.

For the claims, Israel provided a list of 100 alleged “militants” but gave no substantiation despite the UNRWA's repeated requests.

"Agency has requested on numerous occasions for cooperation from the Government of Israel by providing information and evidence to substantiate the accusations made against UNRWA," the agency said in a document responding to Israel’s allegations.

"To date, UNRWA has not received any response, nor has the Government of Israel shared any evidence."

Last year, at the request of the UN secretary-general, an independent investigation was launched by the highest investigative body in the United Nations, the Office of Internal Oversight Services (OIOS).

In the document, titled "Facts Versus Claims," the UNRWA said the OIOS probe found no evidence in one case and insufficient evidence in nine others.

In the remaining nine cases, “the evidence obtained by OIOS – if authenticated and corroborated – might indicate that the staff members may have been involved, and their employment was terminated in the interest of UNRWA,” the document said.