Amid an international outcry over the humanitarian conditions in Gaza, Israel and the Gaza Humanitarian Foundation have repeatedly pointed to Hamas’ practice of diverting and disrupting the distribution of aid that officials say has entered Gaza unimpeded as one of the culprits behind the crisis.

NGO Monitor, which tracks the funding of anti-Israel organizations, wrote a new report given exclusively to Jewish Insider, which claims to show evidence of Hamas controlling the destination of humanitarian aid given in cash for years before and during the Gaza war, including money coming from U.N. agencies and NGOs funded by European governments.

The report alleges that the groups distributed cash and vouchers to beneficiaries selected by the Hamas-run Gaza Ministry of Social Development (MoSD), which since 2019 has been led by Ghazi Hamad, a member of the Hamas politburo who was designated a terrorist by the U.S. last year and who, weeks after Hamas’ Oct. 7, 2023 attacks, vowed that “there will be a second, a third, a fourth … one-millionth” Oct.7-style attack on Israel.

Hamad made headlines in Israel earlier this week with his assertion that the commitments of 11 countries to recognize a Palestinian state is an “achievement” stemming from Hamas’ attacks on Israel. 

In 2023, the EU provided $19.6 million, France donated $9.34 million and Spain $1.75 million “for the payment of social allowances to poor Palestinian families.” The EU stated that since 2008, it “has been a steadfast supporter of the Palestinian Authority’s Ministry of Social Development, collaborating to ensure that basic social allowances are extended to the most vulnerable families residing in the West Bank and Gaza.” 

In August 2024, according to the report, the EU and Spain provided 15.5 million Euros of aid for Gaza, saying they were partnering with the PA MoSD to deliver it. The EU also gave UNICEF over 4 million Euros in 2023 for a project in which the MoSD was the “main partner.”

Among the governments funding programs involving the MoSD is the U.K., even though its Foreign Office had been made aware of the matter and expressed concern over possible “severe” reputational damage that could come from its involvement. 

Other countries funding programs working with the MoSD, according to the NGO Monitor report, include Germany, Switzerland and Norway.

The EU and others say that they are working with the MoSD in Ramallah, controlled by the Palestinian Authority, as opposed to the Gaza MoSD, controlled by Hamas.

However, the NGO Monitor report argues that the Ramallah MoSD was used to circumvent Western countries’ rules against contact with Hamas, a proscribed terrorist organization, while the beneficiaries were still chosen by the Hamas-controlled MoSD in Gaza.

A 2022 Oxfam International analysis of its cash-assistance programs in Gaza described “workarounds needed for the no-contact policy” with Hamas, by way of “the interface between humanitarian agencies and the MoSD in Ramallah, and the local authorities in Gaza,” otherwise known as Hamas. 

The Oxfam analysis notes that there is “collaboration between the de-facto government in Gaza and the official Ramallah government,” and that “in the MoSD in Gaza, most of the staff are from the de-facto government,” meaning Hamas.

The organization called for more work with Arab humanitarian aid groups, “capitalizing on the fact that the latter are not restricted by no-contact policies,” meaning that they work directly with Hamas.

Hamas also takes a cut of the cash that aid organizations transfer into Gaza.

The minutes from a Oct. 8, 2024, meeting of the Gaza Cash Working Group, a U.N.-led coordination mechanism for U.N. agencies and international NGOs, state that the Hamas-controlled government in Gaza charged “withdrawal fees up to 20% … these fees are not limited to multipurpose cash assistance, but apply across the entire market.” 

NGO Monitor also highlighted a 2022 Mercy Corps Gaza project as an example of Hamas control of humanitarian funding. A description of the project from the U.N. repeatedly referred to the MoSD’s central role.

“Through unconditional cash assistance, this project will identify and select the most vulnerable HHs [households] … from the Ministry of Social Development (MoSD) unserved waiting lists of Social Safety Net (SSN),” the U.N. description states. At another point, it says that the project will be undertaken with “full coordination and engagement with the MoSD.”

Oxfam responded to inquiries from JI that the organization “operates under a strict and clear no-contact policy with de facto authorities in Gaza. We do not work or communicate with the Ministry of Social Development (MoSD) in Gaza. In line with this, our work in Gaza is coordinated through the MoSD’s PA focal point based in Ramallah.”

“The reference in the 2022 study is not an admission of direct engagement,” the organization continued. “It describes sector-wide challenges … We have robust safeguards in place to prevent any misuse or manipulation of our aid programs and adhere to the highest standards of humanitarian principles and accountability.” 

Mercy Corps also told JI it has a strict no-contact policy against engaging with sanctioned entities and that allegations that it worked with the MoSD in Gaza is “false and inaccurate.” Their aid recipient lists came from the MoSD in Ramallah, managed by the PA, the organization stated.

“We do not and have not coordinated with Hamas in Gaza to implement our aid programs, and allegations that we work with Hamas are false,” the group stated. “We are confident in our processes and policies, including a rigorous verification process for program participants, which ensures we help the most vulnerable families, while avoiding those with affiliation or contact with sanctioned groups. We have decades of experience delivering humanitarian assistance in high-risk environments like Gaza.”

The BBC reported on Wednesday that Hamas has continued to pay 30,000 salaries throughout the war in Gaza using “a secret cash-based payment system” even as Israel attempts to block the terrorist group from making payments. 

Hamas employees receive encrypted messages inviting them to “meet a friend for tea” at a specific time and place. When they arrive, someone hands them an envelope of cash and then walks away. 

Hamas has stockpiled about $700m in cash, according to the BBC, but has only paid $7m in salaries since the war began in Oct. 2023. Employees reportedly only receive about 20% of their wages, and the BBC quoted employees claiming to have non-combat roles who were frustrated with the insufficient payments and the dangers in having to travel to collect the cash amid Israeli airstrikes.

In addition, Hamas has reportedly distributed food packages to its members, angering Gazans who accuse the terrorists of not aiding others, according to the BBC.