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Asharq Al-Awsat
Asharq Al-Awsat
World
Ramallah - Asharq Al-Awsat

UNRWA: Financial Crisis May Affect Employee Salaries, Operational Projects

Palestinian employees of the United Nations Relief and Works Agency (UNRWA). (Reuters)

Media Advisor to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) in Gaza Adnan Abu Hasna has warned against the effect of the financial shortfall on the agency’s operations.

Abu Hasna said that the agency’s financial crisis may impact its operational projects and employee salaries in November and December if it fails to mobilize the necessary fund during the UNRWA Pledging conference, which will be held on the sidelines of the 77th session of the UN General Assembly on September 22.

He told reporters on Saturday that the Arab financial support to the UN agency reached $200 million in 2018.

“In 2021, the Arab financial aid to the agency declined to $20 million,” he noted, adding that the financial support in 2022 will be much less than the expected.

He voiced concern over repeating 2021’s scenario, especially in light of the financial deficit and the decline in support provided by Arab states.

Political changes in the region greatly affect the support provided to UNRWA, Abu Hasna affirmed, noting that donors are currently focusing on the Ukrainian crisis, in addition to the hike in prices of raw materials and the repercussions of the coronavirus crisis.

He expressed hope that the agency would be able to mobilize the required and enough financial support that would cover its financial deficit, which amounted to $100 million.

According to UNRWA, this deficit is exacerbating in the Gaza Strip, in light of the siege, the consequences of the political division, and the continuous wars, which raise unemployment rates.

The agency spends about 38% of its budget in the enclave, especially that the refugees there constitute about 20% of the population.

The UNRWA Commissioner-General, Philippe Lazzarini, warned that the financial challenges could lead to the slow erosion of the quality of the agency’s services or to their interruption.

The agency has recently stated that it is facing the most threatening financial situation of its recent history.

“This financial crisis happens amidst global attention shifting elsewhere, and general fatigue from what is seen by some as an irritatingly long and unresolved conflict.”

UNRWA has been suffering financially for several years. The United States halted its support for the agency under former President Donald Trump before the current administration signed a framework agreement with it to restore US assistance programs.

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