Speaking at a United Nations gathering in New York, Saunders said roughly 30 percent of goods entering Gaza are humanitarian aid, while the remainder consists of commercial items he described as “luxury goods” – even citing Nutella as unnecessary for survival.
He warned that UNRWA faces a US$100 million (S$127.93 million) shortfall and has already imposed austerity measures, including an 80 percent work week for staff and a 20 percent salary cut, which cannot be sustained indefinitely.
Saunders linked the agency’s mounting pressure to Israel’s upcoming parliamentary election on Oct. 27, suggesting the right‑wing government led by Prime Minister Benjamin Netanyahu is trying to showcase a hard‑line stance on security and Palestinian institutions to boost its electoral appeal.
The claim comes after a series of Israeli actions targeting UNRWA facilities: in September Israeli forces seized a vocational training centre in East Jerusalem’s Qalandia area, and in January demolition work began at UNRWA’s headquarters in the same city – actions the agency called an “unprecedented attack.”
UNRWA has also been accused by the Israeli government of providing cover for Hamas militants, allegations that have not been substantiated by conclusive evidence, according to investigations led by former French foreign minister Catherine Colonna.
If the funding gap is not closed, Saunders said UNRWA would be forced to curtail long‑term services for Palestinian refugees, though the agency is exploring alternative ways to deliver vocational training to the roughly 340 youths who attend its Qalandia centre each year.