UN Palestinian refugee agency got passing grade from CIDA Government still hasn't explained funding change By Lee Berthiaume Published May 12, 2010

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Jordan's ambassador to Ottawa says the Canadian government still hasn't explained exactly why it stopped providing direct budgetary support to the UN agency responsible for helping Palestinian refugees in the Middle East, 1.9 million of which live in his country.

A representative for the UN Relief and Works Agency for Palestine Refugees in the Near East, or UNRWA, says the organization is similarly mystified, but that Canadian budgetary support is essential as the agency struggles with a $90-million shortfall this year.

What has become clear, however, is that despite allegations made by pro-Israel groups—and alluded to by some Cabinet ministers—CIDA staff were extremely confident that there was "minimal" risk of Canadian funding to UNRWA being directed to terrorist groups. Rather, internal CIDA documents say the agency was "quite strong in its relevance to Canadian priorities" and financial management.

Canada has been contributing funds to UNRWA since 1950, when the agency was established to provide emergency relief and support to Palestinians displaced by the Arab-Israeli war. UNRWA now helps 4.7 million registered Palestinian refugees in the Middle East.

According to a document prepared for CIDA President Margaret Biggs in advance of a June 5, 2009 meeting with Jordan's ambassador and obtained through an Access to Information request, "The Agency's role in meeting their [Palestinian refugees'] overwhelming basic needs is indispensable and symbolizes the international community's commitment to assisting the refugees until all stakeholders agree to transfer this responsibility."

From 1990 to 2006, CIDA provided UNRWA with about $10 million each year in core funding. That amount increased to $15 million in 2007. Canada also provided anywhere from $1 million to $16 million in response to UNRWA emergency appeals during that time. Altogether, Canada alternated between being UNRWA's sixth- and seventh-largest donor.

"Overall, CIDA has had a rich history of support to UNRWA," the documents read. "This commitment has also raised expectations from other donors of continued Canadian assistance and contribution to the Agency."

This past January, then-Treasury Board president Vic Toews surprised many when he announced during a trip to Jerusalem that Canada was no longer going to be providing core budget support to UNWRA. In practical terms, that meant Canada was no longer giving money on an ongoing basis to help it pay the salaries of its 30,000 staff members, build schools and health clinics, and provide text books, medical equipment and other necessary supplies.

Following an extremely confusing round of media interviews, in which Mr. Toews appeared to call the UN agency's accountability and "values" into question, government officials said Canada would be directing that money towards an UNRWA emergency appeal for food aid.

While a spokesman for Ms. Oda told Embassy in January that the decision was made simply to align Canada's contributions to UNRWA with CIDA's food security agenda, many, including pro-Israel groups, weren't buying that explanation.

"The apparent rationale behind the decision flows from concerns by the government about the lack of transparency and accountability regarding UNRWA's expenditure of Canadian funds within its general operation budget," the Canada-Israel Committee said in a press release.

Groups like CIC and B'Nai Brith have long alleged that UNRWA has been infiltrated by Hamas, that money given to the UN agency is being diverted to terrorist groups, and that UNRWA facilities are being used as recruitment centres. It appears some of these concerns resonated inside government.

On the morning of March 12, 2009, a teleconference was scheduled between CIDA Minister Bev Oda and UNRWA Commissioner General Karen AbuZayd. In advance, a briefing book that included "key messages" for Ms. Oda to relay to Ms. AbuZayd and questions to ask.

"What measures do you feel would best demonstrate UNRWA's neutrality in carrying out its mandate?" reads one question. "What do you see as the inherent challenges in guarding that neutrality?"

Apparently the conversation did not mollify the CIDA minister because during an appearance before the Foreign Affairs committee on May 27, 2009, she said: "There are some questions about UNRWA. We do support UNRWA, but it doesn't mean that we don't question or that we don't ensure that any organization that we support is totally reliable, can meet the expectations, and can serve us as well as the people they're there to serve."

Yet the CIDA documents show that after Canada became the first country to cut ties with the Hamas-led government in the Palestinian Authorities in 2006, "CIDA investigated UNRWA's internal financial and human resources policies and controls. CIDA's legal and program staff concluded that the risks of UNRWA funding terrorist groups are minimal." An updated analysis in 2009 concluded the UN agency represented a "low risk" from a financial management perspective.

A review of the effectiveness of CIDA's multilateral partners painted a mixed picture. Evaluators deemed UNRWA weak in integrating environmental sustainability, conducting internal monitoring and evaluation, and in development knowledge. However, "The Agency was found to be quite strong in its relevance to Canadian priorities, financial resource management, and capacity to provide effective humanitarian assistance."

The documents cite UNRWA's "policy of zero tolerance concerning the involvement of its staff in terrorist organi[z]ations" and that "UNRWA, as any agency, cannot police the beliefs as well as the national and political sympathies of its staff, but its [sic] does strictly police their behaviour."

Whether concerns of links to terrorist groups were the basis for Canada's decision or not, the fact is that the government has provided little in the way of explanation for cutting its core funding to UNRWA, says Nabil Barto, Jordan's ambassador to Canada.

"It started last year, February last year," Mr. Barto said. "We heard rumours that this was coming, and at that time we tried to move and we discussed it with CIDA and other government officials but there were no clear answers. And I believe, up to now there's no clear answer."

Mr. Barto says the Jordanian government spends about $750 million each year supporting the refugees, and international assistance to UNRWA from countries like Canada is essential.

"The Canadian government, through CIDA, has been donating a lot of money for UNRWA," he said. "Unfortunately the problem is that money is going to emergency cases and other things, but not to the regular budget of UNRWA.

"At the highest level in Jordan we are very much concerned by this. And what we are concerned about too is having Canadians not paying the regular budget and then having other countries following the Canadians' way of doing things. And then UNRWA is finished after that."

According to Andrew Whitley, director of the UNRWA representative office in New York, the agency is grappling with a $90-million budgetary shortfall this year. He says the UN agency has "never had an explanation in writing or even an official explanation about why Canada chose last year not to be able to fund our regular budget."

However, in March, the government quietly directed an additional $15 million in unused funds to an UNRWA emergency appeal for Lebanon and the West Bank and Gaza. This has added some hope.

"So we're watching and waiting with attention and concern knowing that people at CIDA and Foreign Affairs are talking about this subject right now," Mr. Whitley said.

lee@embassymag.ca