An internal U.S. government review found no proof of systematic theft of American aid by Hamas in Gaza, undermining the key justification for a proposed armed private aid operation backed by Israel and the U.S.
The analysis, which has not been previously reported, was conducted by a bureau within the U.S. Agency for International Development and completed in late June. It examined 156 incidents of theft or loss of U.S.-funded supplies reported by U.S. aid partner organisations between October 2023 and this May.
It found “no reports alleging Hamas” benefited from U.S.-funded supplies, according to a slide presentation of the findings seen by Reuters.
‘Aid Corruption’
A State Department spokesperson disputed the findings, saying there is video evidence of Hamas looting aid, but provided no such videos. The spokesperson also accused traditional humanitarian groups of covering up “aid corruption.”
The findings were shared with the USAID’s inspector general’s office and State Department officials involved in Middle East policy, said two sources familiar with the matter, and come as dire food shortages deepen in the devastated enclave.
Israel says it is committed to allowing in aid but must control it to prevent it from being stolen by Hamas, which it blames for the crisis.
The U.N. World Food Program says nearly a quarter of Gaza’s 2.1 million Palestinians face famine-like conditions, thousands are suffering acute malnutrition, and the World Health Organisation and doctors in the enclave report starvation deaths of children and others.
Deadly Aid
The U.N. also estimates that Israeli forces have killed more than 1,000 people seeking food supplies, the majority near the militarised distribution sites of the Gaza Humanitarian Foundation (GHF), the new private aid group that uses a for-profit U.S. logistics firm run by a former CIA officer and armed U.S. military veterans.
The study was conducted by the Bureau of Humanitarian Assistance (BHA) of USAID, which was the largest funder of assistance to Gaza before the Trump administration froze all U.S. foreign aid in January, terminating thousands of programmes. It has also begun dismantling USAID, whose functions have been folded into the State Department.
The analysis found that at least 44 of the 156 incidents where aid supplies were reported stolen or lost were “either directly or indirectly” due to Israeli military actions, according to the briefing slides.
Israel’s military did not respond to questions about those findings.
The study noted a limitation: because Palestinians who receive aid cannot be vetted, it was possible that U.S.-funded supplies went to administrative officials of Hamas, the Islamist rulers of Gaza.
One source familiar with the study also cautioned that the absence of reports of widespread aid diversion by Hamas “does not mean that diversion has not occurred.”
The war in Gaza began after Hamas attacked Israel in October 2023, killing 1,200 people and capturing 251 hostages, according to Israeli tallies. Nearly 60,000 Palestinians have been killed since the Israeli assault began, according to Palestinian health officials.
‘Hamas Diverts Humanitarian Aid’
Israel, which controls access to Gaza, has said that Hamas steals food supplies from the U.N. and other organisations to use to control the civilian population and boost its finances, including by jacking up the prices of the goods and reselling them to civilians.
Asked about the USAID report, the Israeli military told Reuters that its allegations are based on intelligence reports that Hamas militants seized cargoes by “both covertly and overtly” embedding themselves on aid trucks.
Those reports also show that Hamas has diverted up to 25% of aid supplies to its fighters or sold them to civilians, the Israeli military said, adding that GHF has ended the militants’ control of aid by distributing it directly to civilians.
Hamas denies the allegations. A Hamas security official said that Israel has killed more than 800 Hamas-affiliated police and security guards trying to protect aid vehicles and convoy routes. Their missions were coordinated with the U.N.
Reuters could not independently verify the claims by Hamas and Israel, which have not made public proof that the militants have systematically stolen aid.
GHF also accuses Hamas of massive aid theft in defending its distribution model. The U.N. and other groups have rejected calls by GHF, Israel and the U.S. to cooperate with the foundation, saying it violates international humanitarian principles of neutrality.
In response to a request for comment, GHF referred Reuters to a July 2 Washington Post article that quoted an unidentified Gazan and anonymous Israeli officials as saying Hamas profited from the sales and taxing of pilfered humanitarian aid.
(With inputs from Reuters)
