USAID analysis 'finds no evidence' of Hamas theft of Gaza aid

State Department disputes findings and cites video evidence of Hamas looting

An Israeli soldier stands by aid bags waiting to be picked up on the Palestinian side of the Kerem Shalom crossing into Gaza. Getty

An internal US government analysis found no evidence of systematic theft by Hamas of US-funded humanitarian supplies, challenging the main rationale that Israel and the US give for backing a new armed private aid operation.

The analysis, which has not been previously reported, was conducted by a bureau within the US Agency for International Development (USAID) and completed in late June.

It examined 156 incidents of theft or loss of US-funded supplies reported by US aid partner organisations between October 2023 and May.

It found “no reports alleging Hamas” benefited from US-funded supplies, according to a slide presentation of the findings seen by Reuters.

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".

Lack of food hindering injured Gazans' recovery

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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 UN World Food Programme says nearly a quarter of Gaza’s 2.1 million Palestinians face famine-like conditions, thousands are suffering from acute malnutrition, and the World Health Organisation and doctors in the enclave report starvation deaths of children and others.

The UN 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 US logistics firm run by a former CIA officer and armed US 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 US 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 US-funded supplies went to administrative officials of Hamas.

Lorries loaded with aid packages are parked on the Palestinian side of the Kerem Shalom crossing. AP

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.

Israel's accusations

Israel, which controls access to Gaza, said that Hamas steals food supplies from the UN 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 lorries.

Those reports also show that Hamas has diverted up to 25 per cent 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 co-ordinated with the UN.

The GHF also accuses Hamas of massive aid theft in defending its distribution model. The UN and other groups have rejected calls by the GHF, Israel and the US to co-operate with the foundation, saying it violates international humanitarian principles of neutrality.

In response to a request for comment, the 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.

Reporting losses

The 156 reports of theft or losses of supplies reviewed by BHA were filed by UN agencies and other humanitarian groups working in Gaza as a condition of receiving US aid funds.

The second source familiar with the matter said that after receiving reports of US-funded aid thefts or losses, USAID staff followed up with partner organisations to try to determine if there was Hamas involvement.

Those organisations also would "redirect or pause" aid distributions if they learnt that Hamas was in the vicinity, the source said.

Aid organisations working in Gaza are also required to vet their personnel, subcontractors and suppliers for ties to extremist groups before receiving US funds, a condition that the State Department waived in approving $30 million for the GHF last month.

The slide presentation noted that USAID partners tended to over-report aid diversion and theft by groups sanctioned or designated by the US as foreign terrorist organisations – such as Hamas and Palestinian Islamic Jihad – because they want to avoid losing US funding.

Of the 156 incidents of loss or theft reported, 63 were attributed to unknown perpetrators, 35 to armed actors, 25 to unarmed people, 11 directly to Israeli military action, 11 to corrupt subcontractors, five to aid group personnel “engaging in corrupt activities”, and six to “others", a category that accounted for “commodities stolen in unknown circumstances”, according to the slide presentation.

The armed actors “included gangs and other miscellaneous individuals who may have had weapons”, said a slide.

Another slide said "a review of all 156 incidents found no affiliations with" US-designated foreign terrorist organisations, of which Hamas is one.

A Palestinian woman holds her five-month-old daughter, Rama Abu Aya, who is malnourished, at Nasser Hospital in Khan Younis. Reuters

“The majority of incidents could not be definitively attributed to a specific actor,” said another slide. “Partners often largely discovered the commodities had been stolen in transit without identifying the perpetrator.”

It is possible there were classified intelligence reports on Hamas aid thefts, but BHA staff lost access to classified systems in the dismantlement of USAID, said a slide.

However, a source familiar with US intelligence assessments told Reuters that they knew of no US intelligence reports detailing Hamas aid diversions and that Washington was relying on Israeli reports.

The BHA analysis found that the Israeli military “directly or indirectly caused” a total of 44 incidents in which US-funded aid was lost or stolen. Those included the 11 attributed to direct Israeli military actions, such as air strikes or orders to Palestinians to evacuate areas of the war-torn enclave.

Losses indirectly attributed to the Israeli military included cases where they compelled aid groups to use delivery routes with high risks of theft or looting, ignoring requests for alternative routes, the analysis said.