By Robert PlummerBBC News29 January 2024, 10:55 GMTUpdated 22 minutes agoImage caption, UNRWA has been distributing flour to Palestinians in GazaSeveral countries have stopped their financial support to the biggest UN agency working in Gaza, as the crisis escalates due to the reported involvement of some staff in the 7 October Hamas attacks on Israel. Japan and Austria announced their decision to suspend payments to the UN agency for Palestinian refugees, UNRWA. The US, UK, Germany and Italy have also halted their funding. UNRWA told the BBC that it is “extremely desperate” and that “the humanitarian needs in Gaza are growing by the hour”.The agency terminated several of its staff due to allegations that they were involved on 7 October, when Hamas militants entered Israel, resulting in the deaths of around 1,300 people, mainly civilians, and the abduction of approximately 250 others to Gaza as hostages. According to Gaza’s Hamas-run health ministry, more than 26,000 individuals, predominantly women and children, have died in Gaza since Israel initiated a major military operation in response. Another 1.7 million people have fled their homes, with many taking refuge in UNRWA facilities.According to a report in the New York Times, an Israeli intelligence file claims that nearly 200 UNRWA workers are operatives for Hamas or Islamic Jihad, without providing detailed evidence. The file also alleges that at least 12 workers crossed into Israel on 7 October. UNRWA fired nine of these employees and stated that it is conducting an investigation. Another report in the Wall Street Journal, also referencing the Israeli intelligence file, alleges that about 1,200 of UNRWA’s 12,000 employees in Gaza have connections to Hamas or Islamic Jihad. On Monday, Israeli Prime Minister Benjamin Netanyahu appeared to confirm the contents of the file, referring to the agency as “infected with Hamas”.”We found that there were 13 UNRWA workers who were directly or indirectly involved in the 7 October massacre,” he said in an interview with UK channel TalkTV. “In UNRWA schools, they’ve been teaching the doctrines of annihilation for Israel – the doctrines of terrorism, celebrating terrorism, praising terrorism.”The UN declined to comment, stating that an internal investigation into the agency is ongoing. However, earlier on Sunday, UN Secretary-General Antonio Guterres expressed horror at the accusations related to the 7 October attack. Despite this, he has urged donor countries to “ensure the continuity of UNRWA’s operations”.In a statement on Sunday, he said: “Of the 12 people implicated, nine were immediately identified and terminated by the Commissioner-General of UNRWA, Philippe Lazzarini; one is confirmed dead and the identity of the two others is being clarified.” He also stated that Gaza should not be penalized for the allegations.On Monday, Israeli Foreign Minister Israel Katz said he had canceled meetings with Mr. Lazzarini and called for his resignation. A spokesperson for UNRWA stated that if funding is not reinstated, the agency will not be able to continue its operations beyond the end of February.Japan’s foreign ministry announced its decision to suspend payment, citing “extreme concern about the alleged involvement of UNRWA staff members in the terror attack on Israel”. The ministry has been “strongly urging” UNRWA to investigate the allegations “promptly and thoroughly”. Japan is the sixth-largest donor to the agency, according to UNRWA’s 2022 figures.On Monday, Austria announced that it was following suit, calling for “a comprehensive, swift and complete investigation into the allegations”.Juliette Touma, the director of communications at UNRWA, stated in a BBC interview that the allegations were “extremely serious” and that Mr. Lazzarini took an “extraordinary measure” by immediately dismissing the staff members in question.”We are extremely desperate. It has come at a time when the humanitarian needs in Gaza are growing by the hour,” she said, adding that she had visited the territory herself last week.”People continue to be displaced. People are hungry. The clock is ticking fast towards famine. “We are doing everything possible to avert us from getting towards famine. But this lack of funding that we have been faced with now, when at least 10 of the largest donors have put a temporary pause on the funding, this is going to have very, very serious repercussions on what is, right now, the largest humanitarian operation in Gaza.”She mentioned that UNRWA has not seen the evidence, but the allegations are being investigated by the UN’s oversight office in New York.