FT: US State Department investigates Gaza humanitarian aid fund

An internal oversight body at the US Department of State has launched an investigation into the now-defunct Gaza Humanitarian Foundation (GHF), according to the Financial Times (FT), citing three sources familiar with the review.

The inquiry is focused on a $30 million grant the fund received from the State Department in June of last year. The investigation is being led by the department’s Office of Inspector General (OIG), who is examining the scale of allocated funding, the origin of budget resources, and how the money was distributed.

Officials are also reviewing pricing structures for humanitarian supplies and services purchased using the funds. 

A GHF spokesperson, who requested anonymity, said they had no knowledge of any inquiry by the OIG, adding that most food supplies were sourced locally at fair market rates. However, an internal review within GHF indicated that transportation expenses were notably elevated due to the risks associated with operating in an active conflict zone.

According to the spokesperson, the foundation was already working on measures to cut logistics costs when operations were asked to be suspended in October by Israel's government, following a US-mediated ceasefire agreement. They declined to provide further details regarding the organisation’s broader financial structure.

The organisation was created last year with backing from the administration of Donald Trump and the Israeli government, with the aim of replacing the aid delivery framework run by the United Nations in Gaza. The United States was the only country to publicly confirm financial support for GHF. UN officials have described the initiative as a “fig leaf” for Israeli objectives, while several humanitarian organisations refused to cooperate with it.

By Jeyhun Aghazada