World Vision Palestinian funds suspended over Hamas charges

Israel charges a top employee with siphoning millions of dollars from World Vision funds and transferring them to Hamas.

World Vision’s Mohammed Halabi has been charged by Israel with having diverted millions of dollars in foreign aid to the Palestinian Islamic movement Hamas.

Australia has suspended funding for World Vision’s charity work in the Palestinian Territories after Israel charged a senior employee with siphoning millions of dollars from the Christian charity’s funds and transferring them to the military wing of Islamic political group Hamas.

Mohammed el-Halabi allegedly established a “systematic and sophisticated mechanism” to divert up to $65 million over the years to the militant group, which rules Gaza, creating fictitious humanitarian projects and doctoring inflated receipts in order to get the funds to Hamas, according to Israeli security agency the Shin Bet.

Mr el-Halabi, whose actions helped Hamas build illegal underground tunnels and purchase weapons for terror attacks, was charged on Thursday, the Shin Bet said.

Foreign Minister Julie Bishop’s department revealed this morning it was suspending funding to the World Vision in the Palestinian Territories while it investigated the “deeply troubling” allegations.

“Australia’s aid to the Palestinian Territories is intended for vital humanitarian and development assistance to the Palestinian community,” the Department of Foreign Affairs and Trade said.

“Any diversion of the generous support of the Australian and international community for military or terrorist purposes by Hamas is to be deplored and can only harm the Palestinian people.”

It was not clear whether money provided by Australian taxpayers was funnelled to terrorists, although around $104,000 donated by the United Kingdom was allegedly used to construct a Hamas military outpost, “paid in cash, while salaries were paid to terrorists who worked in the construction of the base”.

Mr el-Halabi, who is aged in his late 30s and from Jebaliya in the Gaza strip, was arrested in June. He allegedly underwent Hamas military and organisational training in the early 2000s and was “planted” by the group at World Vision in 2005, where he climbed the ranks to become director of the Gaza branch.

“He began to conduct security operations for Hamas’ military wing which was essentially exploiting the organisation’s funds for Hamas’ fortification,” the Shin Bet said.

Tim Costello, the chief executive of World Vision Australia, expressed shock at the “explosive allegations” as the US-based charity employed internal and external agencies to screen its employees for political ties.

“We have seen no evidence. This is what is really worrying us,” Mr Costello, the brother of former treasurer Peter Costello, told ABC radio.

“I was a lawyer for 15 years and I can tell you: there are always two sides. We’ve only heard one side, so I’m really wanting a fair process and the other side, which is Mohamed’s side, to actually be heard before judgment is made.”

Mr Costello said Mr el-Halabi had been employed by World Vision for about a decade.

Hamas spokesman Hazem Qasem rejected the allegations as “lies that may be part of the justification of the blockade imposed by the occupation on Gaza”.

The Shin Bet alleged Mr el-Halabi diverted the funds by initiating fictitious projects meant to help farmers, the disabled and fishermen.

He would falsely list Hamas operatives as workers on those projects and write up inflated receipts, according to the Shin Bet. Companies hired to carry out certain projects under fictitious tenders were “made aware” that 60 per cent of the project’s funds were destined for Hamas, the Shin Bet statement said, adding that some of World Vision’s budget was used to pay the salaries of Hamas operatives.

The Shin Bet also said Mr el-Halabi would transfer to Hamas materials such as steel, digging equipment and pipes that were meant for World Vision agricultural assistance. Thousands of packages with food and medical aid received monthly would allegedly be diverted to Hamas operatives and their families rather than reach Gazan civilians.

Beyond arms purchases and tunnel digging, the funds also helped build military bases, including one constructed in 2015 built entirely from British aid money, according to the Shin Bet.

The security agency also said that since his arrest, Mr el-Halabi divulged intelligence about employees working for United Nations agencies and other aid groups who were also assisting Hamas, without elaborating.

Additional reporting: AP