BERLIN Germany said on Wednesday that it plans to resume cooperation with the United Nations agency for Palestinian refugees (UNRWA), signalling a resumption of funding that was frozen after Israel accused 12 UNRWA staff of participating in the Hamas-led Oct 7, 2023 attack.

The allegations prompted 16 donor states, including the biggest, the United States, to freeze some US$450 million of funds, a blow to UNRWA's operations, as it grapples with the humanitarian crisis unleashed by Israel's assault on Gaza.

The move by Germany, UNRWA's second biggest donor, followed the publication on Monday of a review led by the former French foreign minister Catherine Colonna into UNRWA's procedures for ensuring adherence to humanitarian principles of neutrality.

In a statement, the German foreign and development ministries urged UNRWA to swiftly implement the report's recommendations, including strengthening its internal audit function and improving external oversight of project management.

"In support of these reforms, the German government will soon continue its cooperation with UNRWA in Gaza, as Australia, Canada, Sweden and Japan, among others, have already done," the statement said.

"Germany will coordinate closely with its closest international partners on the disbursement of further funds. UNRWA's short-term financing needs in Gaza are currently covered by existing funds," it added.

UNRWA employs 32,000 people in the Palestinian territories and nearby countries, including 13,000 in the Gaza Strip, where it is by far the biggest aid agency, running schools and social services for refugees who make up the majority of Gazans.

The Colonna-led review said Israel had yet to provide evidence to support its accusations- made on the basis of an UNRWA staff list given to it in March - that a significant number of UNRWA staff were members of Gaza terrorist groups.

The review found that UNRWA had "a more developed approach" to neutrality than other similar UN or aid groups, although "neutrality-related issues persist" such as staff publicly expressing political views.

The United Nations is investigating the accusations against the 12 employees in a separate probe by its oversight office. After those accusations surfaced in late January, UNRWA said it sacked 10 of the accused, and that the other two were dead.

Israel stepped up its accusations against UNRWA in March, saying that more than 450 UNRWA employees were military operatives in terrorist groups in Gaza.

Accepting the recommendations of the Colonna-led review on Monday, UN secretary-general Antonio Guterres called on all countries to actively support UNRWA, as it is "a lifeline for Palestine refugees in the region".

UNRWA chief Philippe Lazzarini said on Tuesday that UNRWA currently has enough funding to pay for operations until June.

  - Reuters