Since seizing control of Gaza in 2007, Hamas has employed a number of methods to divert international humanitarian aid to expand its military infrastructure, pay salaries, and cement its rule.

This aid diversion, including from NGOs, was central to Hamas’ preparations for the October 7th attacks, including the massive construction of tunnels and other terror-linked installations, and stockpiling supplies and resources. After thousands of terrorists invaded Israel and committed mass atrocities, Hamas continued to commandeer aid,  taking advantage of a black market.

As part of this organized scheme, the Hamas-controlled Gaza Ministry of Social Development (MoSD) provided lists of beneficiaries to UN agencies and NGOs implementing cash-assistance and voucher projects.

Moreover, it appears that coordination with the PA’s  MoSD office in Ramallah was leveraged to circumvent Western “no-contact” policies towards Hamas-controlled entities.

Hamas Control of the MoSD

Hamas has exercised effective control over the MoSD in Gaza for several years. In April 2019, Hamas appointed a politburo member, Ghazi Hamad who was designated by the US Department of Treasury in 2024), to lead the Ministry. In the aftermath of the Oct 7th massacre, Hamad spoke about “eliminating” Israel and the desire to perpetrate similar attacks. Other high-ranking MoSD officials have praised Hamas leaders and mass terror attacks. NGO Monitor also discovered that MoSD in Gaza indoctrinated children to embrace violence against Israeli civilians. (For details, see Appendix at the end of the report.)

MoSD role in beneficiary selection

The UN’s description of the 2022 Mercy Corps Gaza project exemplifies how the Hamas-controlled MoSD directs humanitarian funding (from an NGO in this case) to selected beneficiaries:

  • “Through unconditional cash assistance, this project will identify and select the most vulnerable HHs [households]…from the Ministry of Social Development (MoSD) unserved waiting lists of Social Safety Net (SSN).” (emphases added)
  • “Mercy Corps and partners will…identify, assess and verify selected vulnerable HHs [households] to receive cash assistance, monitor activities, and ensure full coordination and engagement with the MoSD, Ministry of Agriculture, the community and all other relevant stakeholders.” (emphasis added)
  • “Mercy Corps will be the focal point of coordination with MoSD.” (emphasis added)
  • “Identifying unserved or underserved, vulnerable HHs and FHHs [female heads of household] (Group 2) will be carried out by obtaining lists through the established partnership with the MoSD.” (emphasis added)
  • “Mercy Corps and local partner NGOs will…assess and verify selected vulnerable HHs to receive cash assistance, monitor activities, and ensure full coordination and engagement with the line ministries (Ministry of Social Development [MoSD], and Ministry of Agriculture).” (emphasis added)

(For more information, see NGO Monitor’s report, “US-funded NGO Aid Benefiting Hamas: Mercy Corps and ANERA Operations in Gaza”)

Circumventing the “No-Contact” Policy

Many Western governments maintain a “no-contact policy” with Hamas, prohibiting any direct engagement with Hamas officials and institutions, and preventing cooperation with the Hamas-led MoSD in Gaza. 

A 2022 Oxfam International analysis of cash-assistance programs in Gaza, though, reveals the “legal fiction” by which diplomats, and the UN and NGO projects funded by their governments, permit themselves to work with MoSD-Gaza. 

The authors identify the “no-contact policy” with Hamas as a challenge to aid efforts:  “a key strategic priority in Gaza is the interface between humanitarian agencies and the MoSD in Ramallah [,] and the local authorities in Gaza [Hamas], with workarounds needed for the no-contact policy” (emphasis added).

Oxfam explains that “there was a recent positive agreement to have the MoSD in Ramallah represented in Gaza by official personnel to improve the coordination and collaboration between the de-facto government in Gaza and the official Ramallah government,” admitting that “even though there are PA personnel in the MoSD in Gaza, most of the staff are from the de-facto government” (i.e. Hamas). In other words, there are representatives at the MoSD-Gaza who are portrayed as being from the MoSD-Ramallah, while Hamas retains overall control of the Gaza branch and its activities.

This arrangement allows engagement with programs involving the Gaza MoSD, while claiming to work with the PA-controlled branch, but without coping with the implications of Hamas interference and diversion.

Hamas’ Cut

In addition to MoSD’s role in influencing the selection of beneficiaries for cash-assistance, Hamas also extorts exorbitant sums from cash transfers in Gaza.

As described by the 8 October 2024 minutes of a meeting of the Gaza Cash Working Group (GCWG),1 international cash-assistance is provided through a series of digital wallets and apps. (On file with NGO Monitor)

According to the minutes of a 22 October 2024 GCWG meeting, “Lack of liquidity leading to a declined economy and deterioration of currency, with withdrawal fees up to 20%…these fees are not limited to MPCA (Multipurpose Cash Assistance) but apply across the entire market.” (On file with NGO Monitor) 

This aligns with an April 2025 report by the Press Service of Israel, noting that Hamas-controlled or influenced “brokers” are part of the group’s financial apparatus:  

“‘In Gaza, a whole industry of money changers has emerged. People are getting aid via banking apps, but to turn that into real currency, they must go through brokers. They withdraw funds from these digital wallets and charge outrageous fees — anywhere between 20% and 40%. This is one of the ways Hamas is making a profit,’ he points out.

With Gaza’s banks closed, ATMs down, and aid distributed via digital apps, Ofer estimates that 100–150 money changers are currently active in Gaza. At least half are using Hamas funds, and some have been designated for terror financing by Israel’s Ministry of Defense.

‘At least half of the active money changers in Gaza operate using Hamas-controlled cash,’ Ofer estimated. ‘Some of them are paid by Hamas, others share profits or offer strategic cooperation.’”

European Government Funding for Programs Involving MoSD

The EU and European governments have funded several Gaza projects involving the MoSD, including cash-assistance programs and providing vouchers for purchasing food.

As described above, MoSD-produced lists of beneficiaries are compromised, meaning that Hamas may be directing even food voucher subsidies.

United Kingdom

On May 25, 2025, NGO Monitor published a report based on UK government documents,  revealing that Foreign Commonwealth and Development Office (FCDO) officials were aware of Hamas’ involvement and the significant diversion risks in Gaza cash-assistance programs involving MoSD. 

A British Consulate-General in Jerusalem (BCGJ) document dated November 2022, outlines a plan for “UK Humanitarian Support in the Occupied Palestinian Territories (FY 2022-2026).” One element is funding for UNICEF-administered cash assistance in Gaza. 

Among the projects outlined is the distribution of “multi-purpose cash” assistance in Gaza.  The document explains that “The cash assistance component will be implemented in coordination with the Ministry of Social Development MoSD.” As highlighted by the document, “The MoSD in Gaza is affiliated with the de facto authorities and thus UK Aid can be linked directly or indirectly with supporting the de factor [sic] authority (Hamas) in Gaza which is part of a proscribed group” (emphasis added).

British diplomats, aware that Hamas was likely dictating the disbursement of UK taxpayer funds and also that NGOs linked to other terrorist groups would receive them, identified this as merely a “reputational” risk that might reflect poorly on the UK, not a national-security, legal, or terror-financing concern.  As reflected in these documents, British officials appear more concerned about the UK’s image than about the dangerous implications of lax counter-terror financing policy. 

(For more information, see NGO Monitor’s report “Hamas Influences UK Funded Gaza Cash Programme.”)

European Union, France, Spain

In April 2023, the EU, France, and Spain provided respectively €16.8 million, €8 million, and €1.5 million “for the payment of social allowances to poor Palestinian families.” As described on the EU’s website, “The EU supports the Palestinian Authority’s (PA) Ministry of Social Development (MoSD) for the provision of basic social allowances to the most vulnerable families in the West Bank and Gaza through its Cash Transfer Programme (CTP). For this payment, the European Union has more than doubled its usual financial contribution….”

Since 2006, the EU “has been a steadfast supporter of the Palestinian Authority’s Ministry of Social Development (MoSD), collaborating to ensure that basic social allowances are extended to the most vulnerable families residing in the West Bank and Gaza.” Regarding Gaza, in August 2024, the EU wrote, “In Gaza, where the humanitarian crisis is escalating, the EU is partnering with the Ministry of Social Development and various international organizations to deliver aid through multiple humanitarian channels. This comprehensive approach aims to reach the increasing number of vulnerable families there and address their basic needs amid the ongoing war there.” 

In another example of working with the MoSD-Gaza, in 2023 the EU provided UNICEF with €1,926,460 for the program “Child Sensitive Emergency Multi-Purpose Cash-Plus and Shock Responsive Social Protection Strengthening Programme in the State of Palestine,” which took place in Gaza. According to the program description, the MoSD is the “main partner” for the program. As detailed, “the reason of working with MoSD is to ensure systems strengthening focusing on building a national shock responsive social protection system, as such programming will be made as much as possible with MoSD systems and procedures.” The EU committed an additional €2,200,000 for the same program.

Spain

In 2020, Spain provided the World Food Program (WFP) with €400,000 for a program “Cash-Based Transfer (CBT) assistance in the form electronic food voucher in Gaza,” implemented in partnership with the MoSD.

Germany

In 2023, Germany provided UNICEF with €210,822 for the “Child Sensitive Emergency Multi-Purpose Cash-Plus and Shock Responsive Social Protection Strengthening Programme,” program in Gaza. According to the program description, the MoSD is the “main partner” for the program. 

As detailed, “the reason of working with MoSD is to ensure systems strengthening focusing on building a national shock responsive social protection system, as such programming will be made as much as possible with MoSD systems and procedures.”

Switzerland

In 2023, Switzerland provided WFP with CHF1,500,000 for the “Country Strategic Plan for food assistance to the vulnerable and food insecure population in the West Bank and the Gaza Strip” project. According to the program description, “The targeting of WFP’s food assistance is based on a Proxy Means Test Formula (PMTF) developed by the Ministry of Social Development” and the “Beneficiaries who are part of the social safety net of the Ministry of Social Development have access to the Ministry’s complaint and feedback mechanism system. The Ministry provides WFP with feedback on a regular basis.”

Norway

In 2023, Norway provided the WFP with $2,847,110 for the “Country Strategic Plan for food assistance to the vulnerable and food insecure population in the West Bank and the Gaza Strip” program. According to the program description, “The targeting of WFP’s food assistance is based on a Proxy Means Test Formula (PMTF) developed by the Ministry of Social Development” and the “beneficiaries who are part of the social safety net of the Ministry of Social Development have access to the Ministry’s complaint and feedback mechanism and system. The Ministry provides WFP with feedback on a regular basis.”

Appendix

Hamas has exercised effective control over the MoSD in Gaza for several years. In April 2019, Hamas appointed a politburo member, Ghazi Hamad, to lead the Ministry. 

Ghazi Hamad

As of July 2024, Hamas leader and politburo member, Ghazi Hamad, heads the Gaza branch of the MoSd.

Ghazi Hamad, (3rd from right) meeting with officials from the UN Office for the Coordination of Humanitarian Affairs (OCHA) in November 2021.

  • In November 2024, the US Treasury Department designated Hamad, labeling him a “senior Hamas official[].” The announcement added, “Hamad previously served as a Hamas senior official overseeing border crossings at Gaza. While these border crossings were one of the primary ways Hamas smuggled weapons into Gaza, these crossings were also used to smuggle the construction equipment and materials Hamas needed to build an extensive tunnel network they intentionally interspersed among Palestinian civilians.”
  • In an October 24, 2023 interview on Lebanese television, Hamad hailed the October 7th massacre:
    • “Israel is a state that has no place on our land. We must eliminate this state because it is truly a security, military and political catastrophe for the Arab and Islamic nation. It must end.”
    • When asked if he seeks “the annihilation of Israel,” Hamad responded, “Of course.”
    • “We must teach Israel a lesson, and we will do it twice and three times. The Al-Aqsa Flood [Hamas’ name for the October 7th massacre] is just the first time, and there will be a second, a third, a fourth…On October 7th, October 10th, October one-millionth, everything we do is justified.”

Ghazi Hamad, pictured with the Hamas flag, in an October 31, 2023 interview with the Associated Press

Mohammed Al-Araeer

Other high-ranking MoSD officials have praised Hamas leaders and terrorism against Israeli civilians.

From at least November 2019 until January 2021, Mohammed Al-Araeer served as MoSD’s General Director of Social Welfare and Rehabilitation and later, in at least March 2022–March 2023, MoSD’s Director General of Family and Childhood Affairs. He has made numerous pro-terror statements:

  • On June 20, 2023, a Hamas cell murdered four Israeli civilians in a shooting attack. Al-Araeer tweeted a photo of one of the gunmen, writing, “May Allah… grant you the highest ranks in paradise.”
  • On January 28, 2023, Al-Araeer praised two gunmen who carried out separate shootings in Jerusalem on January 27 and 28, murdering seven Israeli civilians and wounding several others. He tweeted, “In the evening we had a rebellion and in the morning we had a rebellion. Blessed be the two rebels and blessed be the people of Jerusalem. Watch out for more [attacks], so help me Allah.”
  • On November 14, 2022, Al-Araeer tweeted a poster of Ahmed Al-Jabari, the late commander of Hamas’ Izzadeen Al-Qassem Brigades: “The tenth anniversary of his martyrdom is an anniversary in which the resistance’s spirit is revived and hope spreads within the [Islamic] nation for the coming liberation. #The_anniversary_of_the_general…”

Al-Araeer tweeted a poster of senior Hamas military figure Al-Jabari, commemorating the anniversary of his death as the day that “the resistance’s spirit is revived and hope spreads within the nation.”

Al-Araeer hailed a terrorist attack, calling it “a blessed operation,” and shared a poster glorifying the attack.

  • In separate shootings on October 9 and October 19, 2022, Udai Tamimi killed an Israeli soldier and wounded civilians. On October 20, 2022, Al-Araeer tweeted a poster hailing Tamimi, labeling him “a hero from Palestine.” Al-Araeer wrote, “Udai Tamimi has made two legendary scenes, the Shuafat operation scene and the scene of his martyrdom [in his second attack]. These two scenes have an extremely great impact in recruiting and uniting. We shall feel quickly their results by the hands of Palestinian youth who remain firm in the will to complete the path of holy fighting.”

Indoctrination of Children

Additionally, MoSD in Gaza has indoctrinated children to embrace violence against Israeli civilians.

On April 11, 2023, MoSD published an update on its activities in celebration of “Palestinian Child Day.” MoSD noted that one of its centers, “The Center for Women Empowerment and Nuseirat Camp Society,” conducted an event, during which an artist was invited to “draw the picture of the child prisoner Ahmad Manasara,” and multiple children were dressed in military uniforms.