Sources: Secret Internal Probe at Board of Peace Over Corruption Allegations and Misuse of Gaza Funds

Translation - Shehab

EuroBrief News has revealed that a secret internal investigation has been opened at the Board of Peace, following reports alleging embezzlement, financial misconduct and misallocation of funds tied to the administration of the Gaza Strip.

Citing informed sources, the network reported that the investigation is scrutinising financial practices within the Palestinian administrative committee formed to run Gaza, as well as within the Board of Peace's own organisational structure, covering the mechanisms for allocating and approving funds and the methods by which they were disbursed.

The sources confirmed that the proceedings have been placed under strict confidentiality, amid mounting internal pressure to prevent details about the funds suspected of misuse or waste from leaking.

Questions over Mladenov's powers

According to the same sources, Nikolay Mladenov, the Board of Peace's High Representative in Gaza, faced questions and internal inquiries concerning financial management and disbursement procedures.

For his part, Mladenov defended his position, claiming that the board's institutional and administrative structures were not yet fully complete and that he had been granted broad powers to assess and manage expenditures as he saw fit.

The sources also indicated that the United Arab Emirates had given him considerable flexibility in managing funds and operations.

EuroBrief News, meanwhile, noted that it was unable to independently obtain the internal investigation's documents and cannot determine whether the probe has established that embezzlement or corruption actually occurred, since no official announcement has been issued specifying the parties targeted or the sums under examination.

A controversial financial backdrop

The developments come amid earlier reports that raised questions about the financial engineering adopted around the Board of Peace and the administration of Gaza. The Financial Times reported last May that the board's official fund, managed through the World Bank, had received no money despite pledges announced in the billions of dollars, noting that some contributions were transferred directly through a bank account at JPMorgan linked to the board, an account not subject to independent disclosure requirements equivalent to the World Bank's.

The same reports indicated that about $20 million from the UAE and $3 million from Morocco helped fund Mladenov's office and the salaries of members of the Palestinian committee running Gaza, while $100 million pledged by the UAE to train a new police force remained frozen, with the programme not yet begun at the time the reports were published.

Open questions over the fate of the funds

These details reinforce the ambiguity and uncertainty that have long surrounded the committee's finances and powers. The Guardian previously reported last February that committee members in Cairo lacked clarity on the available budget and the institutional framework under which they operate, amid concerns raised by proposals to grant broad legal immunities to the board and its staff.

Mladenov had previously defended the board's financial procedures publicly last August, denying any financial arrangements with Hamas and stressing that contracts are subject to review, approval and auditing by donor governments. But the reports of the internal investigation keep questions open about how much money the committee and the Board of Peace have received, how it has been spent across salaries, offices and administrative costs, and how far Gaza's residents have benefited directly, amid demands for transparent disclosure of the accounts, auditing mechanisms and results.