The executive vice-president of the European Commission, Valdis Dombrovskis, announced, on Tuesday 21 November, that the review of funds destined for the Palestinians found “no indications of EU money having directly, or indirectly, benefited the terrorist organisation Hamas”. According to the Commission, this shows that its controls and existing safeguards are working properly.
“This means that our aid will continue”, added Paolo Gentiloni, European Commissioner for Economy.
The launch of this review, announced on 9 October, two days after the Hamas attacks in Israel, covered the Commission’s entire development policy portfolio, including programmes in support of the Palestinian population, the Palestinian Authority and the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).
The review covered 119 contracts worth €331 million. “We have not identified any breach of contractual obligations at this stage”, said a senior European official on Monday 20 November.
In total, 88% of the contracts were validated and additional information was requested for 12% of the programmes (i.e. €38.9 million). Civil society organisations were asked to clarify how they applied the controls. According to the senior official, allegations of breach of contract, including incitement to hatred and violence, glorification of terrorism and hate speech, have been identified in two projects.
Payments will be made once satisfactory clarifications have been provided, in accordance with the Financial Regulation, warns the Commission.
The review also highlighted the impossibility of continuing seven programmes worth €75.6 million. These are mainly major infrastructure projects in Gaza, including the desalination plant and access to water and gas services. These funds will be allocated to the Palestinians: 25 million has already been redirected to humanitarian assistance.
Although no cases of misappropriation of European funds by Hamas have been detected, the Commission considers in its communication that “given that the new circumstances in the Middle East imply additional risks, in particular as regards the implementation of the ‘anti-incitement clause’ (to hatred and violence, editor’s note) and the misappropriation of funds”, it is appropriate to identify additional measures to be applied to grants awarded to civil society organisations.
The EU institution is therefore asking civil society organisations to provide: - an overview of the measures put in place to ensure compliance with EU sanctions and ‘anti-incitement clauses’; - an assessment of their ability to continue implementing the contracts despite changes in the situation on the ground.
The Commission also wants to incorporate the ‘anti-incitement clause’ and the ‘restrictive measures clause’ into all new contracts with civil society organisations in Palestine, and to check that the ‘anti-incitement clause’ is properly implemented by third parties. There will also be tighter controls on sub-beneficiaries.
In addition, the Commission will introduce ad hoc eligibility criteria for participation in calls for proposals or direct awards of contracts, criteria that effectively prevent entities involved in acts of incitement to hatred and/or violence from winning a contract. In agreement with the Palestinian Authority, it will also extend control of the PEGASE programme for Civil Servants and Pensioners (CSP) and Cash Transfer Programmes (CTP) to first-degree relatives of beneficiaries, excluding minors.
To see the report: https://aeur.eu/f/9nj (Original version in French by Camille-Cerise Gessant)