UNRWA’S UNHAPPY BIRTHDAY

IAN BLACK

Early December will mark the 70th anniversary of the founding of UNRWA, the United Nations agency set up to deal with the hundreds of thousands of Palestinian refugees who were displaced in the Nakba and the creation of Israel two years earlier. The way things are going, there may not be much to celebrate.

UNRWA runs camps in the West Bank, the Gaza Strip, Jordan, Lebanon and Syria. It serves the needs of 5.4 million Palestinians - the world’s largest and longest-standing refugee population - providing education, health-care, municipal services and emergency responses. It is the oldest international refugee organisation in the world.

Over the past year it has faced daunting and unprecedented challenges: in September 2018 the administration of President Donald Trump announced that it was cutting all funding to what it described as an "irredeemably flawed operation". The US state department elaborated that an "endlessly and exponentially expanding community of entitled beneficiaries is simply unsustainable and has been in crisis mode for many years."

In the preceding months the US had slashed funding from $365m to $65m, resulting in redundancies and a move to part-time contracts for many of the agency's Palestinian employees. The move was seen as part of a wider onslaught on Palestinians following Trump’s controversial recognition of Jerusalem as Israel’s capital and the closure of the PLO mission in Washington.

It seemed ominously in tune with the position of the Israeli prime minister, Binyamin Netanyahu, who accused UNRWA of helping "fictitious refugees" and by doing so perpetuating the Palestinian refugee problem and “the narrative of the right-of-return, as it were, in order to eliminate the State of Israel.”

Jared Kushner, Trump's son-in-law and senior adviser, echoed the Israeli view by describing the agency as "corrupt, inefficient, and doesn't help peace." Other American critics have called on UNRWA donors to demand that the UN treat Palestinian refugees like all other refugees in the world and address their needs through the United Nations High Commission for Refugees. (UNHCR).

Israel’s official line has long been that Palestinian residents of Arab states — all of whom are considered refugees by UNRWA — should become citizens of those states, as they are in Jordan, or of the Palestinian Authority. UNRWA has been accused by Israelis of employing Hamas members and using anti-Semitic textbooks.

The UN agency, however, does not have to deal only with direct American and Israeli hostility. In recent weeks its inner workings have been subject to embarrassing public exposure. An internal UNRWA ethics report leaked to the media in late July contained shocking allegations of “sexual misconduct, nepotism, retaliation, discrimination and other abuses of authority, for personal gain (by staff), to suppress legitimate dissent, and to otherwise achieve their personal objectives." Those named included UNRWA's Commissioner-General Pierre Krahenbuhl. The UN Office of Internal Oversight Services is investigating.

Palestinian commentators have said that corruption must be expunged, but some strongly suspect that the report was deliberately leaked in order to target UNRWA. That is, on the face of it, a reasonable assumption. Israel’s ambassador to the UN immediately called on member states to stop making financial contributions.

Switzerland, the Netherlands, and Belgium have already suspended support and there are fears that Britain may follow suit. The UK was quick to help fill the gap caused by the withdrawal of US funds, but the internal scandal may be a problem of a different nature. All this has added to the pressure on the PLO, already in crisis because of US hostility, the unpopularity of Mahmoud Abbas and the long and damaging rift with Hamas in Gaza. Saeb Erakat, the PLO secretary-general, has publicly urged those countries not to stop financing UNRWA but instead ensure that Israel is held to account for its breaches of international law.

Jordan is especially worried about any further undermining of UNRWA’s work. It provides essential services to more than 370,000 Palestinian refugees in 10 camps, making it the largest host country. It remains vital to support refugees in Syria, including in the Yarmouk camp, south of Damascus. UNRWA activities in Lebanon, where Palestinians face discrimination, have been described as “a matter of life or death.” Its work in the Gaza Strip, blockaded by Israel, is essential.

This is clearly not an easy situation. UNRWA responded to the corruption allegations by pointing out that nothing had yet been proved. Its spokesman was certainly correct to point out, however, that it "is probably among the most scrutinised UN agencies in view of the nature of the conflict and complex and politicised environment it is working in.” Ten years ago, when the agency marked its 60th anniversary, a senior official commented: “We are eager for the day when the Palestinian refugee issue is finally settled. Then -– and only then -– can UNRWA’s staff complete their mission.” It is hardly surprising that it has not yet decided how to mark its 70th birthday.

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.