An investigation in July found that the Commissioner-General of UNRWA Pierre Krahenbuhl was accused of centralizing management, exploiting his power to promote associates and neglecting his role in favor of extensive travel around the world.
The investigation resulted in Belgium, the Netherlands and Switzerland also suspending funding for the refugee agency.
New Zealand's Foreign Minister Winston Peter initially said, “We are aware of recent media reports of allegations of ethical issues and mismanagement within UNRWA. We expect UNRWA to cooperate fully with any investigation and to report back on the investigation’s findings and recommendations,” the IINZ reported.
After a report by the IINZ was submitted to the Foreign Ministry detailing that the New Zealand government was uninformed on "substantial failings within UNRWA, did not record meetings where concerns about UNRWA were raised, and took the word of UNRWA officials without any apparent attempts at independent corroboration," the Foreign Ministry resonded to the IINZ in an e-mail.
They wrote that “the Ministry will review the findings of the UN Office of Internal Oversight Services (OIOS) report once the investigation is complete and provide advice to the New Zealand Government.
"New Zealand will not make any further payments to UNRWA until we have reviewed the report’s findings and assessed UNRWA’s response to any recommendations."
IINZ co-director Dr David Cumin said it is pleasing that New Zealand has followed the lead of other democracies. “It is great that New Zealand has finally suspended funding to UNRWA based on the recent allegations of corruption and abuse. We hope there will be an in-depth review of UNRWA and ongoing evaluation of sending Kiwi [New Zealander] tax money to an organisation that has also been shown to incite violence and perpetuate the Arab-Israeli conflict, particularly with their unique definition of a “refugee” and promoting a 'right of return,'" Cumin wrote on IINZ's website. "It is time to reconsider our ongoing, unconditional support to UNRWA and ensure our taxpayer money is being used for good."
It was only in May that Krahenbuhl, and the Permanent Representative of New Zealand to the United Nations, Craig Hawke, signed a three-year commitment of $2 million to support UNRWA programs