Israel secretly diverted Gaza aid funds to 'security establishment' - report

The transaction was processed "under the radar," in order to hide it from the public, sources told public broadcaster KAN.

 A person kneels next to food supplies as Palestinians seeking aid gather near an aid distribution site run by the U.S.-backed Gaza Humanitarian Foundation, in Rafah, in the southern Gaza Strip, May 27, 2025. (photo credit: REUTERS/Hatem Khaled)
A person kneels next to food supplies as Palestinians seeking aid gather near an aid distribution site run by the U.S.-backed Gaza Humanitarian Foundation, in Rafah, in the southern Gaza Strip, May 27, 2025.
(photo credit: REUTERS/Hatem Khaled)

The Israeli government transferred hundreds of millions of shekels earmarked for the distribution of humanitarian aid in Gaza to the "security establishment," Israeli public broadcaster KAN reported on Wednesday.

The government reportedly approved the transfer of the funds in early May without specifying the intended purposes of the money and processed the transaction "under the radar," in order to hide it from the public, sources told KAN. 

The description of the recipient of the funds was written only as "security establishment," when such transactions usually are required to include the details of the specific ministry and purpose of the funds, as alleged by KAN.

The source of the funding is an across-the-board government cut, including civilian services, which was implemented in May.

Denial from PMO, Finance Minister's office

The Prime Minister's Office and the Finance Ministry denied KAN's report, stating, "Even this evening, the State of Israel is not funding humanitarian aid to Gaza."

 People walk as Palestinians receive aid supplies from the U.S.-backed Gaza Humanitarian Foundation, in the central Gaza Strip, May 29, 2025.  (credit: REUTERS/Ramadan Abed)
People walk as Palestinians receive aid supplies from the U.S.-backed Gaza Humanitarian Foundation, in the central Gaza Strip, May 29, 2025. (credit: REUTERS/Ramadan Abed)

Both offices have previously denied financing the distribution of aid in the enclave.

Lapid has been questioning Israel's role in Gaza aid funding

There has been speculation over direct Israeli involvement in the funding, as well as possible US involvement, notably from Israeli opposition leaders.

Last week, Israeli officials expressed uncertainty over the funding for the distribution of aid in Gaza through the Gaza Humanitarian Foundation (GHF).

Opposition head MK Yair Lapid questioned the government about the source of funding for two agencies involved during a Knesset plenum debate on Monday.

Lapid questioned whether Israel had secretly financed humanitarian aid to Gaza through two shell companies, GHF and the lesser-known Safe Reach Solutions (SRS), established in Switzerland and the US. According to Lapid, Gulf states were expected to fund the aid but declined, citing concerns about the companies’ structure.

“If this money is indeed Israeli and the government is concealing it, it would not only be a deception of Israeli citizens-whose taxes fund it-but also one of the greatest diplomatic blunders in the country’s history,” Lapid said.

“If our tax money is already purchasing humanitarian aid, funding food and medicine for children in Gaza, then let's at least gain international recognition for it. For once, let’s have global headlines highlighting something positive Israel has done in Gaza.”

Yonah Jeremy Bob contributed to this story.