Board of Peace funds will be used to cover severance packages of Hamas civil servants not hired by NCAG — diplomat

WASHINGTON — The much-discussed $400 million earmarked in the Board of Peace’s disarmament plan will be used to pay severance for Hamas civil servants who don’t end up being hired by the new Palestinian technocratic government, an Arab diplomat from one of the mediating countries tells The Times of Israel.

The issue gained attention yesterday when the Kan public broadcaster reported that Hamas was assured by mediators that $400 million of its debt would be covered by the Board of Peace if it agreed to the disarmament plan.

Board of Peace Gaza envoy Nickolay Mladenov subsequently issued a statement denying the existence of a financial agreement with Hamas, while insisting that no Board of Peace funds would be channeled through the terror group.

The plan states that the new Palestinian technocratic government known as the National Committee for the Administration of Gaza (NCAG) “shall seek to assess the legitimate commitments to suppliers, contractors and other parties — up to a total amount of no more than $400M — and address them.”

Explaining the policy further, a source familiar with the matter tells The Times of Israel that upon taking power, the Board of Peace overseen-NCAG will conduct a lengthy audit of Hamas’s finances.

If the audit uncovers payments to contractors for “legitimate” activity that were not paid by Hamas, the NCAG will use that $400 million fund to pay back the contractors, the source says, adding that background checks will also be conducted to ensure that the contractors are not tied to terrorism.

In addition, the $400 million will be used to provide severance packages for Hamas civil servants who do not end up being hired by the NCAG during the transfer of governance that is expected to take place, the Arab diplomat says.

The diplomat notes that the severance packages are a legal requirement and necessary for limiting poverty in Gaza.