US State Department watchdog investigates Gaza Humanitarian Foundation over $30m aid grant - report

The US State Department's Office of Inspector General is investigating the now-defunct Gaza Humanitarian Foundation and how it spent a 30 million dollar grant announced by the department last June, according to three people familiar with the inquiry.

First reported by the Financial Times, the probe is focusing on what money was spent and how, including which budget it came from and how it was distributed. Investigators are also examining the pricing of aid and services GHF purchased with state department funds.

The GHF was established last year with support from the Trump administration and the Israeli government to replace the UN's aid effort in Gaza. The US was the only country to publicly acknowledge funding the organization. UN officials described it as a "fig leaf" for Israeli war aims, while humanitarian groups refused to cooperate with it.

Two people familiar with GHF's operations said the state department transferred the money to the foundation, which used it to buy food and logistics through contractors. A GHF spokesperson said the organization was unaware of an OIG inquiry and that food was largely procured locally at reasonable prices. One person said GHF paid significantly more for food than the US had previously paid in the region.

An internal GHF review found transport costs were particularly high due to the dangers of operating in an active war zone. The State Department OIG declined to confirm or deny the existence of an investigation.