Ottawa loses bid to quash Israel advocates' lawsuit calling for halt to UNRWA funding

The symbol of the United Nations is displayed outside the Secretariat Building, Feb. 28, 2022, at United Nations Headquarters. (AP Photo/John Minchillo, File)

OTTAWA -

The Federal Court has denied Ottawa's bid to quash a case in which advocates for Israel are asking for a reversal of Canada's temporary freeze on the main United Nations agency supporting Palestinians.

In April, the Centre for Israel and Jewish Affairs joined Canadians whose relatives were killed in the Hamas attack last October in asking Ottawa to stop funding UNRWA.

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They cited Israel's argument that UNRWA has collaborated with Hamas in recent years, which the agency rejects, while claiming that Canadian funds are illegally benefiting a terrorist organization.

A judge ruled Wednesday that those filing the case and the questions they raised fit within the jurisdiction of the Federal Court, while not weighing in on the evidence they presented.

Ottawa had unsuccessfully argued that the case fell outside the scope of the Federal Court's role of adjudicating the laws surrounding the use of Canada's aid dollars.

The case will therefore proceed to the next step before Federal Court.

Canada suspended aid to the agency, whose full name is the United Nations Relief and Works Agency for Palestine Refugees in the Near East, in January. The decision followed UNRWA declaring it was investigating whether some of its staff took part in the last October's attack by Hamas.

The Liberals restored the funding in March, citing the dire humanitarian situation in the Gaza Strip and the suspension of all staff under investigation.

In August, the United Nations announced the firing of nine of the 19 UNRWA staff members it investigated, saying they "may have been involved" in the attacks.

The lawsuit cited media reports that rely on Israeli government sources and reports alleging vast ties between UNRWA staff members and Hamas, which Canada deems a terrorist group.

The case argues Canada could have found other ways to fund humanitarian relief for Palestinians, despite statements from cabinet ministers that UNRWA is the only agency that can help dent widespread hunger and disease in Gaza.

The complainants say that UNRWA falls short of Canada's law on foreign aid, which requires that aid be provided "in a manner that is consistent with Canadian values." A judge ruled Wednesday that this clause can be adjudicated by Federal Court.

Ottawa had argued that the court was being asked to reverse a decision that falls within cabinet's duty to make political decisions.

This report by The Canadian Press was first published Sept. 12, 2024.