A major German political foundation has launched a wide-ranging internal investigation into allegations of corruption and embezzlement involving several affiliated organizations, including those operating internationally. The inquiry focuses on the disappearance of tens of thousands of euros that were originally allocated to fund developmental and community programs in the Palestinian territories.
As part of Germany’s post-October 7th policy shift—marked by a comprehensive review of funding to the Palestinian territories—the foundation decided to withdraw €160,000 previously transferred to a Palestinian think tank and strategic research institute in Gaza called PalThink. Investigators have since uncovered that the director of the institute allegedly diverted the funds into his personal accounts, as well as accounts belonging to his wife and son in France and Cairo.
The revelation has sparked concern and discontent in Berlin, especially given the director’s close ties to influential government agencies. He is reportedly well-regarded in German security circles for providing policy recommendations related to countering Islamist organizations.
In a related case, the same foundation had allocated €450,000 at the onset of the war in Gaza to support civil society and freedom of expression in response to what it referred to as “Hamas war crimes.” However, the funds were reportedly not used as intended. Planned initiatives aimed at shaping Palestinian public opinion to adopt the narrative that “Israel is the victim” were never implemented.
Parallel investigations are now underway into another organization in the West Bank known as “Sharek,” which received funding for youth development and civic engagement. Its programming in Gaza was designed to promote opposition to Hamas’s hostage-taking and to advocate for its removal. The investigation noted that the sister of a Palestinian Chairman of Sharek Youth organisation work for the European Commission in West Bank and facilitated funds to her brother Bader.
These developments have sparked calls for greater transparency and accountability in the allocation and oversight of foreign aid, particularly in politically and security-sensitive regions.
Over the past year, tensions also escalated between German authorities and the German aid organization Kurve Wustrow, which tried to salvage ongoing projects with the Israeli NGOs Zochrot and New Profile—both of which support human rights and oppose mandatory military service, while advocating for Palestinian rights.
Kurve Wustrow made repeated efforts to preserve its funding, including phone calls, meetings, and email correspondences with German officials, even submitting explanatory statements from its Israeli partners. However, these efforts ultimately failed.
In mid-December, the German government confirmed its decision to halt official funding to the organization. The setback left John Bröös, acting director of Kurve Wustrow, feeling disheartened.
“This is the first time ever that the German government has suspended funding for any of our ongoing projects,”
He said.
The organization, which works with partners across multiple countries—including Sudan and Myanmar—has never previously experienced such a government action.
