Hamas is using a secret stash of cash to continue paying salaries to officials in its government – despite the ongoing war in Gaza. Reports suggest that the militia has forked out US$7million (£5.3million) to cover the wages of 30,000 civil servants since Israel launched its military campaign.
Employees – from police officers to tax officials – are sent encrypted messages on their phones, instructing them to go to a certain location at a specific time to “meet a friend for tea”. A person then hands them money in an envelope at the meeting place, before quickly disappearing. Israel has dismantled much of Hamas’ administrative and financial infrastructure, including killing Ismail Barhoum – the militia’s head of finance. Yet despite the numerous difficulties, the organisation continues to bankroll its operations within Gaza.
One senior Hamas employee told the BBC that the group had stockpiled approximately US$700million in cash and hundreds of millions of shekels in underground tunnels prior to the deadly October 7, 2023 attack. The militia has several sources of income to fund itself and its administration.
Historically they have imposed high import duties and taxes on the Gaza population, as well as receiving millions of dollars of support from Qatar.
Iran has funded Hamas’ military wing the Qassam Brigades, while other Islamist groups have also contributed funds. A senior official from the banned Egypt-based Muslim Brotherhood claimed their organisation sent around 10% of its budget to Hamas.
The Palestinian militia continues to impose taxes on traders and has sold large quantities of cigarettes at prices up to 100 times their original cost.
Before the war, a box of 20 cigarettes cost US$5 – that has now skyrocketed to more than US$170.
Hamas has also ensured its members and their families receive regular food parcels, while other residents fight to avoid starvation.
This has fuelled deep resentment among ordinary Palestinians, who have accused the militia of discriminating against the wider population.
Nisreen Khaled, a widow of three children, told the BBC: “When the hunger worsened, my children were crying not only from pain but also from watching our Hamas-affiliated neighbours receive food parcels and sacks of flour.
“Are they not the reason for our suffering? Why didn’t they secure food, water, and medicine before launching their 7 October adventure?”