The chief U.S. oversight body for foreign aid is conducting multiple investigations into what it says is systemic Hamas theft of humanitarian assistance in Gaza — findings that directly undercut a recently leaked internal USAID report claiming there is “no evidence” of such diversion.

According to a memo obtained by the Washington Free Beacon and confirmed by senior U.S. officials and congressional staff, the USAID inspector general’s office has collected evidence showing Hamas has commandeered U.N. aid trucks, embedded operatives inside U.N. facilities, and ensured that shipments are delivered directly to its officials. The memo describes “credible allegations of Hamas interference, diversion, and theft of humanitarian aid in Gaza” and outlines ongoing audits into fraud, smuggling, and terrorist infiltration of U.S.-funded programs.

The findings stand in direct contradiction to the leaked USAID report — compiled by career staff before the agency’s shutdown in June — which relied heavily on U.N. data and found no systemic diversion. Unlike that internal report, the inspector general’s probes draw on whistleblowers, aid workers, and other on-the-ground sources who, officials say, fear retaliation if they report concerns through official channels.

One former inspector general investigator told the Free Beacon he had “directly observed” multiple instances in which aid meant for civilians was diverted to Hamas.

The watchdog’s investigations include probing USAID’s failure to prevent terrorist-linked individuals from working with its funded partners; reviewing whether proper safeguards existed for cash aid to NGOs in Gaza and the West Bank; examining attempts to stop Hamas-linked UNRWA staff from moving to other U.S.-funded agencies.

In an April investigative summary, the inspector general said it found links between three current or former UNRWA employees and the October 7 terror attacks, and between 14 others and Hamas. A U.N. report on the matter redacted all names, making verification impossible.

The office is also reviewing evidence that Hamas has attacked aid delivery sites — including firing mortars, grenades, and live rounds at civilians seeking food.

A senior State Department official told the Free Beacon that intelligence from the probes confirms “a significant portion” of U.N. aid in Gaza is “diverted, looted, stolen, or ‘self-distributed’” by Hamas. The official said the chaos and violence at aid sites is “shockingly” underreported because it conflicts with “the international aid complex narrative.”

On Capitol Hill, congressional staffers briefed on the findings are reviewing initial evidence. Israeli intelligence estimates that at least 12 percent of U.N. employees in Gaza belong to Hamas or other terrorist groups. Aid workers in Gaza say U.N. truck drivers routinely coordinate with Hamas, handing over portions of shipments in exchange for a cut.

“Hamas controls everything in Gaza,” said Mohammad, a 35-year-old former Gaza resident now in Cairo. “If you’re not Hamas, you can’t get anything.”

The inspector general’s office says it will continue working with the Justice Department to hold accountable any individuals or organizations involved in diverting U.S.-funded humanitarian aid.

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