Senior Peace Council Official Denies $400 Million Deal with Hamas, Assures Israel on Security Steps

Nikolay Mladenov, the top Peace Council representative for Gaza, has firmly denied reports of a $400 million financial agreement with Hamas, calling such claims false and stating no such proposal has been discussed or negotiated. He revealed that an international monitoring mechanism to oversee violations has recently become operational, aiming to address any confirmed breaches promptly. This mechanism, part of a broader roadmap, includes the International Verification Committee (IVC) tasked with ensuring all parties meet their commitments before progressing through phases.

The controversy centers on a clause in the 15-point roadmap allowing the new Gaza administration to manage financial obligations up to $400 million. However, the document does not specify that this money would be transferred directly to Hamas. Instead, the National Committee for Gaza Administration (NCAG) is to audit and prioritize legitimate financial commitments to suppliers and contractors over three years. Sources familiar with the matter confirmed Hamas requested coverage for private sector loans totaling $400 million, emphasizing the funds are intended for private entities, not Hamas itself.

Mladenov stressed Hamas will have no access to Peace Council funds, with all contracts subject to verification and donor government audits. The roadmap also addresses the status of Gaza’s public employees during the transition, ensuring severance and pension rights under Palestinian law and allowing police personnel who fail vetting to transfer to civilian roles without losing benefits.

Regarding disarmament, the roadmap links Israel’s phased withdrawal to verified neutralization and storage of heavy weapons by the NCAG, which will eventually hold sole control over Gaza’s arms. Mladenov clarified that Israel will only withdraw from areas after confirmed disarmament, countering Israeli concerns about irreversible steps without verified progress.

Politically, Mladenov noted the roadmap currently frames an agreement between the Peace Council and Hamas, with talks involving Israel ongoing. He outlined three options for Israel: allowing Hamas to rebuild militarily, reoccupying Gaza with significant costs, or accepting the Peace Council’s proposal for full disarmament, civilian governance without Hamas, and an international security presence under U.S. command. Mladenov acknowledged the challenges ahead but urged against creating additional obstacles.