Despite the ongoing war and the near-total collapse of its administrative infrastructure, Hamas has maintained a covert system to pay 30,000 civil servants a combined $7 million. This underground cash network has endured nearly two years of intense Israeli bombardment, even after the October 7, 2023, attack that sparked a massive Israeli military response.
Civil servants, including teachers, police officers, and tax officials, report receiving payments every 10 weeks, though only around 20% of their pre-war salaries. Many say they get approximately $300 per cycle a sum rendered almost meaningless in a market where a kilogram of flour can cost up to $80.
With Gaza’s banking system in ruins, Hamas relies on secretive, high-risk distributions. Workers often receive encrypted messages directing them to meet a “friend for tea” at specific locations. There, a courier discreetly hands them a sealed envelope containing their wages and quickly disappears. These exchanges have become targets for Israeli strikes, making each collection attempt a potentially fatal risk.
The funding behind these payments remains murky. One senior Hamas insider told the BBC the group stockpiled around $700 million in cash and shekels in tunnels before the October 7 attack. These reserves were reportedly overseen by top leaders Yahya and Mohammed Sinwar, both of whom have since been killed.
Hamas’s income sources have traditionally included taxes on Gaza residents, support from Qatar and Iran, and levies on goods like cigarettes now sold for over $170 a pack. The group is also accused of prioritizing its supporters when distributing aid. This has sparked outrage among ordinary Gazans, who say they are excluded from food and essentials.
Nisreen Khaled, a widow with three children, questioned Hamas’s decisions: “Why didn’t they secure food, water, and medicine before launching their October 7 adventure?”
As famine looms and resentment grows, Hamas’s shadow financial system may be functioning but it’s also fuelling despair among those it claims to serve.
