Swedish Television (SVT) reported that the Swedish International Development Cooperation Agency (SIDA) has paused its payments to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).
The Swedish government pledged to fund UNRWA with 400 million Swedish kronor ($38.4 million) this year, but 31 million kronor is currently withheld, SVT reported.
It said the withheld funding will instead go to organizations such as the World Food Programme and the International Committee of the Red Cross.
The UNRWA said last Friday that it had decided to "immediately terminate the contracts" of the staff members involved and to "launch an investigation."
"We await the result of the ongoing investigation and will not pay out any money until it is ready," Johan Tjerneng, a press officer at SIDA, told SVT.
Countries including the United States, the United Kingdom, Canada, Germany and Australia have previously said that they will temporarily suspend funding for the UNRWA.
On Sunday, the Cairo-based pan-Arab bloc Arab League criticized the recent Western suspension of funding for the UNRWA, saying that it was "irresponsible" as it would further impact the already vulnerable Palestinians.
The UNRWA, established as a subsidiary organ of the UN General Assembly in 1949, serves to support the relief and human development of Palestinian refugees and is entrusted with the mission of providing humanitarian assistance and protection to registered Palestinian refugees in the agency's operational areas until a just and lasting solution to their plight is achieved.
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