The United Nations Relief and Works Agency (UNRWA), which supports Palestinian refugees, has fired several employees from its 13,000-strong Gaza workforce after Israel provided intelligence to suggest they assisted the Hamas attack.
The revelations have prompted Australia, Canada, Britain, Italy, Germany and France and the UNRWA's lead donor, the United States, to either pull or suspend support to the agency.
Other countries such as Norway and Ireland say they will keep funding UNRWA while it is investigated.
UNRWA provides much-needed health care and education to millions of Palestinians in the region, including the occupied territories of Gaza and the West Bank.
NZ, which has given $1 million annually to the body for almost two decades, is backing a probe into the matter by a UN oversight body.
"New Zealand is taking these allegations very seriously, and will engage with UNRWA and other donors on the issue," a Ministry of Foreign Affairs spokesman said.
"We welcome the United Nations' swift response and expect the allegations to be investigated fully and with urgency, and that findings will be met with an appropriate response.
"We have confidence in the systems and processes of the United Nations to undertake this investigation."
NZ's last contribution to UNRWA was in June 2023, and its next payment is expected by June 30.
"New Zealand remains committed to supporting the critical humanitarian response in Gaza," the spokesman said.
"We continue to call for safe and unimpeded humanitarian access so that affected civilians can receive the lifesaving assistance that is so desperately needed."
