the fact that UNRWA has sacked the people accused of this rather than trying to fight their corner in any way is suspicious
It's probably true. It shouldn't be surprising that militants have day jobs, and that some of them work at one of the largest employers (maybe the largest? not sure) in Gaza. It's also a terrible reason to suspend aid. Something like a million and a half people are starving and you're going to suspend to the main organization trying to keep them alive bc a tiny % of its employees are linked to Oct 7.
Obviously it's, quite transparently, a punitive reaction to ICJ ruling, but getting rid of UNRWA is a longstanding Israeli fantasy/goal, closely tied to that other fantasy of ethnically cleansing Gaza and annexing the WB. the Israeli thinking is on crippling UNRWA is that responsibility for Palestinian refugees will be shifted to UNHCR which they see as more likely to fast-track resettlement. They also see UNRWA as tied to restitution claims by descendants of those displaced in 48 and/or 67. Basically, there is this idea that getting rid of UNRWA will magically solve Israel's Palestinian problems. It's more wishful thinking than reality but as I said, it's been an Israeli fantasy for a long time. This attack on UNRWA is slick and coordinated, i.e. the WSJ hit piece by a former IDF officer.