Consulting firm has stopped work advising Gaza Humanitarian Foundation and placed a partner on leave
Even before deadly shootings near a Gaza humanitarian aid site this week, Boston Consulting Group had misgivings about its involvement in the American-Israeli project, according to people familiar with the firm’s work.
When BCG signed on to the pro-bono Gaza aid effort last year, it had expected to be supporting a broad, internationally recognized coalition, the people said. The dearth of support from international aid groups helped trigger the firm’s decision to end its contract.
The consulting firm said that, as of last week, it had stopped work on an American-Israeli initiative that has been marked by violence and disorder in recent days. On Tuesday, the firm said it placed a senior partner on administrative leave and opened a formal review into its Gaza work.
The complexities of doing business in the Middle East haven’t deterred American consulting firms from embracing the region. Drawn by the lure of ambitious projects—and, at times, lucrative fees—firms have spent years advising governments and companies there. They also do pro-bono work, in part to raise their profile in the region, and to lend their expertise to issues.
BCG was selected in October to provide pro-bono support to help establish an organization that would work with other groups to deliver humanitarian support to Gaza. That effort led to the formation of the Gaza Humanitarian Foundation, the troubled U.S. and Israeli initiative to deliver aid directly to Palestinians. International aid groups have refused to cooperate with GHF, and it has been criticized for endangering civilians.
“BCG has not and will not be paid for any of this work,” a spokesperson at the firm said.
The new humanitarian assistance plan has been touted by Israeli Prime Minister Benjamin Netanyahu as a solution for stopping Hamas from taking control of aid, something the U.S.-designated terrorist group denies that it does. According to the plan, food is supposed to be handed out directly to Gazan families through designated distribution centers with the help of private U.S. security firms.
The plan effectively overhauls the way aid entered Gaza since the start of the war, though it has faced criticism from European states and aid groups. The United Nations says the system contradicts its principles of neutrality and puts people at risk.
BCG’s involvement in Gaza is the latest example of major consulting firms facing increased scrutiny for their work in the Middle East. Executives at BCG, McKinsey and other consulting firms appeared before a Senate subcommittee last year to discuss their work in Saudi Arabia.
Write to Chip Cutter at chip.cutter@wsj.comat chip.cutter@wsj.com