Why BCG’s involvement in Gaza marks an all-time low for consulting firms

Human rights groups say the Gaza Humanitarian Foundation violates international law by politicizing and militarizing aid. (AFP file)
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Updated 13 July 2025
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Why BCG’s involvement in Gaza marks an all-time low for consulting firms

  • FT investigation examined Boston Consulting Group’s role in Gaza aid planning, including plans for Palestinian relocation
  • BCG has disavowed the work and fired two senior partners — but the scandal sheds light on the wider industry’s irresponsibility

LONDON: A Financial Times investigation, published on July 4, found that a consulting firm connected to the Gaza Humanitarian Foundation secured a multimillion-dollar contract to help shape the initiative and a proposal for the possible “relocation” of Palestinians from the Gaza Strip.

The Boston Consulting Group was found to have played a central role in designing and managing the US- and Israeli-backed project, which aimed to replace the UN as the primary coordinator of humanitarian aid in Gaza.

Amid growing criticism, BCG denied any ongoing involvement in the Gaza Humanitarian Foundation. In a June 7 statement, the firm said it initially provided “pro bono support” in October 2024 to help launch “an aid organization intended to operate alongside other relief efforts.”




BCG has faced heavy scrutiny for its role in Gaza’s postwar reconstruction, mainly through its work with the controversial Gaza Humanitarian Foundation. (AFP file)

The firm said two senior US-based partners who led the initiative “failed to disclose the full nature of the work” and later engaged in “unauthorized” activities outside the firm’s oversight.

“Their actions reflected a serious failure of judgment and adherence to our standards,” the firm said. “We are shocked and outraged by the actions of these two partners. They have been exited from the firm.

“BCG disavows the work they undertook. It has been stopped, and BCG has not and will not be paid for any of their work.”

The company emphasized it is strengthening internal controls to prevent future breaches. “We deeply regret that in this situation we did not live up to our standards,” the statement said. “We are committed to accountability for our failures and humility in how we move forward.”

FAST FACTS:

• A Financial Times investigation examined BCG’s role in Gaza aid planning, including controversial proposals for Palestinian relocation.

• BCG disavowed the work and fired two senior partners, but documents suggest deeper involvement and lapses in internal oversight.

• The scandal underscores wider concerns about consulting firms’ ethics, with similar controversies involving PwC, KPMG, EY and McKinsey.

Following the FT story, BCG issued another statement on July 6 disputing aspects of the reporting. “Recent media reporting has misrepresented BCG’s role in post-war Gaza reconstruction,” the firm said.

BCG reiterated that the initiative was not an official company project and was carried out in secret. “Two former partners initiated this work, even though the lead partner was categorically told not to,” the statement read.

“This work was not a BCG project. It was orchestrated and run secretly outside any BCG scope or approvals. We fully disavow this work. BCG was not paid for any of this work.”




Buildings that were destroyed during the Israeli ground and air operations stand in northern of Gaza Strip as seen from southern Israel on July 10, 2025. (AP Photo)

However, individuals familiar with “Aurora” told the FT that BCG’s involvement ran deeper. The report revealed that BCG created a financial model for Gaza’s postwar reconstruction that included scenarios for mass displacement.

This revelation intensified scrutiny of the consulting industry’s ethical boundaries.

“Consulting companies… are held to a higher standard of professionalism and ethics than other lines of work,” Dr. Abdel Aziz Aluwaisheg, the Gulf Cooperation Council assistant secretary-general for political affairs and negotiation, wrote in an April opinion piece for Arab News.

He warned that without corrective action, major firms risk alienating clients.




Displaced Palestinians carrying relief supplies from the Gaza Humanitarian Foundation (GHF) return from aid distribution centers in Rafah to their tents in the southern Gaza Strip on May 29, 2025. (AFP)

ndeed, in recent years, top consulting firms like McKinsey, PwC, KPMG, and EY have faced growing scrutiny for putting profit over ethics, with scandals revealing conduct lapses worldwide.

McKinsey, for instance, faced heavy backlash for its role in the US opioid crisis. The firm was accused of helping Purdue Pharma and other manufacturers to aggressively market addictive painkillers, including OxyContin, The New York Times reported.

Aluwaisheg noted in his op-ed that some of these ethical lapses “are quite common throughout the consulting business.”

However, he added, “big firms are more likely to commit them,” citing sprawling operations that limit senior management oversight.

The industry’s core business model may be the issue: consulting firms adopted law firms’ high-fee model for expert advice — without their legal liability.

Despite this, demand for consulting services remains high. Aluwaisheg believes governments and businesses will continue to need outside expertise.




People walk by PricewaterhouseCoopers (PwC) New York headquarters. (AFP)

Still, accountability concerns have prompted some governments to take action. In February, Saudi Arabia’s Public Investment Fund banned PwC from taking on new advisory and consulting contracts for one year.

Some media outlets reported that the decision was related to an ethical violation tied to an alleged recruitment of a senior-level employee from the client’s side. The suspension did not impact PwC’s auditing work.

These events highlight ongoing concerns over consulting firms’ roles in controversial actions. In April 2024, KPMG’s Dutch arm was fined $25 million after over 500 staff cheated on internal training exams, Reuters reported.

Yet the BCG case may represent a new low for the industry.

The Gaza Humanitarian Foundation’s model bypassed traditional organizations like the UN, restricted aid distribution to limited sites under Israeli oversight and relied on private security contractors. This move has had deadly consequences.

According to Gaza’s health authority, at least 740 Palestinians have been killed and almost 4,900 injured while attempting to reach aid centers, drawing condemnation from humanitarian organizations and UN officials.




Displaced Palestinians look around on alert in the wake of gunfire shots as they receive food packages from a US-backed foundation pledging to distribute humanitarian aid in western Rafah in the southern Gaza Strip on May 27, 2025. (AFP)

UN aid chief Tom Fletcher called the initiative a “fig leaf for further violence and displacement” of Palestinians in the war-torn enclave.

In a July 10 letter to the FT editor, BCG’s CEO Christoph Schweizer pushed back against the allegations that his firm endorsed or profited from projects related to Gaza.

“None of that is true,” Schweizer wrote, adding that “a few people from BCG were involved in such work. They never should have been.”

Adding another layer to the controversy, FT reported on July 6 that staff from the Tony Blair Institute were also implicated in postwar planning that included scenarios for mass Palestinian displacement — despite being prominent advocates for peace in the Middle East.




Christoph Schweizer, CEO of Boston Consulting Group. (Supplied)

The plan, seen by the FT, imagined Gaza as a regional economic hub, complete with a “Trump Riviera” and “Elon Musk Smart Manufacturing Zone,” based on financial models developed by BCG.

While the Tony Blair Institute for Global Change denied authoring “The Great Trust” blueprint, it acknowledged two staff joined Gaza planning calls and chats. It also denied backing population relocation.

Arab News approached the TBI for comment, but did not receive a response by the time of publication.

Nevertheless, its involvement has triggered additional concerns about the ethics of postwar reconstruction planning and the role of consulting firms in shaping policies with far-reaching humanitarian consequences.
 

 


Gaza civil defense says Israeli forces kill 28 people

Updated 26 July 2025
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Gaza civil defense says Israeli forces kill 28 people

  • The toll includes at least eight people killed by Israeli fire while waiting to collect humanitarian aid, Bassal said

GAZA CITY, Palestinian Territories: Gaza’s civil defense agency said Israeli military operations killed at least 23 people on Friday across the Palestinian territory, with another five killed in an overnight air strike.
Civil defense spokesman Mahmud Bassal told AFP that five people were killed in a strike on Gaza City that hit a school building sheltering Palestinians displaced by the war, now in its 22nd month.
Bassal said five others were killed when an Israeli strike hit a tent used by displaced Palestinians also in Gaza City, in the territory’s north.
The Israeli military said that strike was carried out late Thursday, targeting “a key terrorist in the Islamic Jihad terrorist organization,” a militant group that has fought alongside Hamas in Gaza.
According to the civil defense agency, more than a dozen other Palestinians were killed in several strikes in Gaza’s north, center and south on Friday.
The toll includes at least eight people killed by Israeli fire while waiting to collect humanitarian aid, Bassal said.
Contacted by AFP, the Israeli military did not comment on the agency’s reports.
Media restrictions in Gaza and difficulties in accessing many areas mean AFP is unable to independently verify tolls and details provided by the civil defense agency and other parties.
Israel launched its military campaign in Gaza after a deadly attack by Palestinian militant group Hamas on October 7, 2023.
The Israeli campaign has killed 59,676 Palestinians, mostly civilians, according to the health ministry in the Hamas-run territory.
Hamas’s October 2023 attack resulted in the deaths of 1,219 people, most of them civilians, according to an AFP tally based on official figures.

 


Tunisians protest aginst President Saied, call country an ‘open-air prison’

Updated 25 July 2025
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Tunisians protest aginst President Saied, call country an ‘open-air prison’

  • Under the slogan “The Republic is a large prison,” protesters marched along Habib Bourguiba Avenue
  • They chanted slogans such as “no fear, no terror ... streets belong to the people” and “The people want the fall of the regime”

TUNIS: Hundreds of Tunisian activists protested in the capital on Friday against President Kais Saied, denouncing his rule as an “authoritarian regime” that has turned the country into an “open-air prison”.

Under the slogan “The Republic is a large prison,” protesters marched along Habib Bourguiba Avenue. They demanded the release of jailed opposition leaders, journalists, and activists.

The protest marked the fourth anniversary of Saied’s power grab. In 2021, he dissolved the elected parliament and started ruling by decree, a move the opposition called a coup.

They chanted slogans such as “no fear, no terror ... streets belong to the people” and “The people want the fall of the regime”.

The protesters said Tunisia under Saied has descended into authoritarianism, with mass arrests and politically motivated trials silencing dissent.

“Our first aim is to battle against tyranny to restore the democracy and to demand the release of the political detainees,” Monia Ibrahim, wife of imprisoned politician Abdelhamid Jelassi, told Reuters.

In 2022, Saied dissolved the independent Supreme Judicial Council and sacked dozens of judges, a move the opposition said was aimed to cement one-man rule.

Saied said he does not interfere in the judiciary, but no one is above accountability, regardless of their name or position.

Most prominent opposition leaders are in prison, including Rached Ghannouchi, head of the Islamist Ennahda party, and Abir Moussi, leader of the Free Constitutional Party.

They are among dozens of politicians, lawyers, and journalists facing lengthy prison sentences under anti-terrorism and conspiracy laws.

Others have fled the country, seeking asylum in Western countries.

In 2023, Saied said the politicians were “traitors and terrorists” and that judges who would acquit them were their accomplices.

“Prisons are crowded with Saied’s opponents, activists, journalists,” said Saib Souab, son of Ahmed Souab, the imprisoned lawyer Ahmed Souab who is a critical voice of Saied.

“Tunisia has turned into an open-air prison. ... Even those not behind bars live in a state of temporary freedom, constantly at risk of arrest for any reason.,” he added.


Israel says intercepted missile fired from Yemen

Updated 25 July 2025
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Israel says intercepted missile fired from Yemen

  • A missile launched from Yemen was intercepted by the air force, said a military statement

JERUSALEM: The Israeli military said it intercepted on Friday a missile launched from Yemen toward its territory, after reporting that sirens sounded in several areas.

“Following the sirens that sounded a short while ago in several areas in Israel, a missile launched from Yemen was intercepted” by the air force, the military said in a statement.


Israel strike kills one in south Lebanon

Updated 25 July 2025
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Israel strike kills one in south Lebanon

  • Health ministry said an Israeli strike on a vehicle in Baraachit resulted in one dead
  • Israel’s military said it had “eliminated the personnel officer for Hezbollah’s Bint Jbeil sector“

BEIRUT: An Israeli strike on southern Lebanon on Friday killed one person, authorities said, with the Israeli military identifying the slain man as an official with militant group Hezbollah.

Israel has repeatedly struck Lebanon despite a November ceasefire that sought to end over a year of hostilities with Iran-backed militant group Hezbollah.

The Lebanese health ministry said Friday that “an Israeli strike on a vehicle in the village of Baraachit resulted in one dead.”

The Israeli military said it had “eliminated the personnel officer for Hezbollah’s Bint Jbeil sector,” near the Israeli border.

The man “was involved in efforts to rehabilitate the terrorist organization in the Bint Jbeil area of southern Lebanon and operated to recruit terrorists during the war,” a military statement said.

On Thursday, Israel said it had struck Hezbollah weapons depots and a rocket launcher, and “eliminated a Hezbollah terrorist” in Lebanon’s south.

Under the November truce, Hezbollah was to withdraw its fighters north of the Litani river, about 30 kilometers (20 miles) from the Israeli border, leaving Lebanon’s army and United Nations peacekeepers as the only armed parties in the region.

Israel was to withdraw its troops from Lebanon but has kept them in five areas it deems strategic.


Paramilitary attacks kill 30 in Sudan village

Updated 25 July 2025
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Paramilitary attacks kill 30 in Sudan village

  • The group added that the RSF also stormed major medical facilities in the city, expelling patients and using hospitals to treat wounded paramilitary fighters

PORT SUDAN: Sudan’s paramilitary Rapid Support Forces killed at least 30 civilians in a two-day assault on a village in the country’s western region of Kordofan, a war monitor said Friday.
In recent months, as the war between the paramilitary troops and the regular army roared into its third year, Kordofan has emerged as a key battlefront, with the paramilitaries seeking to consolidate their control in the west after losing the capital Khartoum.
The Emergency Lawyers, a group that has documented atrocities throughout the war, said paramilitary fighters attacked the village of Brima Rasheed on Wednesday and Thursday, killing three civilians in the first raid and 27 others the following day.
It added in a statement that the dead included women and children.

FASTFACTS

• In recent months, as the war between the paramilitary troops and the regular army roared into its third year, Kordofan has emerged as a key battlefront.

• The Emergency Lawyers, a group that has documented atrocities throughout the war, said paramilitary fighters attacked the village of Brima Rasheed on Wednesday and Thursday.

The Emergency Lawyers said the paramilitary troops’ “indiscriminate killing” of civilians constituted “a serious violation” of international law.
Casualty figures are nearly impossible to independently verify, with most health facilities shut down and large swaths of Sudan inaccessible to journalists.
The monitor said sporadic clashes were also reported between paramilitary fighters and armed civilians in Brima Rasheed village, near the RSF-held city of En Nahud in West Kordofan state — a key transit point once used by the army to send reinforcements further west.
The Emergency Lawyers said that in recent days violence has spread across En Nahud, with reports of dozens of civilians killed and residential areas attacked.
The group added that the RSF also stormed major medical facilities in the city, expelling patients and using hospitals to treat wounded paramilitary fighters.
Those who resisted were beaten or detained, the Emergency Lawyers said.
Meanwhile, the UN said Friday that more than 1.3 million people who fled the fighting in Sudan have headed home, pleading for greater international aid to help returnees rebuild shattered lives.
Over a million internally displaced people have returned to their homes in recent months, UN agencies said.
A further 320,000 refugees have crossed back into Sudan this year, mainly from neighboring Egypt and South Sudan.
While fighting has subsided in the “pockets of relative safety” to where people are beginning to return, the situation remains highly precarious, the UN said.
In a joint statement, the UN’s IOM migration agency, UNHCR refugee agency and UNDP development agency called for an urgent increase in financial support to fund the recovery as people begin to return.
It said humanitarian operations were “massively underfunded.”
Sudan has 10 million IDPs, including 7.7 million forced from their homes by the current conflict, they said.
Over 4 million have sought refuge in neighboring countries.
Sudan is “the largest humanitarian catastrophe facing our world and also the least remembered,” the IOM’s regional director Othman Belbeisi, speaking from Port Sudan, told a media briefing in Geneva.
He said most of the returns (71 percent) had been to Al-Jazira state, while 8 percent had been to Khartoum.
Other returnees were mostly heading for Sennar state. Both Al-Jazira and Sennar are located southeast of Khartoum.
With the army controlling Sudan’s center, north and east, and the RSF holding nearly all of the western Darfur region, Kordofan in the south has become the main battleground of the war in recent weeks.
“We expect 2.1 million to return to Khartoum by the end of this year but this will depend on many factors, especially the security situation and the ability to restore services in a timely manner,” Belbeisi said.
He said the “vicious, horrifying civil war continues to take lives with impunity,” imploring the warring factions to put down their guns.
“The war has unleashed hell for millions and millions of ordinary people,” he said.
“Sudan is a living nightmare. The violence needs to stop.”