Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Boston Consulting Group approached the UN agency for Palestinian refugees, UNRWA, with an offer of pro bono work for its humanitarian effort in Gaza shortly after Israel’s military campaign began in late 2023. However, this offer never materialized, as reported by sources familiar with the matter and correspondence seen by the Financial Times.
The firm’s involvement in Gaza took a controversial turn when it was revealed that BCG played a role in supporting the Gaza Humanitarian Foundation (GHF), a rival aid scheme backed by Israel and the US. The GHF initiative has been widely condemned for sidelining the existing food distribution system operated by UNRWA and other organizations in Gaza. This new program, concentrated in southern Gaza and staffed by US private security contractors, has forced Gazans to undertake dangerous journeys to access food, resulting in civilian casualties at the hands of Israeli forces.
Initially, BCG had proposed a project for UNRWA, led by consultants specializing in healthcare or based in the Middle East. The pitch deck presented to agency officials in December 2023 highlighted BCG’s experience in supporting disaster and humanitarian crisis responses. However, the firm’s involvement with GHF stemmed from its US defense practice, with Phil Reilly, a former CIA operative, leading security for GHF.
BCG has since distanced itself from its association with GHF, stating that the project evolved from a feasibility study conducted on a pro bono basis. The firm has terminated its involvement with the project and dismissed two partners from the US defense practice.
Despite the fallout from the GHF project, BCG continued to express interest in working with UNRWA until January 2024. The firm proposed developing a new fundraising strategy for UNRWA and updating the agency’s humanitarian response plan. However, the two parties did not reach a consensus on a project.
UNRWA acknowledged BCG’s initial interest in supporting the agency but noted that concrete offers were lacking. BCG cited the suspension of funding to UNRWA by the US, EU, and other governments as a reason for discontinuing collaboration with the agency.
The situation in Gaza has been further complicated by accusations against UNRWA staff by Israeli officials, leading to funding suspensions by several nations. Despite reinstatements from the EU and UK, the US has yet to resume funding for UNRWA.
In conclusion, the dynamics of aid and humanitarian efforts in Gaza remain complex, with the involvement of external organizations like BCG and the challenges faced by longstanding agencies like UNRWA. The need for coordinated and ethical assistance in conflict zones like Gaza continues to be a pressing issue.
