By Chip Cutter

Boston Consulting Group said it fired two North American partners involved in an Israeli-American effort to distribute humanitarian aid in Gaza.

The consulting giant terminated the two unnamed partners after an internal investigation found they didn't disclose details about the pro-bono project during a client vetting process.

"In violation of BCG's policies and protocols, the partners carried out subsequent unauthorized work," the firm said in a written statement.

When BCG signed on to the Gaza aid project in October, it had expected to be supporting a broad, internationally recognized coalition, people familiar with the work told The Wall Street Journal. The effort led to the formation of the Gaza Humanitarian Foundation, a troubled U.S. and Israeli initiative to deliver aid directly to Palestinians.

The aid-distribution effort has been marked by violence and disorder. Deadly shootings broke out near a Gaza humanitarian aid site this week, and international aid groups have refused to cooperate with the group.

As of last week, BCG stopped work on the initiative. On Tuesday, the firm said it had placed a senior partner on administrative leave and opened a formal review into its Gaza work. The investigation, which BCG said was supported by external counsel, found that the partners didn't share all relevant details about the project.

"The two partners failed to disclose the full nature of the work during the client acceptance process," the firm said in a written statement. "We deeply regret that in this situation we did not live up to our standards."

The investigation is continuing, and BCG said it is committed to taking steps to address issues it identifies.

Israeli Prime Minister Benjamin Netanyahu has touted the new humanitarian-assistance plan 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.

The controversy over BCG's involvement in Gaza is only the latest example of U.S. consulting firms facing challenges 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. But, despite the complexities, consulting firms have largely embraced doing business in the region, drawn by ambitious projects and, at times, lofty fees for their work.

Write to Chip Cutter at chip.cutter@wsj.com

(END) Dow Jones Newswires

June 05, 2025 21:10 ET (01:10 GMT)

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