Boston Consulting Group terminates contract with controversial US-backed Gaza aid organization

CNN

2 days ago

A US consulting firm has canceled its contract with the controversial US and Israel-backed aid organization set up to distribute food and humanitarian supplies as famine conditions worsen in war-ravaged Gaza, a spokesperson for Boston Consulting Group told CNN.
'Unapproved follow-on work relating to Gaza lacked buy-in from multilateral stakeholders and was stopped on May 30. BCG has not and will not be paid for any of this work,' the spokesperson said.
The BCG partner who was in charge of the work with the Gaza Humanitarian Foundation has been put on administrative leave while a formal review of the firm's involvement is carried out, the spokesperson added.
The news comes as nearly 30 Palestinians were killed and dozens were injured on Tuesday after coming under fire for a third consecutive day near an aid distribution site operated by the organization in southern Gaza, according to the Palestinian Ministry of Health and Nasser hospital.
The Israeli military said its forces opened fire multiple times after identifying 'several suspects moving toward them, deviating from the designated access routes.'
'The troops carried out warning fire, and after the suspects failed to retreat, additional shots were directed near a few individual suspects who advanced toward the troops,' the Israel Defense Forces (IDF) said in a statement, which also said they are looking into reports of casualties.
The deadly incidents have exacerbated concerns about the organization, which is meant to run a new, tightly controlled, mechanism for aid deliveries into Gaza, but has been criticized by the United Nations and others, who warn the way it operates is endangering civilians and is likely to further displace Palestinians.
The GHF's plan for delivering aid was approved by Israel and the US, which have said it is designed to prevent Hamas from 'stealing' aid.
Asked about reports of BCG severing ties with the organization, a senior Trump administration official suggested without evidence that it was tied to media coverage.
BCG's decision is a further blow to the organization and comes a week after the group's Executive Director Jake Wood quit.
The consulting firm began working with GHF in October 2024 to 'help establish an aid organization intended to operate alongside multilateral efforts to deliver humanitarian support to Gaza,' the spokesperson said.
Despite the break with the outside firm, the foundation said that it would continue its work 'full-steam ahead.' GHF has delivered more than 7 million meals in eight days, said John Acree, GHF's interim director.
'In an operating environment as complex and volatile as Gaza, that kind of safe, direct, and large-scale aid delivery is unprecedented. We remain focused on one thing: getting food to the people who need it most. And right now, we are the only organization doing that at scale, with consistency and safety,' Acree added.
CNN's Oren Liebermann and Jennifer Hansler contributed reporting.