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Arab News
a day ago
- Business
- Arab News
Gaza aid logistics company funded by Chicago private equity firm
WASHINGTON: A Chicago-based private equity firm - controlled by a member of the family that founded American publishing company Rand McNally - has an "economic interest" in the logistics company involved in a controversial new aid distribution operation in Gaza. McNally Capital, founded in 2008 by Ward McNally, helped "support the establishment" of Safe Reach Solutions, a McNally Capital spokesperson told Reuters. SRS is a for-profit company established in Wyoming in November, state incorporation records show. It is in the spotlight for its involvement with the U.S.- and Israeli-backed Gaza Humanitarian Foundation, which last week started distributing aid in the war-torn Palestinian enclave. The foundation paused work on Wednesday after a series of deadly shootings close to its operations and has suffered from the departure of senior personnel. • McNally Capital has economic interest in Safe Reach Solutions • GHF aid distribution halted after deadly shootings near operations • U.N. and aid groups refuse to work with GHF, citing lack of neutrality "McNally Capital has provided administrative advice to SRS and worked in collaboration with multiple parties to enable SRS to carry out its mission," the spokesperson said. "While McNally Capital has an economic interest in SRS, the firm does not actively manage SRS or have a day-to-day operating role." SRS is run by a former CIA official named Phil Reilly, but its ownership has not previously been disclosed. Reuters has not been able to establish who funds the newly created foundation. The spokesperson did not provide details of the scale of the investment in SRS by McNally Capital, which says it has $380 million under management. McNally Capital founder Ward McNally is the great great great grandson of the co-founder of Rand McNally. The McNally family sold the publishing company in 1997. A spokesperson for SRS confirmed it worked with the foundation, also known as GHF, but did not answer specific questions about ownership. GHF, which resumed aid distribution on Thursday, did not respond to a request for comment While Israel and the United States have both said they don't finance the operation, they have pushed the United Nations and international aid groups to work with it, arguing that aid distributed by a long-established U.N. aid network was diverted to Hamas. Hamas has denied that. Israel blocked almost all aid into Gaza for 11 weeks until May 19, and has since only allowed limited deliveries in, mostly managed by the new GHF operation. This week GHF pressed Israel to boost civilian safety beyond the perimeter of its distribution sites after Gazan health officials said at least 27 Palestinians were killed and dozens wounded by Israeli fire near one of the food distribution sites on Tuesday, the third consecutive day of chaos and bloodshed to blight the aid operation. The Israeli military said its forces on Tuesday had opened fire on a group of people they viewed as a threat after they left a designated access route near the distribution center in Rafah. It said it was investigating what had happened. The U.N and most other aid groups have refused to work with GHF because they say it is not neutral and that the distribution model militarizes aid and forces displacement. The SRS spokesperson said in a statement that under Reilly's leadership, "SRS brings together a multidisciplinary team of experts in security, supply chain management, and humanitarian affairs." McNally Capital has investments in defense contracting companies. Among the firms it acquired was Orbis Operations, a firm that specializes in hiring former CIA officers. Orbis did not return calls for comment. Reilly used to work for Orbis.
Reuters
a day ago
- Business
- Reuters
Gaza aid logistics company funded by Chicago private equity firm
WASHINGTON, June 5 (Reuters) - A Chicago-based private equity firm - controlled by a member of the family that founded American publishing company Rand McNally - has an "economic interest" in the logistics company involved in a controversial new aid distribution operation in Gaza. McNally Capital, founded in 2008 by Ward McNally, helped "support the establishment" of Safe Reach Solutions, a McNally Capital spokesperson told Reuters. SRS is a for-profit company established in Wyoming in November, state incorporation records show. It is in the spotlight for its involvement with the U.S.- and Israeli-backed Gaza Humanitarian Foundation, which last week started distributing aid in the war-torn Palestinian enclave. The foundation paused work on Wednesday after a series of deadly shootings close to its operations and has suffered from the departure of senior personnel. "McNally Capital has provided administrative advice to SRS and worked in collaboration with multiple parties to enable SRS to carry out its mission," the spokesperson said. "While McNally Capital has an economic interest in SRS, the firm does not actively manage SRS or have a day-to-day operating role." SRS is run by a former CIA official named Phil Reilly, but its ownership has not previously been disclosed. Reuters has not been able to establish who funds the newly created foundation. The spokesperson did not provide details of the scale of the investment in SRS by McNally Capital, which says it has $380 million under management. McNally Capital founder Ward McNally is the great great great grandson of the co-founder of Rand McNally. The McNally family sold the publishing company in 1997. A spokesperson for SRS confirmed it worked with the foundation, also known as GHF, but did not answer specific questions about ownership. GHF, which resumed aid distribution on Thursday, did not respond to a request for comment While Israel and the United States have both said they don't finance the operation, they have pushed the United Nations and international aid groups to work with it, arguing that aid distributed by a long-established U.N. aid network was diverted to Hamas. Hamas has denied that. Israel blocked almost all aid into Gaza for 11 weeks until May 19, and has since only allowed limited deliveries in, mostly managed by the new GHF operation. This week GHF pressed Israel to boost civilian safety beyond the perimeter of its distribution sites after Gazan health officials said at least 27 Palestinians were killed and dozens wounded by Israeli fire near one of the food distribution sites on Tuesday, the third consecutive day of chaos and bloodshed to blight the aid operation. The Israeli military said its forces on Tuesday had opened fire on a group of people they viewed as a threat after they left a designated access route near the distribution center in Rafah. It said it was investigating what had happened. The U.N and most other aid groups have refused to work with GHF because they say it is not neutral and that the distribution model militarizes aid and forces displacement. The SRS spokesperson said in a statement that under Reilly's leadership, "SRS brings together a multidisciplinary team of experts in security, supply chain management, and humanitarian affairs." McNally Capital has investments in defense contracting companies. Among the firms it acquired was Orbis Operations, a firm that specializes in hiring former CIA officers. Orbis did not return calls for comment. Reilly used to work for Orbis.
Days of Palestine
3 days ago
- General
- Days of Palestine
Swiss Lawyers' Alliance: 'Gaza Humanitarian Foundation' Tied to Intelligence-Gathering Operations Inside Gaza
DaysofPal — The Swiss-based Alliance of Lawyers for Palestine (ASAP) has released sensitive findings concerning the operations of the so-called 'Gaza Humanitarian Foundation,' an Israeli-American initiative involved in aid distribution in the Gaza Strip. According to the Alliance, the foundation is covertly collaborating with a private security company — Safe Reach Solutions — to conduct intelligence-gathering missions under the cover of humanitarian relief. Majed Abu Salama, President of ASAP, told Palestine Online that Safe Reach Solutions employs a large number of retired U.S. military operatives, many with backgrounds in visual intelligence. These personnel, reportedly earning up to $1,000 per day, are carrying out surveillance operations that include drone monitoring and the use of observation rooms installed near aid distribution sites in Rafah. According to Abu Salama, one of the primary objectives of these operations is to analyze the social dynamics of Gaza's population and collect biometric and visual data. This data is allegedly being used to identify suspected members of the Palestinian resistance — all under the guise of preventing them from accessing humanitarian aid. He stressed that the Gaza Humanitarian Foundation does not maintain any field staff in Gaza or Israel. Instead, it outsources all ground operations to the private security contractor, effectively blurring the line between humanitarian work and military intelligence operations. Officially registered in both Switzerland and the United States, the foundation is now under scrutiny. Abu Salama revealed that the legal watchdog TRIAL International has submitted two official complaints to Swiss authorities, calling for a formal investigation into the foundation's operations and its affiliations with military and intelligence actors. In a notable development, David Collier, a Swiss attorney and the only known board member of the Gaza Humanitarian Foundation, has resigned from his post. ASAP interprets this as a moral disavowal of the foundation's activities, which it claims violate international humanitarian law. Abu Salama has urged all humanitarian organizations to cut ties with both the foundation and Safe Reach Solutions, calling their collaboration a betrayal of humanitarian ethics and of the Palestinian people's rights and dignity. This revelation comes at a time of increasing international condemnation of Israeli tactics in Gaza, particularly concerning the transformation of aid distribution zones into lethal zones. Just days ago, Israeli forces opened fire on a crowd of civilians near a U.S.-associated aid site in western Rafah, killing at least 30 Palestinians and injuring over 120 others. Palestinian factions have condemned what they describe as a manipulated aid scheme, accusing Israeli authorities of attempting to replace organized relief efforts with chaos, and using hunger as a weapon — a form of collective punishment. Since March 2, Israeli forces have blocked humanitarian aid from entering Gaza. On March 18, they broke a temporary ceasefire and resumed a campaign that has been widely described as genocidal, backed by U.S. political and military support. As of now, more than 176,000 Palestinians have been killed or wounded, the vast majority women and children, with over 11,000 still missing beneath rubble or presumed dead. Shortlink for this post:
ABC News
28-05-2025
- Business
- ABC News
Aid groups trying to get food into Gaza for months sidelined for shadowy US firm
Thousands of hungry Palestinians overran an aid compound in southern Gaza, desperate for food after weeks of Israeli blockade. They were coming to get parcels from a newly formed agency with links to both the American and Israeli governments. The food is some of the first that Gazans have had access to in weeks because Israel has been stopping almost all aid from entering Gaza since March 2, only allowing small amounts into the strip in the past week. While the Israeli Defense Forces (IDF) expand their military offensive in Gaza, the Israeli government has moved to stop the United Nations (UN) and other agencies from distributing food in Gaza and replaced them with a mysterious new contractor. The fate of many there now relies on a plan that echoes previous Israeli proposals to sidestep the longstanding international aid delivery system. Instead of recognised international agencies, a newly registered American private security contractor is now responsible for delivering food to 2.1 million Gazans. The company, Safe Reach Solutions, is unknown in the humanitarian field. It has been backed by a new charity with undeclared funding sources, and has been recruiting combat veterans. The company is reportedly headed by a former senior CIA officer, and was only registered in November last year. Safe Reach Solutions's relief operation is funded by the Gaza Humanitarian Foundation (GHF), a new charity which initially incorporated in both the United States and Switzerland before dissolving some of its legal entities in the face of investigations. The GHF's stated plan is to set up four aid distribution hubs in southern and central Gaza. The US government said the aid distribution hubs would be secured by the Israeli military outside and armed private security contractors within. But the GHF said there would be no Israeli soldiers near the hubs. "The IDF will not be stationed at or near [distribution] locations," it said. About 300,000 pre-approved Palestinians will be able to go to each of the four compounds, where they will be given "food rations, potable water, hygiene kits, blankets, and other necessary humanitarian supplies", the GHF said in a statement. It aims to expand that to reach more than 2 million people in total. "GHF's mission is to alleviate the suffering of Gaza's civilian population by delivering life-saving aid safely, securely, and in strict adherence to humanitarian principles — ensuring assistance reaches those most in need, without diversion or delay," the GHF said. The agency said it began delivering aid on Monday and would continue delivering aid daily despite the problem at its distribution point on Tuesday. Footage showed thousands of people mobbing the distribution site, but GHF played down the severity of the incident. "At one moment in the late afternoon, the volume of people at the SDS was such that the GHF team fell back to allow a small number of Gazans to take aid safely and dissipate. This was done in accordance with GHF protocol to avoid casualties," GHF said. "Normal operations have resumed." The agency said it had delivered about 8,000 boxes of aid so far. "Each box feeds 5.5 people for 3.5 days, totalling 462,000 meals," GHF said. Some Palestinians who received aid said they were grateful for the packages. "It's a big box. It is worth 1,000 shekels [about $400]. There is flour, sugar, cookies, there is everything," Salim Shehade, from north Gaza's Jabalia, said. "I can feed my children for a week with that," another recipient, Mohammad Afana, said. According to the Israeli military, 170 trucks belonging to the UN and other aid groups crossed into Gaza on Monday after security inspections. Aid agencies have said 500 to 700 truckloads of aid are needed every day to supply essentials. The Israeli military department that deals with civilian affairs in the occupied Palestinian Territories, COGAT, said it had cleared 400 trucks belonging to the UN and other agencies to enter Gaza. "The contents, containing primarily food, have accumulated in the past several days and are waiting for collection and distribution by UN teams, which have yet to arrive, collect and distribute aid to the Gazan civilians in the past week," the agency's head, Major-General Ghassan Alian, said in a statement." The United Nations and other groups have said Israel's escalation of its military campaign, refusal to coordinate access and the resulting chaos inside Gaza have made it almost impossible to safely deliver aid. The UN and established humanitarian groups have also expressed outrage about GHF's plan, which echoes multiple Israeli proposals for humanitarian "bubbles" inside Gaza aimed at isolating the militant group Hamas. Israel accuses the militant group of stealing aid and says its blockade on the entry of food into the strip is partly aimed at preventing Hamas from diverting supplies. But the World Food Programme's Cindy McCain said: "People are desperate, and they see a World Food Programme truck coming in, and they run for it." "This doesn't have anything to do with Hamas or any kind of organised crime or anything." An early plan for bubbles trialled in January 2024 reportedly failed when Hamas killed the Palestinians who had been hired to guard the aid. A similar idea was floated again in July 2024 and then again in late 2024, when Israel's government was being urged to consider something called "The Generals' Plan". Under the proposal from former IDF Major-General Giora Eiland, Israeli forces would clear northern Gaza and only deliver aid to the south. "After all the civilians leave and only the combatants stay, then we don't have to fight," he told the ABC in November. "Those combatants who stay in this area will have to decide either to surrender or to die of starvation." Already, the group has run into serious administrative problems. The executive director of the GHF, Jake Wood, resigned on May 25, the same day Swiss authorities announced they might investigate a human rights group's complaint about the organisation. Mr Wood said he resigned because of concerns about the aid mechanism. "It is clear that it is not possible to implement this plan while also strictly adhering to the humanitarian principles of humanity, neutrality, impartiality, and independence, which I will not abandon," he said in a statement. The rights group TRIAL International had asked Swiss government agencies to investigate whether the GHF complied with Swiss and international law. After that, the GHF announced it was closing the Swiss entity and would be operating solely with a new, US-registered foundation. The director of that foundation is American lawyer Loik Henderson, who the GHF said was a corporate law specialist. The GHF board said it was disappointed by Mr Wood's "sudden" resignation, but promised to begin deliveries the next day. "Unfortunately, from the moment GHF was announced, those who benefit from the status quo have been more focused on tearing this apart than on getting aid in, afraid that new, creative solutions to intractable problems might actually succeed," the board said in a statement. One experienced humanitarian worker in the region told the ABC that GHF's process was a "shit show", reminiscent of last year's $350 million US military pier that was supposed to help to bring aid to Gaza but broke up in rough seas after operating for only 20 days. "It's pier 2.0," they said. "And also a repeat of the air drops that killed people." Aid groups have condemned the plan from the outset, saying it breaches the humanitarian principles of impartiality, independence and neutrality. "It makes aid conditional on political and military aims. It makes starvation a bargaining chip. It is a cynical sideshow. A deliberate distraction. A fig leaf for further violence and displacement," UN under-secretary-general for humanitarian affairs Tom Fletcher told the UN Security Council on May 13. The plan threatens the established practices for delivering aid in conflicts worldwide, Oxfam's policy lead for the occupied Palestinian Territories, Bushra Khalidi, told the ABC. "If this becomes the new normal, the whole world is in trouble," she said. "We are basically turning aid into a tool of control. "If this becomes the only model — fragmented, militarised, opaque — it sets a terrifying precedent not just for Gaza, but for any future crises." The US government is nevertheless backing the proposal, saying it comes directly from President Donald Trump, and denying it is an Israeli plan linked to Israeli military goals in Gaza. "This is not an IDF or an Israeli operation. That would cause some potential partners to say we don't want to be involved," US ambassador to Israel, Mike Huckabee, told a press conference in Jerusalem on May 9. "The Israelis' role — and this is a significant one — is helping provide security. But they're not operating the distribution, they're not operating the bringing of the food in or the distribution of the food when it gets into Gaza." But investigations by The New York Times and Israeli newspaper Haaretz have both revealed extensive Israeli involvement in the plan. "The New York Times found that the broad contours of the plan were first discussed in late 2023, at private meetings of like-minded officials, military officers and business people with close ties to the Israeli government," the paper said. Neither the US nor Israeli governments have said who is funding the GHF. "There are some people who have already committed to helping fund," Mr Huckabee said. "They don't want to be disclosed as of yet. When they do, we'll announce them or they'll announce themselves." Israeli Opposition leader Yair Lapid has even suggested the Israeli government could be funding the group, something swiftly denied by Prime Minister Benjamin Netanyahu's office. Meanwhile, it remains unclear whether the Israeli military will allow deliveries to the various humanitarian agencies operating in Gaza. The groups said they have thousands of trucks waiting outside Gaza. Israel has only allowed a few hundred to enter the strip in recent days, after 11 weeks of complete blockade that sent Gazans to the brink of starvation, according to the UN and WHO. "We do not need to wait for a declaration of famine in Gaza to know that people are already starving, sick and dying, while food and medicines are minutes away across the border," WHO Director-General Dr Tedros Adhanom Ghebreyesus said earlier in May.
Days of Palestine
24-05-2025
- Business
- Days of Palestine
Three Obstacles Facing Israel-US Aid Distribution Plan in Gaza
DayofPal– A controversial U.S.-backed aid distribution plan faces mounting refusal and logistical challenges just one day before its scheduled implementation at a time the humanitarian crisis deepens for more than 2.4 million residents of the Gaza Strip. The plan, spearheaded by the American nonprofit 'Gaza Relief Foundation' and led by a former U.S. Marine, proposes a distribution system tightly controlled by Israel and secured by private American security firms. However, the plan is encountering serious opposition, particularly from the United Nations and major humanitarian organizations. According to reports from Zman Israel, three major obstacles threaten the viability of this aid model: No Humanitarian Experience The plan relies on two private firms, Safe Reach Solutions and U.G. Solutions, both run by former U.S. military and CIA officers, and lacking any significant background in humanitarian work or knowledge of the Palestinian context. The involvement of executives formerly associated with Blackwater has raised concerns among relief agencies, many of which have declined to participate. Notably, Safe Reach Solutions has reportedly advertised positions on LinkedIn for 'humanitarian liaison officers' to bridge operations with the aid sector. Unclear Funding The Gaza Relief Foundation has yet to clarify how it will fund its operations, including the procurement of food and the payment of contractors. Israeli media revealed attempts to broker deals with Israeli companies to supply the aid material, prompting fears that the plan is blending humanitarian assistance with commercial gains for the Israeli occupation. Observers warn that this could compromise the neutrality of the aid effort. Israeli Finance Minister Bezalel Smotrich has stated that only minimal aid will be allowed into Gaza, a move experts warn could lead to inflated prices and widespread theft. A 20-kilogram food box meant to support a family for a week could become a highly coveted commodity. One senior Israeli diplomat acknowledged that Gaza residents carrying aid over long distances could be at risk of robbery. The plan to draw tens of thousands of people into queues each day was described as 'insane and unfeasible.' Widespread Criticism from UN UN humanitarian official Tom Fletcher criticized the aid model as a 'cruel sideshow' during a recent Security Council session. He warned that placing distribution centers only in southern and central Gaza could be seen as advancing Israel's objective of depopulating the north. Fletcher emphasized that the proposed model would not only exclude vital areas from receiving aid but also make humanitarian assistance conditional on political and military goals, effectively using hunger as a bargaining tool. The Washington Post reported that this plan could severely limit the operational capacity of established UN agencies and international relief groups in Gaza. Many organizations adhere strictly to principles of impartiality and independence, avoiding involvement with armed entities. Representatives from 10 major humanitarian organizations told the newspaper that limiting distribution to select southern locations would be discriminatory and could provoke further displacement. UN Secretary-General António Guterres reaffirmed that the organization would not support a plan that disregards core humanitarian principles. The Office for the Coordination of Humanitarian Affairs stated that both the Secretary-General and the Emergency Relief Coordinator have pledged not to participate in any initiative that lacks neutrality or independence. The UN urged global leaders to push for an end to the blockade and enable unrestricted aid entry. 'Our teams remain on the ground in Gaza, ready to scale up deliveries as soon as the blockade is lifted,' the office stated. 'We have significant stocks of vital supplies waiting for entry.' Shortlink for this post:
