Boston Consulting Group’s Involvement in Gaza: Humanitarian Aid or Transfer Planning?
The consulting firm is accused of developing models for the transfer of Palestinians from Gaza and assisting in the establishment of a controversial aid organization, which has led to internal dismissals, external investigations, and the suspension of partnerships
Photo: IDF Spokesperson’s Unit
The American consulting firm Boston Consulting Group, known as BCG, has become embroiled in a major controversy due to its involvement in projects related to Gaza. Since October 2024, a company team has provided support for the establishment of the Gaza Humanitarian Assistance Fund, an American-Israeli-backed organization intended to replace parts of the UN’s aid mechanisms. The project involved a $4 million contract over seven months and led to the dismissal of two senior partners and a parliamentary inquiry in the UK.
According to a report by the Financial Times, BCG developed financial models for the voluntary relocation of approximately 500,000 Palestinian residents from the Gaza Strip. The models proposed relocation packages valued at $9,000 per person, including $5,000 in cash, four years of subsidized rent, and one year of subsidized food.
The assumption was that a quarter of the population would choose to leave and that three-quarters would not return. The total cost was estimated at around $5 billion, and the models indicated that forced relocation would be $23,000 cheaper per person compared to rebuilding the Gaza Strip. According to Middle East Eye, the project was linked to the Gaza Humanitarian Assistance Fund, which operated out of Tel Aviv in partnership with the American security firm Orbis and the Israeli think tank Takhlit Institute.
BCG claims the activity was unauthorized and led to the dismissal of the responsible partners in early June 2025. In an official statement, the company expressed regret over the failure to uphold its standards, stated it received no payment, and ceased all work. BCG CEO Christoph Schweizer described the project as a severe reputational blow and announced an independent internal investigation. According to the New York Post, a UK parliamentary committee demanded that the company explain its activities in Gaza, following growing public pressure.
The controversy has already had immediate consequences. On June 13, 2025, Save the Children suspended its partnership with BCG, calling the involvement "completely unacceptable" and contrary to humanitarian principles, according to The New Humanitarian. According to Health Policy Watch, the World Health Organization is considering a new $4.2 million contract with BCG despite the criticism. Additional reports linked the project to the Tony Blair Institute and American security firms, including Phil Reilly, a senior BCG advisor and former CIA official.
The events exposed internal tensions within BCG, with employees voicing anger over the involvement. According to the Wall Street Journal, the models were calculated in the context of post-war planning, but BCG emphasized they were not part of the official scope of work.
The scandal highlights the challenges facing global consulting firms involved in conflict zones, where the lines between humanitarian aid and politics are increasingly blurred. BCG continues to face repercussions, including the possibility of further investigations, as it seeks to restore its reputation.