Key US consulting firm withdraws from new Gaza aid mechanism

Nava Freiberg is The Times of Israel's deputy diplomatic correspondent.

A youth carries an empty box of relief supplies from the Gaza Humanitarian Foundation, as displaced Palestinians walk near a food distribution center in Rafah, in the southern Gaza Strip on June 1, 2025. (AFP)
A youth carries an empty box of relief supplies from the Gaza Humanitarian Foundation, as displaced Palestinians walk near a food distribution center in Rafah, in the southern Gaza Strip on June 1, 2025. (AFP)

The Boston Consulting Group (BCG), a US management consulting firm that helped establish the new American- and Israeli-backed aid distribution mechanism in Gaza, has abandoned the project, calling back its team from Tel Aviv on Friday, a spokesperson for the Gaza Humanitarian Foundation (GHF) says, confirming a report by The Washington Post.

A BCG spokesperson has said the company, responsible for setting the payment and procurement rates for a network of contractors tasked with constructing four aid distribution centers in southern Gaza, ended its contract with the GHF, the leading body running the mechanism, and has placed a senior partner overseeing the project on leave, awaiting an internal review, the report says.

BCG offered its services to the humanitarian effort on a pro bono basis and did not receive any compensation for its work, says the company’s spokesperson in the report. However, another individual familiar with the project disputes this claim, asserting that BCG submitted monthly invoices exceeding $1 million.

According to three sources connected to the GHF and the consulting firm, the new aid system will be harder to operate without the support of the consultants who helped build the project, the Post says.

The BCG withdrawal adds to the challenges faced by the GHF since it began operations, including the departure of top executives, separate allegations that it and the IDF opened fire on civilians collecting aid, and continued rejection by the United Nations and key humanitarian groups.

Following a nearly three-month aid blockade on the territory, Israel announced last week the start of the new system, which is meant to keep aid from reaching Hamas members. It has come under harsh condemnation from the United Nations, rights groups and foreign countries who claim it does not sufficiently address the humanitarian needs in Gaza. The GHF says it has to date distributed 7 million meals at three distribution sites, though the number is based on boxes of dry food products that require cooking equipment or community kitchens, which are limited throughout the war-torn Strip.

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