One of the Australian Government’s top consultants, BCG, has been giving financial advice on the ethnic cleansing of Palestinians from Gaza. Michael West reports.
A Financial Times investigation last week revealed that the Boston Consulting Group (BCG) undertook a seven-month engagement code-named Aurora, which included modelling the costs of ‘relocating’ Palestinians from Gaza and advisory support related to the establishment of the widely condemned US and Israel-backed Gaza Humanitarian Foundation.
During the $4 million assignment (not carried out by BCG Australia but the US branch), which employed more than twelve people, the BCG team constructed a financial model for ‘relocating’ Palestinians out of Gaza, estimating in one scenario that over 500,000 residents would each require a ‘relocation package’ valued at US$9,000 each, less than the daily rate for one of these ‘management consultants‘ who are known to charge $16,000 a day, before discounts.
Whether this plan envisaged forced relocations requires further investigation to determine the degree to which the firm has provided support for the ethnic cleansing of Palestinians.
Gaza Humanitarian Foundation
Since the “Gaza Humanitarian Foundation” started operating on May 27, the UN High Commissioner for Human Rights reports that 410 Palestinians have been killed, with at least 93 others killed by the Israeli army while attempting to approach the very few aid convoys of the UN and other humanitarian organisations. In addition, over 3,000 Palestinians have been injured.
On June 24, the spokesperson for the UN High Commissioner for Human Rights Thameen Al-Kheetan said: “Desperate, hungry people in Gaza continue to face the inhumane choice of either starving to death or risk being killed while trying to get food.”
“Each of these killings must be promptly and impartially investigated, and those responsible must be held to account. The killing and wounding of civilians resulting from the unlawful use of firearms constitute a grave breach of international law and a war crime,” he said.
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BCG’s CIA ties
The Middle East Eye suggests that BCG was selected for this work in Gaza due to its ties to Phil Reilly, a former CIA veteran and long-time BCG adviser. Reilly subsequently founded Safe Reach Solutions, which became the Gaza Humanitarian Foundation’s principal security provider, with around six BCG staff joining him, the Middle East Eye reported.
Representatives from BCG are understandably scrambling with much hand-wringing: “Our ongoing investigation by an external law firm has substantiated the deep disappointment we expressed weeks ago.
“The full scope of these projects was not disclosed, including to senior leadership. The work carried out was in direct violation of our policies and processes.”
But is the mea culpa enough in the face of these war crimes enough? The Boston Consulting Group is a member of the United Nations Global Compact.
Their latest breathless sustainability report reflects this, stating: “BCG upholds internationally recognised human rights standards, committing to the principles of the UNGC, which are derived from the Universal Declaration of Human Rights and the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work.
“We also commit to respect the UN Guiding Principles on Business and Human Rights. These commitments are reflected in our policies and business practices…..Although we aim to prevent or mitigate issues before they occur, we also have processes in place to ensure proper remediation of any negative impact suffered by value chain stakeholders.”
In this context, BCG must explain not only how it became involved but also how it plans to remedy and materially address the harm suffered by Palestinians. Its contribution to the founding and design of the Gaza Humanitarian Foundation constitutes a potential “contribution” under the UN Guiding Principles’, to which it is a signatory.
Its endorsement of the Gaza Humanitarian Foundation’s proposal during its formative stage lent considerable credibility to the scheme, to the extent that several former BCG staff members were reportedly able to leave and profit from the initiative.
This should trigger the firm’s responsibility to provide for or cooperate in remedying any adverse human-rights impacts to which it has contributed. Even if BCG did not directly inflict harm, its endorsement and technical support for GHF means it must now take steps to address the consequences of those impacts on affected Palestinians.
Practically, BCG should cooperate with credible, independent processes to ensure that victims can secure restitution or compensation, and it should establish or fund an operational grievance mechanism that is legitimate, accessible and predictable.
The reputational damage to BCG is serious, with many refusing to work with the agency, such as the charity Save the Children which has announced that it is suspending its work with the Boston Consulting Group (BCG).
Will the Australian Government follow suit? Last year’s Senate Inquiry revealed a significant government reliance on management consultants such as BCG, with their use increasing threefold between 2010 and 2020 to over $1 billion, making Australia the fourth-largest user of such firms globally. It’s track record has hardly been unblemished yet the government contracts keep flowing.
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It should be said that BCG is hardly alone in paying lip service to good corporate governance and ethics, while avoiding tax, treating statutory disclosure with contempt.
A series of investigations here have identified hypocrisy of major corporate names who are signatories to the UN General Principles on business and human rights while supporting organisations linked to war crimes in Palestine. It is not just governments who fail to stand up to the Israel lobby.
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Michael West established Michael West Media in 2016 to focus on journalism of high public interest, particularly the rising power of corporations over democracy. West was formerly a journalist and editor with Fairfax newspapers, a columnist for News Corp and even, once, a stockbroker.