The internal crisis at the world-renowned consulting firm Boston Consulting Group (BCG) is deepening due to its connection with a controversial humanitarian aid initiative in Gaza. The company announced the departure of two senior partners who approved the project as part of its effort to quell the backlash from both clients and employees.

According to a report in The Wall Street Journal, the project began in the fall of 2023 as a pro bono initiative aimed at assisting with food supply in Gaza. However, it quickly transformed into an Israeli-backed and heavily criticized aid distribution network. According to local health officials, hundreds of Palestinians have been killed in recent weeks after fire was opened on civilians gathering around aid centers.

As the crisis escalated, BCG announced that Adam Farber, the firm’s chief risk officer, and Rich Hutchinson, the head of its social impact unit, have stepped down from their roles. Both will remain with the company as senior partners. According to sources, both executives approved the project in its initial stages but were not aware of all the details.

This development follows the dismissal of two other BCG partners, Matt Schlueter and Ryan Ordway, in June. The firm stated that these two individuals acted independently and against instructions after launching the project.

In a statement to The Wall Street Journal, BCG said, “At the end of 2024, a partner misrepresented the volunteer work. Months later, he moved to a paid phase without authorization and simultaneously conducted confidential modeling for the post-war reconstruction of Gaza. These activities were contrary to the company’s explicit instructions.”

BCG asserted that it received no payment for any of these activities and intervened immediately once the situation was discovered. An independent investigation allegedly revealed that the situation stemmed from a lack of oversight as well as individual misconduct.

BCG’s work in Gaza began in October 2023. The company signed an agreement to help develop a feasibility study for establishing a new aid organization in Gaza. The firm contracted with Orbis Operations, a Washington-based security company owned by the private equity firm McNally Capital. Orbis employs former CIA agents and counter-terrorism experts.

These efforts eventually led to the establishment of an entity called the Gaza Humanitarian Fund (GHF). However, GHF was harshly criticized by the European Union, more than 20 governments, and international aid organizations. The foundation was accused of forcing civilians to cross battlefields to receive aid. The Israeli army claimed it opened fire because the crowds posed a threat but later announced it would review its practices at aid distribution points.

In March 2024, BCG’s work became a paid engagement. The company, acting on behalf of McNally Capital, worked with the private logistics firm Safe Reach Solutions. Safe Reach was responsible for providing security during GHF’s aid distribution.

Over time, the two dismissed partners conducted a post-war modeling project that calculated the cost of moving Palestinians out of Gaza.

According to one of the models developed by BCG, which was uncovered by the Financial Times, it was projected that more than 500,000 Palestinians would leave Gaza with a “resettlement package” of $9,000 per person. The same model aimed for at least three-quarters of this population not to return. The company argued that this method was more cost-effective.

BCG claimed this work was carried out without its approval.

BCG’s association with this resettlement plan was met with intense backlash both inside and outside the company. The children’s aid organization Save the Children suspended its volunteer partnership with BCG last month.

In a letter sent to the company’s alumni this week, BCG CEO Christoph Schweizer stated, “Although this was in no way an official BCG project, the fact that we were associated with it is both disturbing and extremely damaging to our reputation.”

The UK Parliament has also launched an investigation into BCG’s relationship with GHF. A parliamentary committee has asked CEO Schweizer to explain the project’s timeline, who financed it, and the role of the dismissed partners. BCG has been asked to respond by July 22.

Former employees have questioned how a large and reputable company like BCG could get involved in such a project, and the firm’s internal control systems have also come under criticism. It is noted that having the chief risk officer also dedicate time to client projects creates a vulnerability. BCG has now initiated a comprehensive internal audit process.

West Asia is a growing market for consulting firms like BCG. The regional consulting sector, which reached a volume of $8.72 billion in 2024, grew by 11% compared to the previous year.

According to sources, consulting firms often contribute to humanitarian projects on a voluntary basis to strengthen their relationships with regional decision-makers and showcase their expertise. However, BCG’s latest project in Gaza has revealed how heavy a financial and reputational price this can carry for the company.

Billionaire investor Thomas J. Barrack, one of US President Donald Trump’s most trusted figures, is conducting an unconventional diplomatic mission in the Middle East with his dual role as the new US Ambassador to Ankara and Special Envoy for Syria.

Combining over forty years of experience in finance, law, and government with his deep commercial ties in the Middle East and a “personal friendship” with President Trump, Barrack has adopted a results-oriented approach he calls “event diplomacy” to reshape America’s policy in the region.

Barrack was nominated by President Trump as Ambassador to the Republic of Türkiye in March 2025, received Senate confirmation in April 2025, and officially began his duties on May 14, 2025. Shortly after this appointment, on May 23, 2025, he was also appointed as the US Special Envoy for Syria while continuing his ambassadorial role in Ankara.

A new era in Ankara: Is the F-35 and S-400 crisis being resolved?

During his tenure in Ankara, Barrack has frequently emphasized that Türkiye is a key regional actor and NATO ally that he believes has not always received the recognition it deserves. He stated that he relies on the strong personal relationship between President Trump and President Recep Tayyip Erdoğan to restore trust between the two countries.

Recounting a moment at a NATO summit where Erdoğan stood by Trump, Barrack expressed that, contrary to his public image, Trump is “actually sweet, gentle, and kind,” and that the two leaders “genuinely like each other.”

One of his most concrete diplomatic initiatives has been the commitment to resolve the crisis that began with Ankara’s acquisition of the Russian S-400 air defense system, which led to Türkiye’s removal from the F-35 program and the imposition of CAATSA sanctions. Barrack has publicly stated his belief that this dispute can be resolved by the end of 2025.

He said that Trump and Erdoğan would instruct their diplomats to find a solution and that the US Congress would also support a “smart solution.”

“All these issues that have been debated for five years; F-35s, F-16s, S-400s, sanctions, tariffs… Enough is enough,” Barrack said, calling on the parties to set these matters aside.

‘Event diplomacy’ in Damascus: Sanctions lifted, $7 billion deal signed

Barrack’s appointment as Special Envoy for Syria signaled a significant shift in Washington’s Syria policy following the fall of the Assad regime in December 2024. The Trump administration’s new policy is moving away from past “nation-building” efforts, focusing instead on lifting sanctions, economic reconstruction, and ensuring stability.

Barrack describes this approach as “event diplomacy” rather than “process diplomacy,” stating that priority is given to “actions and results.”

The first step of this policy was taken with President Trump’s decision on May 14 to “tear up the sanctions against Syria.” Immediately afterward, on May 23, the Treasury Department issued a general license lifting comprehensive sanctions against Syria and granted a 180-day waiver for sanctions under the Caesar Act.

To manage this process, Barrack met with Syria’s interim Head of State, Ahmed al-Sharaa, in Istanbul on May 24, and in Damascus on May 29 and July 9. As a concrete result of these meetings, a $7 billion energy deal was signed on May 29 between Syria and a consortium of Qatari, US, and Turkish companies.

Simultaneously, as a symbol of renewed diplomatic relations, the US Embassy residence in Damascus was reopened.

Tough topics on the table: SDF integration and Hezbollah’s disarmament

Despite progress on the economic front, significant challenges remain on issues such as the integration of military forces. Barrack is actively involved in negotiations for the integration of the Kurdish-led Syrian Democratic Forces (SDF) into the new Syrian army. However, the main point of contention is whether the SDF will remain a unified entity within the new army or if its members will be integrated individually.

Barrack acknowledged this is a “major problem,” stating that progress is being made in “baby steps” due to the necessity of building trust between the parties.

Barrack’s diplomatic efforts have also extended to Lebanon. He visited Beirut this week to receive the Lebanese government’s response to a US proposal aimed at the disarmament of Hezbollah and other armed groups. Although Barrack said he was “incredibly pleased” with the seven-page response, its details were not made public. The US proposal reportedly links the disarmament of Hezbollah to economic reforms for Lebanon and an end to Israel’s military operations in the country.

Barrack reiterated the goal of “one nation, one people, one army” for Lebanon, arguing that President Trump “does not have the patience” to continue negotiations without concrete progress.

Portrait of a real estate tycoon of Lebanese descent

Born in California on April 28, 1947, Thomas Joseph Barrack Jr. is the grandson of a Catholic family that emigrated from Zahle, Lebanon. He frequently references this heritage in his diplomatic engagements. After studying law at the University of Southern California, he began his career as a finance lawyer. In 1972, he was sent to Saudi Arabia, where he established close ties with a Saudi prince. In 1982, he was appointed Deputy Undersecretary of the Interior by President Ronald Reagan.

After his government service, Barrack returned to the finance sector and founded the global private equity firm Colony Capital in 1990, which would later become DigitalBridge. Under his leadership, the company invested over $200 billion in capital worldwide, becoming one of the world’s largest real estate investment firms. Throughout his career, he built an extensive global network of relationships, particularly with investors and governments in the Middle East.

Friendship with Trump and past legal proceedings

Barrack has a close friendship with Donald Trump that spans decades. He served as a senior advisor on Trump’s 2016 presidential campaign and, after the election, chaired the 58th Presidential Inaugural Committee, raising over $100 million in donations.

However, these close ties, particularly his connections with the UAE, also led to legal troubles. In July 2021, he was arrested on charges of acting as an unregistered agent for a foreign government. He was acquitted of all charges in November 2022. Previously, in the final days of Trump’s first term, he had benefited from a presidential pardon related to the 2019 “college admissions scandal.”

While a group from the PKK is expected to lay down its arms tomorrow, the impasse in yesterday’s talks between Syria’s new central government and the Syrian Democratic Forces (SDF), which controls the country’s northeast with US support, could not be overcome. US Ambassador to Ankara and Special Envoy for Syria Tom Barrack stated that following the meetings in Damascus, which he attended, the transitional government in Damascus and the Kurds still disagree on the issue of integration.

An integration agreement was signed on March 8 between Hay’at Tahrir al-Sham (HTS), which established a transitional government in Syria after overthrowing the Bashar al-Assad regime, and the SDF. The agreement described the Kurds as a “fundamental component” of Syria and stipulated that the SDF and the political institutions in northeastern Syria would be integrated into the central army and administration by the end of the year. The plan also included transferring control of border crossings with Turkey and Iraq, as well as airports, oil fields, and camps holding ISIS members in the northeast, to the central government.

However, after the agreement, whose details were not fully clarified, the dispute over the SDF’s demand to be included in Syria’s new army as a single bloc without being disbanded had not been resolved.

The parties met in Damascus yesterday to discuss this issue as the PKK’s disarmament process accelerated. The talks between HTS leader Ahmed al-Sharaa (Abu Mohammad al-Jolani), who has declared himself Syria’s interim president, and SDF General Commander Mazloum Abdi were attended by Barrack, as well as France’s Special Envoy for Syria, Jean-Baptiste Faivre. However, Barrack announced that the “serious differences of opinion” between the parties on joining forces could not be overcome.

‘Unification is still a major issue’

Speaking to the Associated Press (AP), Barrack said of the issue of whether the SDF will join the new Syrian army as a separate unit or be disbanded with its members joining individually, “I don’t think there has been progress on this.” Barrack stated, “This is still a major issue between these two sides.”

“I think these kinds of things happen in baby steps because making progress is based on trust, commitment, and understanding,” Barrack said, adding, “Two sides that have been living apart for a while, and perhaps have had a hostile relationship for some time, need to build trust step by step.”

‘I hope the SDF will act quickly’

Notably, Barrack praised the new administration in Damascus, saying it was “doing a great job of presenting options to the SDF.” Regarding the SDF, the US representative said, “I hope they will consider these options. I hope they will do it quickly.”

Barrack stated that their confidence in the new Syrian army is “complete” and that the SDF is a “valuable partner” in the fight against ISIS. “The US wants to ensure that the SDF has the opportunity to integrate respectfully into the new government,” Barrack said, adding that for now, they are “not in a hurry” to completely withdraw the approximately 1,300 American soldiers in Syria.

‘Federalism will not work in Syria’

In an interview with the Erbil-based website Rudaw after the talks in Damascus, Barrack’s statement that “federalism will not work in Syria” was noteworthy. In response to a question about the relationship between the HTS government in Damascus and the SDF, Barrack said, “My perspective is this: The Syrian government has shown extraordinary and great enthusiasm to include the SDF in the framework we discussed: One homeland, one nation, one army, one government. As for the details of how this will be implemented, I think the Syrian government has shown its flexibility very well and decisively in finding a way to reconcile these interests.”

Tom Barrack continued, “To be honest, I think the SDF has been slow to accept this situation, to negotiate, and to take steps in this direction. My advice to them is to speed up this process. There is only one way, and that way is Damascus. That is the message.”

‘Adaptation takes time, but a state within a state cannot be established’

Regarding US Senator Marco Rubio’s statement that “Kurdish autonomy is one of the main pillars of US policy in Iraq,” Barrack made the following comments:

“With his words about autonomy and sovereignty, Senator Rubio means that Iraq is one nation, and Syria is one nation. The Kurds are a unique, distinguished, and beautiful component within these nations. I do not believe he meant an independent Kurdistan… The problem is that we have seen that federalism does not work in all these countries and that an independent state cannot be established within another state. So it takes time for everyone to understand this, especially after the terrible events Syria has experienced for years; adaptation takes time. But we are running out of time. The world is moving fast, the region is moving very fast. Look at what has happened in the last three weeks, it’s incredible. So this is the opportunity. The opportunity for Syria is now. The world wants to help them. Everyone complements each other. We must not stand in our own way. We all need to compromise and reach this conclusion: One nation, one people, one army, one Syria.”

The ‘onion peel’ analogy on the Israel issue

Meanwhile, regarding the reported talks between Syria’s new administration and Israel, Tom Barrack said, “My feeling about what is happening in the neighborhood is that this needs to happen, and as the region builds trust in each other, it will happen slowly, like peeling an onion.”