Subcommittee. The four companies represent in sports and on its larger Strategic Vision for engagement with the United States. This hearing will come to order apologies for beginning a little bit late. We had a vote going, about 5 30, but i want to thank the foreign for individuals for being with us today and thank, as well, my friend, senator johnson, as Ranking Member for his cooperation and his support in moving forward with this hearing. A lot going on. Of historic magnitude, before the United States senate, but the issue before us today is truly of historic consequence in president ial and practical import. The issue is, in fact, whether for companies sitting here today represented by barry able leadership accepted their obligation to respond to congressional subpoenas. Their apparent refusal to do so in full is not only unprecedented but it threatens opening the door to other United States companies cloaking themselves from scrutiny whenever they work for a Foreign Government or even a foreign state owned enterprise. This potential shield invoked by these four consultants risk blocking not only this subcommittee, but all of congress from obtaining information needed to do our job. This subcommittee has long engaged in investigations into United States companies and foreign entities. It has engaged in negotiations over the scope of responsive materials. It has received documents and ensure their confidentiality, but it has never, ever conceded to a blanket, sweeping claim of foreign sovereign immunity over commercial documents in the possession of an American Company. It may seem like a technical issue to you, but it is of critical historic consequence to the United States congress in doing its job. Its simply staggering to me that American Companies are not only willing to accept this claim, allowing this saudi government to determine what is permitted to provide this subcommittee, but also that they would use it to justify the refusal to comply with a duly issued congressional subpoena. Congressional subpoena is not a request. It carries the full weight of the law, a failure to respond to it carries with it serious consequences. Its even more staggering that saudi arabia is threatening employees of your companys with imprisonment, if the documents we are seeking are not produced. Staggering to me. Outrageous. Perhaps we should be surprised. We began this inquiry last summer because of our concerns that saudi arabia, a country with an important human rights record was trying to take over American Golf and use that institution to sports wash its own public image. Saudi arabia and its advocates argue that we should believe that they are turning over a new leaf, beginning a new chapter. But we are presented with another example of extreme and defeasible deceitful conduct. To United States public and United States government, saudi arabia claims that these are just innocuous, commercial investments, including investments in sports, but in its own courts , it argues that its classified material pertaining to state, National Security and it simply cant have it both ways. We are seeking the United States documents from United States companies about United States investments, u. S. Focused strategies, and United States institutions, allowing these companies to ignore their obligation to respond to u. S. Law is not just a front to this subcommittee, it risks making a dangerous precedent that would allow companies to effectively contract away their obligations to other countries all around the world, where you do business, where you perform services to comply with United States law. Although the subcommittees inquiry began last summer with questions about the Saudi ArabianPublic Investment fund or the pif investment. Its become much bigger and more consequential. After mckinsey, bcg, teneo, and m. Klein, we issued subpoenas to we want to determine what work these companies have done and are doing that allows a foreign authoritarian government to use instruments of commerce in the United States to increase its influence within our shores and rebrand its tarnished image after years of horrific human rights abuses. Our subpoenas seek documents that will illustrate how these four companies have assisted the pif in increasing investments and exerting its influence in the United States. Our purpose is to understand the scope of services that have been provided, included but not limited to, how they intend to use these investments in the United States as entities and institutions. Like the pga tour and other sports, to increase their access. We intend to use the findings of todays inquiry to consider whether our laws surrounding the disclosure of foreign entanglements need to be strengthened. Our preliminary findings certainly suggest that we need stronger protections of American Interest when it comes to foreign entities. Just days before the original deadline to produce documents under the subpoenas, we learned from each of the secundum consultants that the pif had filed lawsuits in Saudi Administrative Court to block them from producing these documents to us. We were surprised to learn that pif had taken the unprecedented step of asserting that the records requested by this subcommittee are, quote, classified as confidential and quote. They could allegedly harm the National Security interest policies or rights of saudi arabia and pose a quote thread to that kingdom sovereignty, the saudi Court Ordered raised our alarm and added to the urgency of this investigation. How is it that consulting work performed by American Companies , including records about investment in the United States golf, could harm saudi arabias National Security . How can allegedly commercial investments directed at the United States be out of the reach of subpoenaed issued by the United States government . The fact that we have to ask these questions heightens our concern about their work, not only for saudi arabia, but for other regimes around the world, many of them authoritarian. The company sitting before us today have told us that they are concerned that they or their saudi based employees will be imprisoned in saudi arabia if they comply with our subpoenas and to this, i would say, and i say to saudi arabia, i know you are watching no one anywhere in the world should be arrested, imprisoned, or otherwise harm because an American Company has complied with american law. We will be watching what the reaction is, assuming that you decide to do the right thing and comply with american law. Our nation has long history of welcoming Foreign Investment and i want the saudi investments in the United States to continue. We also have a long history of transparency and compliance and adherence to the rule of law. Doing business in america requires compliance with american law and we are not about to sell our legal system to the highest bidder or the biggest bully. I know that saudi arabia wants to be a serious player on the world stage. I believe it can have a constructive role. I truly believe it can have a very positive impact in the widening crisis in the middle east, and i hope it will and i have visited saudi arabia and im convinced of its good faith determination to play that role but threats to u. S. Companies and interference with congressional oversight are simply not consistent with those goals. The pif is not here today, but it is its u. S. Based consultants are. While the pif conduct is troubling, the consultants bear responsibility, too. You have opted to sign contracts governed by foreign laws. You have chosen to put offices in saudi arabia where your employees may be imprisoned under its supposed legal system , you have chosen to accept what i suspect amounts to millions, if not billions of dollars in the face of a harrowing record of human rights abuses by your Business Partners in saudi arabia, and at least one instance, accused of being, of playing a role in those abuses. Even though you have documents that we are seeking, you continue to refuse to comply with our subpoenas unless explicitly authorized by the pif. Let me be clear. A series of choices got you to this point and you have decisions to make. The ramifications for todays hearing have the potential to echo far outside this chamber. This subcommittee will consider all of your valid, legal defenses. I respect your right to make them, but contracting with a foreign entity is not one of them. We are not about to allow a precedent that would make a foreign contract a defense to complying with a duly authorized subpoena. Saudi arabia is welcome and we do welcome the investment in the United States, if they invest in our enterprises and they take advantage of our Economic System and they have the protection of our rule of law, the rights under the United States law. They simply cant pick and choose the law as they are going to obey. With that, i turned to the Ranking Members. Thank you, mr. Chairman. Since the start of this subcommittees investigation into the Framework Agreement between the pga tour in the Saudi ArabianPublic Investment fund, the pif, ive been concerned that our intrusion into delicate negotiations could make it even more difficult for professional golf to create a structure that would allow the best players to regularly compete against each other at the highest level. Fortunately, we have not had a public hearing on the subject since last september allowing the pga tour to pursue these with minimal interference. Last wednesday, the bga announced it was pga announced it will be touring are out of the pga tours control. But divisions between the pga tour and li b golf remain and discussion between the two are ongoing. While other reports indicate that a deal is currently on life support. Until a formal decision is received between the two parties, i remain skeptical that it may do more harm than good. As Ranking Member, i not only knowledge acknowledge but defend the Constitutional Authority to investigate a broad range of issues and entities. Using that authority, chairman blumenthal continued to and its u. S. Business dealings. Information across to the pif subpoena that u. S. Subsidiary, u. S. Essay International Llc following the subcommittee offense efforts to in saudi court rulings, the consultants have been constrained with documents they believe they can provide. Its my understanding that all four firms here today are facing by producing certain records, their employees will be in violation of saudi law, and could face severe consequences. Is a very serious reality, the subcommittee must consider as it proceeds with this inquiry. I do have sympathy for the position the consultants find themselves in but i have no sympathy for the saudi claims of sovereign immunity. Any foreign entity wishing to do business in the u. S. Must comply with u. S. Law and be responsive to congressional subpoenas. That is why i chose to join chairman blumenthal in follow up letters to the consultants calling for full compliance with the subcommittee subpoenas. To be clear, conducting oversight of the pif is not my top priority, but i am supportive of preserving psis oversight prerogatives and responsibilities. Its the chief investigating body which white is armed with the ability to compel records. If its ability to access records weakens, then it will be reduced and congressional oversight will atrophy further. As a result, mr. Chairman, i join you on your followup letters to these consultants and the pif because i believe in defending psis authorities and access to records. I hope you will similarly support my efforts to obtain records that psi is authorized to receive. Failure to respond to my oversight request on the origins of covid 19 and the Development Distribution and safety of the coven 19 vaccines. I asked to subpoena hhs records and information containing by more than 50 outside outstanding requests, including 50 specific pages of dr. Feltys records and the empirical analysis of hhs uses to assess the safety of code 19 vaccines. Some of these outstanding requests are nearly three years old. Let me pause and just let that sink in. Prior to getting the authorization for the vaccine in december, the cdc and fda held a Video Conference where they were touting the benefits of the vaccine. They were saying they were going to take adverse event so seriously, they found somebody that reported a couple days lost were, they were going to follow up. That was total and complete bs. Early in the year, 2021, those agencies produced a Standard Operating Procedure where they describe the analysis, the proportional reporting ratios or empirical basing analysis on that system. They then denied that they produced those analyses later, we said, in fact, they did. I have been requesting now for well over a year that analysis. We pay for the salaries of these individuals working these agencies. We pay for these agencies. They publish these standing operating procedures. Theyre going to do these analyses. They do the analysis and they will not turn them over to my oversight request, which means they are keeping them hidden from the American Public. This subcommittee could not allow intended to obtain information that every american has the right to see. I hope you join me as i join you in defending the prerogatives with the subcommittee request. I think that witnesses for i think the witnesses for complying for the bipartisan request to appear here. Thank you. I totally respect the kind of oversight needed. Im prepared to take steps, beginning with strong communication to hhs that it has to comply with your oversight request and i am committed to work with you on moving forward. We will draft some letters. Thank you. Appreciate that. Let me introduce the witnesses. The global chair of Boston Consulting Group , a Consulting Company based in boston, massachusetts, employing more than 30,000 people in offices around the globe. Bob is the global managing partner of mckinsey, and Consulting Firm in new york city, has offices in more than 60 countries and employs more than 30,000 people. Michael klein is the leader of m. Klein and company , which is based in new york. Paul cleary of teneo is the chief executive officer of teneo strategy, and advisory firm, which is headquartered in new york city. As is our custom, i asked the witnesses to stand and be sworn in. Do you swear that the testimony you are about to give is the truth, the whole truth, and nothing but the truth, so help you god . Thank you. We will begin with your testimony, mr. Lesser. Chairman blumenthal, Ranking Member johnson, and distinguished members of this subcommittee, my name is rich lesser, im the global chair of Boston Consulting Group, or as we refer to it, bcg. I joined bcg in 1928 of these 1988 , and ceo from 2013 to 2021. I have. Before you today, proud to represent bcg. All 33,000 colleagues and more than 100 offices, including 25 in the United States. We strive to take on the hardest problems and take on an enormous value for our clients, while living our purpose and value every day. Bcg work in the Public Sector is guided by a mission to improve the financial, economic, and societal well being of the countries in which we operate and further citizens. In all our work, we apply consistent standards that dictate who we will work with and on what topics. Bcg opened its first office in the kingdom of saudi arabia when i was ceo in 2015. Our office there is now home to 260 bcg members of 28 nationalities, including american citizens. Women make up nearly 40 of our Consulting Team and approximately 50 of our overall staff. Saudi arabia is a longstanding u. S. Ally. It is undertaking important efforts to diversify its economy and is pursuing social and cultural reforms, improving education, developing infrastructure, and more. Saudi arabias Public Investment fund, or the pif, has been important part of the kingdoms Economic Development and diversification. Over the years, bcg has contributed to these efforts. For example, helping on saudi arabia furthermore, we supported unemployment and Training Programs and upscale young Saudi Arabians. Weve also worked on advancing the education system, and infrastructure development. Bcg is now caught between two sovereigns. T