This hearing will come to order. Apologies for beginning a little bit late. We have another vote at about 5 30. I want to thank the four individuals or Witnesses Today for being with us. And i would like to thank as well my friend, senator johnson, for his cooperation and 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 the store consequence in president ial and practical import. The issue is in fact whether four companies sitting here today, represented by very able leadership except their obligation to respond to congressional subpoenas. The apparent refusal to do so in full is not only unprecedented, but it threatens opening a door to other u. S. 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 risks blocking not only the subcommittee, but all of congress from obtaining information needed to do our job. This subcommittee has long engaged in investigations into u. S. Companies and foreign entities. It has engaged in negotiations over the scope of responsive materials. It has received documents and insured 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 historical consequence to the u. S. Congress in doing its job. It is simply staggering that American Companies are not only willing to accept this claim, allowing the saudi government to determine what is permitted to provide this subcommittee, but also that they would use it to justify their refusal to comply with a duly issued congressional subpoena. A congressional subpoena is not a request. It carries the full weight of the law. The failure to respond to it carries with it serious consequences. It is 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 not be surprised. We began this inquiry last summer because of our concerns that saudi arabia, a country with the poor and human rights record, was trying to take over American Golf and use that to sports wash its own public image. Saudi arabia and 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 deceitful conduct. Two the United States public, and the United States government, saudi arabia claims 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 interests. It is simply cannot have it both ways. We are seeking u. S. Documents from u. S. 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 an affront to the subcommittee, it risks allowing 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 laws. Although the subcommittees inquiry began last summer with questions about the Saudi Arabia Public Investment fund in u. S. Golf, it has become much bigger and more consequential. After mckinsey, bcg, each refused to voluntarily produce records about their work because of the saudi arabia objections and we issued subpoenas compelling them to do so. Our goal is simple, 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 and increasing investments and asserting influence in the United States. Our purpose is to understand the scope of services they have provided, including but not limited to how they intend to use these investments with United States entities and institutions like the pga tour and other sports to increase their access. We intend to use the findings to consider whether our laws surrounding the disclosure of foreign entanglements needs to be strengthened. The preliminary findings certainly suggest that we need stronger protections of american interests when it comes to foreign entities. Just days before the original deadline to produce documents and the subpoenas we learn from each of the consultants that they had filed lawsuits in Saudi Administrative Court to block them from producing these documents to us. We were surprised to learn that they had taken the unprecedented step of asserting that the records requested by the subcommittee are classified as in confidential, and that production of these records to congress could allegedly harm the National Security interests , policies or rights of saudi arabia and pose a imminent threat to the kingdoms sovereignty. The claims of threats to Saudi Arabian sovereignty and the court order 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 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 a subpoena issued by the United States government . The fact that we have to ask these questions heightens our concerns about their work, not just for saudi arabia, but for other regimes around the world, many of them authoritarian. The companies 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. 2 this, i would say and i say it to saudi arabia, i know you are watching, no one anywhere in the world should be arrested, imprisoned or otherwise harmed because an American Company has complied with american law. And 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 a 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. I have visited saudi arabia and i am 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. It is u. S. Based consultants and while the conduct is troubling 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 billions of dollars in the face of a harrowing record of human rights abuses by your Business Partner and at least in one instance, accused of being, of playing a role in those abuses and even though you have documents we are seeking, you continue to refuse to comply with our subpoenas unless explicitly authorized by them. 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. The subcommittee will consider all the valid legal defenses. I suggest your right to make them, but contracting with a foreign entity is not one of them. We are not allowed to allow a precedent that would allow a foreign contract to be a defense to complying with a duly authorized subpoena. Saudi arabia is welcome and we do welcome their 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 United States law, they cannot simply pick and choose the laws theyre going to obey. With that i turned to the Ranking Member. Since the start of the subcommittees investigation into the Framework Agreement between the pga tour and the sad arabian Public Investment fund, the pif, i have been concerned that our intrusion could make it 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 tour to pursue the goal with minimal interference. It appears that progress has been made. Last wednesday the announced they are partnering with Strategic Sports group, which will invest up to 3 billion into a new commercial venture. Divisions between the pga tour remain and discussions are ongoing. Some public reports indicate that a final agreement could occur before the Masters Tournament in april, while other reports indicate that a deal is on life support. Until a formal decision is reached between the parties, i remain concerned that any congressional oversight of the matter may do more harm than good. That said, as Ranking Member i not only acknowledge but i must also defend the sub it is Constitutional Authority to investigate a broad range of issues and entities. Using that Authority Chairman blumenthal chose to continue the inquiry into the pif and u. S. Business dealings. They sent the request to the pif and subpoenaed the u. S. Subsidiary and eventually subpoenaed the pifs four u. S. Based consultants following the records requests. Unfortunately, due to claims of immunity, the consultants have been constrained in what documents they believe they can provide. It is my understanding that all four firms here today are facing litigation instigated by the pif in saudi court. They claim that by producing Certain Records their employees would be in violation of saudi law and could face severe consequences it is a very serious reality that the subcommittee must consider as it proceeds. I do have sympathy for the position the consultants find themselves in, but i have no sympathy for the saudi claims of sovereign immunity in this inquiry. 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 and calling for full compliance with the subpoenas. To be clear, conducting oversight of the pif is not my top priority, but i am supportive of supporting the oversight prerogatives and responsibilities. Psi is the chief investigative body, which is why it is armed with the power to compel the production of words. If the ability to access records is weakening, then oversight will atrophy further. I join you in your followup letters to these consultants and the pif, because i believe in defending access to records. I hope you will similarly support my efforts. Towards the end of last year i sent you two letters totaling 30 pages detailing the department of health and Human Services failure to respond to my oversight requests on the origins of covid 19 and the development, distribution and safety of vaccines. I ask that you subpoena hhs records and information contained in my more than 50 outstanding arrests, including 50 specific pages of dr. Faucis records and the empirical bayesian analysis that hhs uses as a surveillance tool to assess the safety of covid 19 vaccines. Some of these outstanding requests are nearly 3 years old. Let me pause to let that sink in. Prior to getting the emergency use authorization for the vaccine in december, the cdc and fda held a Video Conference where they were touting the benefits of the surveillance system. They said they were going to take adverse events so seriously, they found somebody who reported a couple days lost work they will followup. That was total and complete bs. Early in the year of 2021 those agencies produced a Standard Operating Procedure where they described the analysis and proportional reporting ratios on the system. They then denied that they had produced those analyses and later recanted that and said in fact they didnt. I have been requesting now for well over one year that analysis. We pay for the individuals working at these agencies. We pay for these agencies. They publish the Standard Operating Procedures and they say theyre going to do the analysis 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 cannot allow taxpayerfunded agencies to obstruct oversight intended to obtain information that every american has the right he. I hope you will join me in defending psis oversight prerogatives and together demanding full compliance with the subcommittees request. I think the witnesses for complying with todays hearing and look forward to your testimony. Let me assure you that i totally respect the minorities responsibility and right to do this kind of oversight. I am prepared to take steps, getting 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. The global managing partner of mckenzie, a Consulting Firm headquartered in new york city, and they have offices in more than 60 countries and employ more than 30,000 people. Michael klein is the leader of emma klein and company. A global strategic advising Company Based in new york. Paul cleary is the chief executive officer of a Global Public relations and Advisory Firm 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 the subcommittee, i am the global chair of boston consulting group, or bcg. I joined bcg in 1988. I was chair for north and south america from 2009 through 2012 and ceo from 2013 through 2021. I appear before you today proud to represent bcg. All 33,000 colleagues across 50 countries and more than 100 offices, including 25 in the United States. We strive to take on the hardest problems and create enormous value for our clients while living our purpose and our values every day. Our work in the public sector, including with governments and government owned entities is guided by a mission to improve the financial, economic and societal wellbeing of the countries in which we operate and for their 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 employees 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 and has undertaken important the first to diversify its economy and are pursuing social and cultural reforms, improving education, developing infrastructure and more. Saudi arabias pif has been an important part of the Economic Development and diversification. Over the years they have contributed, for example helping on the saudi arabias labor market reforms including increasing womens participation in the workforce. Furthermore, we have supported saudi arabia in defining employment programs and upscaling young Saudi Arabians. We have also worked on advancing the Education System and infrastructure development. Bcg is now caught between two sovereigns. The subcommittee request