The Australian National University (ANU) purchased $138,000 worth of shares in Elbit Systems, Israel's largest weapons manufacturer, in March, despite a prior commitment to avoid investing in controversial arms companies. The investment occurred 12 days after Israel resumed airstrikes in Gaza, killing over 400 people.
Elbit Systems is the primary contractor for the Israel Defense Forces and provides drones used extensively in Gaza. Monthly investment reports obtained under freedom of information laws reveal ANU bought 225 shares on 31 March. The shares were sold on 5 May, yielding an estimated profit of around $12,601.
In response to campus protests, ANU updated its investment principles in August to exclude companies involved in controversial weapons such as cluster munitions and nuclear arms. However, Elbit Systems was not on any exclusion list, and ANU said its external managers and advisory firms did not flag the company.
ANU also increased its holdings in Thales, a French weapons company, from 124 shares in February to 931 in March, valued at $396,445. Thales is not on Australian exclusion lists and is considered a 'green' investment by ANU's advisors.
Critics, including former UN inquiry member Chris Sidoti and Greens senator Mehreen Faruqi, condemned the investment as 'incredibly stupid' and 'absolutely disgraceful'. The National Tertiary Education Union's ACT secretary, Lachlan Clohesy, said ANU's investment policy is 'not fit for purpose'.
