Elbit Systems, Israel's largest defence manufacturer, has become a central player in Australian defence procurement, despite its controversial track record. Originally founded as a computer company in the 1960s, Elbit has since evolved into a global leader in military technology. Its advanced weaponry and drones, many of which have been used in Israel's ongoing military campaigns, are notorious for their lethal impact, particularly on civilians in Gaza.
Elbit’s Hermes drones, widely used by the Israeli Defense Forces (IDF), have been linked to civilian casualties during Israeli strikes in Gaza. One particularly infamous incident involved an Elbit drone in the deliberate targeting of an aid convoy, which killed Australian aid worker Zomi Frankcom and six of her colleagues. Despite this, the company continues to secure lucrative contracts, including one worth hundreds of millions of dollars from the IDF this year alone. Elbit proudly markets its products as "battle-proven," a term critics argue effectively means "tested on Palestinians." From drones designed for urban warfare to remote-operated armoured personnel carriers, the company has expanded its portfolio while remaining embroiled in controversy.
A History of Weapons and Sanctions
Elbit’s controversial legacy extends beyond Israel’s borders. The company has produced white phosphorus and cluster munitions—both heavily criticised for their devastating impact on civilians. While Elbit insists it no longer manufactures cluster munitions, its role in developing such weapons led to its temporary ban by Australia's Future Fund in 2021. Additionally, Elbit violated international sanctions when it sold weapons to Myanmar’s military junta after the 2021 coup, further tarnishing its reputation.
These controversies have led to multiple bans and divestments from major global institutions. Governments, including Norway's, and financial institutions such as Danske Bank, Deutsche Bank, AXA, and HSBC, have divested from Elbit. Most recently, Japan’s Itochu Corp cut ties with the company due to its involvement in restricted weapons production and its role in the Israeli occupation.
The Australian Connection: Billions in Taxpayer Dollars
Elbit’s entry into Australian defence began in 2007 when it started supplying drone parts to the Australian Defence Force (ADF). Since then, the company has been awarded over $1.9 billion in Australian taxpayer-funded contracts. These deals have continued despite concerns about Elbit's human rights record and its involvement in Gaza. Half of this funding has gone toward the Battle Management System (BMS), an ambitious project designed to integrate real-time data and communications across the ADF.
Despite this significant financial investment, the BMS project has been plagued by delays and doubts about its value for money. In 2017, after a series of issues, including Elbit's initial tranche being two years behind schedule, the Department of Defence awarded the second tranche to Elbit without seeking competitive bids—a move heavily criticised by the Australian National Audit Office.
But in 2021, the situation took a dramatic turn. The ADF suddenly halted the use of Elbit’s software in its BMS, citing concerns about potential security flaws. Reports surfaced that the Australian Signals Directorate (ASD) had identified a "back door" in the software, raising fears that sensitive data could be accessed by Israeli intelligence. This concern was especially alarming given the ADF’s use of intelligence shared through the Five Eyes alliance. Despite these fears, Elbit denied any security risks, and the full details of the breach remain shrouded in secrecy. To this day, Defence has not commented on how such a critical system was compromised or whether the issue was real or a product of ASD’s caution.
Elbit’s Continued Role in Australian Defence
Although Elbit’s software was pulled from the BMS, the company’s relationship with Australia remains strong. Since the security concerns came to light, Elbit has continued to receive defence contracts, with more than $34 million awarded to the company in recent years. In October 2023, Elbit was awarded another $688,000 for drone support services. Not even the death of Zomi Frankcom at the hands of an Elbit drone seems to have dissuaded the Australian government from doing business with the company.
This ongoing partnership between Elbit and the Australian government raises significant ethical questions. The company’s involvement in human rights abuses in Gaza and elsewhere, coupled with concerns about security risks, presents a troubling picture. Yet, for the Department of Defence, both Palestinian and Australian lives appear to be collateral in a broader calculus that continues to prioritise military procurement over accountability.
Comments
Post a Comment