Future Fund forced to divest $5m from sanctioned Chinese weapons company

AVIC had sold the Myanmar military K-8 light combat aircraft, 16 JF-17M combat aircraft, 40 short-range PL-5E missiles and 24 longer-range PL-12 missiles.

The Future Fund divested from AVIC in November, a month after the investment was revealed in freedom of information documents. The government is trying to shield the Future Fund from future FOI requests about its investments.

At Senate estimates on Tuesday, Greens senator Nick McKim asked Future Fund chief executive, Dr Raphael Arndt, whether the divestment was only made due to the embarrassment of the FOI.

Arndt said the divestment was made due to US sanctions against AVIC.

The UN also found in 2019 that China was breaching international humanitarian law by transferring military supplies through AVIC to the Tatmadaw.

But McKim said it was clear the divestment would not have happened without the FOI request.

The groups included Amnesty International, Justice for Myanmar, the Australian Council for International Development, the Australian Centre for International Justice, and the Australian Council of Trade Unions.

The government is seeking to shield the Future Fund from future FOIs about its investments. The changes, if passed, would grant wide-ranging exemptions to the Future Fund from FoI law.