Former minister will not stay beyond his current seven-year term, in which he was criticised for accepting donations from arms companies

This article is more than 1 year old

This article is more than 1 year old

The head of the Australian War Memorial, Brendan Nelson, will leave the role at the end of this year.

The government has announced that Nelson, who has directed the institution for seven years, will not stay on beyond his current term.

The veterans affairs minister, Darren Chester, said a national search would now begin to find his replacement. Chester praised Nelson, a former Liberal defence minister, for his “passion and outstanding contribution”.

“Brendan has provided leadership to the Memorial that has made it world-renowned, including managing its extensive upgrades and overseeing the Centenary of Anzac program,” Chester said.

“Under his guidance, the Memorial has also led a range of exhibitions, displays, memorials and documentaries of our first world war, Korean and Vietnam conflicts, and more recently, the commemorations of the centenary of the first world war, including the poignant display of 62,000 knitted Poppies.”

Brendan Nelson denies 'conflict of interest' after passing on fees from arms firm to war memorial Read more

Nelson has courted controversy during his time at the AWM, chiefly over the memorial’s vast $500m expansion and his acceptance of donations from weapons companies. Critics said the $500m would be better spent on helping veterans with post-traumatic stress disorder, and the acceptance of arms money was “contemptible”.

Arms manufacturers were afforded naming rights over parts of the memorial complex, such as the BAE Systems Theatre, named after a British arms multinational.

Nelson has been a staunch defender of the acceptance of arms company’s money. He said the companies had a duty to explain “what is being done in the name of our country”.

Guardian Australia revealed this year that Nelson was also accepting a personal fee from an arms manufacturer, Thales, while acting on its advisory board. Nelson said he had not kept the personal fee from Thales. The money had been passed on to the memorial as a donation, he said.

AWM directors are legally barred from taking outside employment unless they have the express permission of the government of the day.

Documents obtained by the Guardian also showed previous ministers gave him such permission, while warning him against putting himself into a conflicted position.

The then veterans affairs minister, Michael Ronaldson, said he was comfortable that “there does not appear to be a conflict” but said: “Where the two roles could potentially be in conflict, I ask that you take the necessary steps to avoid these circumstances.”

Thales has had frequent interactions with the AWM. It has provided general sponsorship support and backs individual exhibitions, such as the artist Ben Quilty’s After Afghanistan exhibit. It has also partnered with the AWM on the Napier Waller art prize.

One former former AWM director, Brendon Kelson, previously criticised the arrangement, saying he believed there was a conflict of interest, regardless of whether Nelson donated his fee.

“There’s a conflict of interest, in my view,” Kelson said. “It’s a national cultural institution, he’s sitting on the board of a donor to the institution. All of that – it just looks messy.”