The Boston Globe reported Wednesday that its recent investigation suggests that Harvard University invested approximately $50 million in Harken Energy Co. That company’s troubled financial situation led to the university’s largest-ever endowment loss in 1991.
The Globe report comes just weeks after Harvardwatch.org released a new report about Harvard’s involvement with Harken in the early 1990s. The report focuses on the Harken Anadarko Partnership, which was created by Michael Eisenson, a Harvard Management Co. executive and Harken director.
Harvard released a statement Oct. 9, saying the relationship between Harvard and the floundering company was not illegal.
“Harvard Management Company (HMC) investments in Harken Oil were not inappropriate and were disclosed openly and properly,” the statement said.
Harken came under scrutiny when it was determined that President George W. Bush had sold $848,000 of his Harken stock at the same time Harvard was bailing out the company.
But Michael Aguirre, a California securities lawyer, told the Globe that Bush received insider information, and that his communication with the buyer of his stock should be released.
The Globe also reported that evidence does not seem to suggest the Harvard Management Co. invested in Harken because of Bush’s affiliation with the company.