A significant international telescope project in outback Australia, the Square Kilometre Array Observatory (SKAO), is currently facing serious allegations of financial misconduct. The observatory, which includes over 130,000 antennae and is situated in Western Australia, aims to map the universe’s first billion years and investigate fundamental questions such as the existence of extraterrestrial life.
The project is a collaboration between Australia and South Africa, backed by a budget of approximately €2 billion (A$3.6 billion). While it is hailed as one of the most ambitious scientific endeavors of the 21st century, internal issues have surfaced that threaten its integrity. Allegations of financial mismanagement have been brought to light, leading to a whistleblower’s disclosure regarding the observatory’s funding practices.
In March 2023, the SKAO’s Australian telescope captured its first images of distant galaxies, utilizing only 1% of its total capacity. Around the same time, a former senior employee filed a “protected disclosure” report to the global chair of the SKAO, Filippo Maria Zerbi, calling for an investigation into the organization’s financial management. As an intergovernmental body, the SKAO operates outside the jurisdiction of national laws in Australia, necessitating direct communication with its leadership.
The allegations include claims of significant budget overruns. The Australian government’s contribution to the SKAO has reportedly increased by more than A$150 million from 2020 to 2024 compared to its initial budget, with the additional funds attributed to funding shortfalls. The government had initially pledged A$387 million over a decade, but documents reveal that over A$475 million has been spent from 2021 to 2025.
A spokesperson for the Australian Department of Industry, Science and Resources stated that the additional expenses included contributions to the SKAO and other commitments associated with the project, such as investments in the Australian SKA Regional Centre. The spokesperson explained that fluctuations in foreign exchange rates and adjustments to economic parameters have also impacted the project’s budget.
In response to the whistleblower’s report, Zerbi confirmed that an independent evaluation of the allegations is underway. He emphasized the importance of conducting a thorough investigation before making any conclusions. The whistleblower has also raised concerns with the UK’s financial reporting council, alleging that the SKAO’s structure has created a “regulatory blind spot” leading to systematic deception of its member states.
The SKAO was established in 2019 through an international treaty, granting it special legal status that allows it to operate with immunity from typical legal processes and tax obligations. Members are not privy to the total financial contributions made by each participating nation. While the UK and Australia are majority shareholders, details remain undisclosed.
Among the allegations are claims of mismanagement of procurement budgets, which have resulted in delays and changes to the project’s scope. For instance, the telescope currently relies on temporary diesel generators for power, having failed to establish a permanent power supply. Although the SKAO’s website claims that energy is primarily sourced from renewable sources, no solar plant has been built to date, and the organization is reportedly spending more than A$1 million annually on diesel fuel.
In July 2023, an internal update indicated that the project’s schedule and scope were under review, with a “budget gap” expected to be assessed over the coming months. The spokesperson for the SKAO stated that the organization continuously reviews its scope and that the recent updates are driven by programmatic factors rather than financial concerns.
Additionally, the SKAO’s financial practices have come under scrutiny following a €5 million grant from the European Commission for infrastructure development. A letter from the European Research Executive Agency suggested that €3.4 million of this grant needed to be repaid, as many claimed costs were deemed ineligible.
While the SKAO spokesperson denied any wrongdoing regarding the allegations of lost public funds, they confirmed that an external investigation is in progress. They asserted that no capital loss has been incurred and that the investments were intentionally low-risk.
As the investigation unfolds, the future of the SKAO project hangs in the balance, with its ambitious goals now overshadowed by concerns regarding financial integrity and governance.
