Perth: The Square Kilometre Array Observatory (SKAO), one of the world’s most ambitious astronomy projects, has come under scrutiny following allegations of financial mismanagement and operational shortcomings at its Western Australian site. A whistleblower has accused the organization of concealing significant losses and overspending, prompting an independent investigation.
The protected disclosure claims that SKAO exceeded its Australian budget by AU$164 million between 2020 and 2024. It also alleges that at least £12 million, or about AU\$25.1 million, was lost through money market fund investments and later disguised through internal shifting of accounts and fabricated currency fluctuations. The whistleblower further argues that SKAO’s special international legal status, which grants it diplomatic immunity and exempts it from national regulatory oversight, has created a regulatory blind spot that allows misconduct to go unchecked.
SKAO has denied any wrongdoing, stating that the reduction in investment balances was the result of planned redemptions for operational costs rather than losses. The observatory insists its financial systems are subjected to rigorous audits and reviews by both internal and external bodies, none of which have revealed major issues. Chair of the SKAO Council, Professor Filippo Maria Zerbi, confirmed that an independent review has been commissioned to examine the allegations in detail.
The whistleblower’s disclosure also raises questions about project management. Despite commitments to power the Western Australian telescope site with renewable energy, the facility currently relies on diesel generators at a cost exceeding AU$1 million annually. A phase one diesel-based power system is expected by early 2026, while a solar and battery alternative is planned for 2028.
Further complications have emerged from SKAO’s European funding arrangements. The European Commission clawed back €3.4 million from a €5 million Horizon 2020 grant, citing ineligible costs, leaving the project with only €2.5 million. SKAO described the matter as resolved amicably and fully disclosed to its governing structures.
Internal documents also reveal that a recent program and schedule review has extended timelines for both the Australian low-frequency and South African mid-frequency components of the project. Officials acknowledge a growing budget gap and suggest that changes to the project’s scope may be considered.
Beyond financial and operational issues, scientific concerns are also threatening the observatory’s progress. Recent studies indicate that Starlink satellites are emitting unintended radio frequencies that interfere with SKAO’s low-frequency observations. Researchers have found signal leakage in nearly 30 percent of captured images, raising alarms about the telescope’s ability to achieve its ambitious scientific goals.
As the independent inquiry continues, the future of the Square Kilometre Array project remains uncertain. While SKAO insists that its financial practices are sound and its timelines are achievable, the combination of governance concerns, infrastructure delays, and satellite interference poses a major challenge to what has been hailed as a groundbreaking international effort to explore the universe's mysteries.