The state auditor has released its special report on the financing of the LUXEOSys military satellite, finding that costs were mismanaged from the beginning of the project.
The report was presented and discussed in the Chamber's bugetary control commission.
It concluded that the project was still in a draft stage when then-Minister of Defence Etienne Schneider presented it to the Chamber of Deputies in March 2018.
The report alleges that there were mistakes in the planning of the project, such as foregoing a feasibility analysis to determine whether the satellite can actually be operated from Herrenberg. Other elements have been completely forgotten, the report further notes.
All these factors have contributed to the need for a second vote on a new budget for the project, which took place in December 2020 and added €139 million. The project now amounts to €309 million, an increase of 82%.
The state auditor further concludes that then-Minister Schneider misled the public about the satellite, stating that imagery could eventually be used to generate revenue.
The government council approved the LUXEOSys project without providing details to MPs in the Chamber, citing reasons of confidentiality. This means that the members of concerned commissions were forced to discuss the satellite without knowing the full scope of costs.
The purchase of the military equipment was approved by the Chamber in 2018, with only the Left voting against the project. The special report further noted that the Ministry of Defence knew as far back as May 2018 that the initial costs for the project would be exceeded.
The first doubts about the costs of the project arose in 2020. Although opposition politicians intended to create an enquiry commission, this never happened, and the government instead tasked the state auditor with creating a special report.
The state auditor recommended that it should regularly analyse large investments made by the Ministry of Defence and inform the budgetary control commission about any progress.
