Conflict Of Interest Questions Emerge

The FAA announced it has decided to utilize SpaceX’s Starlink satellite internet system as part of its upgrade of communications and information technology networks it uses to manage the National Airspace System. Some suggest this raises new conflict of interest concerns for Starlink CEO Elon Musk in his role as an advisor within the Department Government Efficiency or DOGE.

It’s important to point out right here that most government contracts are awarded through a competitive bidding process, and in that context please note that Starlink already has contracts for satellite internet service for government agencies, in addition to private customers worldwide.

The size of this contract was not disclosed, but the concern is that SpaceX is a privately held commercial space technology company that has numerous contracts with the federal government, primarily NASA to launch its payloads for research and exploration.

Musk is currently the head advisor and strategist within DOGE and in that role he has been using computer professionals who are young but highly skilled in creating algorithms to search the government payment system to identify areas of potential waste, fraud, and abuse.

Critics contend that the contract was announced at a time when Musk’s priority has been focused on making cuts in federal government spending including the FAA, and that his role in overseeing an agency that is regulating his businesses at SpaceX and Starlink introduces the potential for a conflict of interest.

Critics say that Musk should be “required to publicly disclose his financial information like every other senior official in the White House.”

It is true that Musk has several businesses that are overseen by federal agencies including the FAA, NASA, the National Highway Traffic Safety Administration, the Securities and Exchange Commission, and others. It is also true that he has had disagreements with some of them, most notably for the aviation community, with the FAA over SpaceX launch scheduling and environmental concerns.

Musk acknowledges that the FAA has a contract with Verizon to upgrade its information technology networks but Musk said in a social media post that “The Verizon system in not working and so is putting air travelers at serious risk.”

Department of Transportation Secretary Sean Duffy has had numerous discussions with Musk and that he is satisfied that Musk is going to assist the FAA to “remake our airspace and do it quickly.”

We will see where all this leads and hopefully the FAA benefits along with the rest of the country.

FMI:  doge.gov/