SpaceX, Musk under federal scrutiny over security protocols non-compliance - NYT

Investing.com -- SpaceX, the rocket company owned by Elon Musk, is under scrutiny for its failure to adhere to federal reporting protocols designed to safeguard state secrets, the New York Times (NYSE:NYT ) reported on Tuesday. This includes not disclosing some details of Musk's meetings with foreign leaders, according to people familiar with the company and internal documents.

The company's reporting practices, particularly those of Musk, the chief executive of SpaceX, have sparked at least three federal reviews. These reviews were initiated by the Defense Department’s Office of Inspector General, the Air Force, and the Pentagon’s Office of the Under Secretary of Defense for Intelligence and Security. The Inspector General's review began this year, while the Air Force and the Pentagon's reviews were started last month.

Musk was recently denied high-level security access by the Air Force due to potential security risks associated with the billionaire. Several allied nations, including Israel, have voiced concerns over the possibility of Musk sharing sensitive data with others, defense officials reported.

Internally, SpaceX has a team responsible for ensuring compliance with national security rules. Some team members have complained about the company's lax reporting to the Defense Department’s Office of Inspector General and other agencies. These complaints date back to at least 2021, according to four people familiar with the company. From 2019 to 2023, SpaceX received at least $10 billion in federal contracts from the Pentagon and NASA, making it a significant contractor.

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Source: Investing.com