Victoria’s auditor-general has ignited a storm over the state’s $100 million life sciences computing facility after questioning whether it represented “value” for public money.

The Victorian Life Sciences Computation Initiative (VLSCI) involved the University of Melbourne, technology partner IBM and $50 million in state government funding.

It was expected to establish two x86 clusters (by IBM and SGI) and an IBM Blue Gene/P supercomputer by 2012 – the most powerful in Australia.

But an audit tabled today concluded that despite “positive early signs” from researchers, “the University cannot demonstrate that the initiative represents the most effective use of the $50 million provided by the state government”.

The Auditor-General’s conclusion was based on an apparent lack of scoping and cost-benefit analysis undertaken by the University.

The report was met with heavy criticism from the University’s vice-chancellor Glyn Davis and from the state Department of Business and Innovation (DBI).

DBI secretary Howard Ronaldson attacked the issue of value, pointing out the department’s disappointment at the “limited acknowledgement of the progress achieved” by the initiative.

“I note that you have advised the Department that the [audit] does not conclude that the VLSCI was not the most effective use of $50 million provided by the State Government,” Ronaldson said.

“Rather, to paraphrase, the [audit] reflects your judgement that assurance cannot be provided from the processes observed within the scope of the audit.”

Davis said the Auditor-General’s finding went against advice provided to the University throughout the project.

He said the University was “aware that [the audit office] was intending to use VLSCI as a ‘case study’ audit…

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