I work at a research institute. We have offices that are supposed to be just that - an office. And we have labs, lots of them. The labs are shared among the several hundred people that work at the institute, and anyone who has a serious need for the machinery, testing or analytics equipment in a specific lab can get an instruction and access, as the labs and the equipment within are shared "property".
A lot of the work we do is project based (often publicly funded), and when applying to such projects we have to make a calculation of how much of the grant money will be used for salaries, how much will be used for travel and how much will be used for materials. As it is often difficult to estimate how much money exactly will be needed for materials over the course of a multi-year project (and it is very complicated to shift funds from one pot to the other once the grant is given), we regularly have money left in the "material" funds, that would simply go back to the funding body if we don't spend it. So at the end of projects, we announce to the group that there is some money left and that people who need materials that fits the projects scope can use that rest to order stuff.
Over the course of the last 2 years, a colleague of ours has little by little ordered himself enough materials to set up his own little "lab" inside his office. Only he has access to it and he doesn't really allow anyone else access. Our group managers are not aware of the extent of this, as we do not go into each others offices all the time as many conversations have shifted to videocalls since COVID-19. Yesterday, one of the colleagues I share an office with went to the colleague with the private "lab" because he needed something, and saw that he now also has a new top of the line digital microscope that costs several thousand € in his "office-lab", that would be very beneficial for the work of a lot of people in our group but no-one was aware that it exists (and the colleague apparently when to our bosses boss to get the funds so our group leaders are not aware either).
We are now seriously contemplating telling our group managers about this little private set-up, and demand that most of the stuff gets moved to a real lab where others have access to equipment and resources that have been bought with the institutes money and should thus be accessible for all. On the other hand, it feels bad to "rat out" a colleague and we are worried about the implications for the whole group (as telling will probably lead to conflict of some sort). What is the best course of action to handle this situation?