EXCLUSIVE: A national integrity expert has called on the Labor Government’s Cabinet team to immediately deal with Chief Minister Natasha Fyles’ “clear breach” of the NT ministerial code of conduct for failing to divest her shares in gas giant Woodside Energy when she obtained them last year.

Ms Fyles has come under intense scrutiny for her actions since the NT Independent revealed the shares last week and the inherent conflict of interest with Woodside’s interest in the carbon capture and storage project at Middle Arm – a major gas development Ms Fyles has publicly promoted with taxpayer money.

She first refused to explain how she manages the conflict of interest, then claimed she would be keeping the shares in hopes “they might grow for the kids”, before finally moving to divest what she claimed were 169 shares on Thursday in an effort to “end this distraction”.

However, under the NT ministerial code of conduct, Ms Fyles was obligated to divest the shares immediately after she obtained them in a merger between BHP’s petroleum division and Woodside in June 2022.

“Ministers must divest themselves completely of all shareholdings … in companies (both private and public) that may create a conflict of interest as a result of their portfolio responsibilities,” states the code of conduct in the Cabinet handbook.

Geoffrey Watson, a former counsel assisting the NSW ICAC and a director of the Centre for Public Integrity, told the NT Independent on Monday that Ms Fyles clearly breached the NT ministerial code of conduct and called on Cabinet and the Parliament to uphold its standards by reviewing the matter.

“This is a clear breach of the code of conduct – and it now becomes a question for the Cabinet and the Parliament to work out what the consequences should be,” he said.

“These codes of conducts across the country [seem to be] just treated as loose guidelines that don’t apply in all circumstances.

“They’re designed to improve politicians’ conduct and the public’s trust in politicians, which is just as important because once you lose trust, the system tends to fall apart.

“There is a clear moral responsibility to adhere to it; you’re the Chief Minister and you should be following the code of conduct.”

The code of conduct also states that ministers generally “should avoid situations in which their private interests conflict, have the potential to conflict or appear to conflict with their public duty”. It also warns that a “perceived conflict of interest may also constitute a conflict of interest”.

Mr Watson said that while the alleged number of Ms Fyles’ shares was not large and might seem “trivial”, the “principle was important” and the Cabinet needed “to make sure its [code of conduct] is not breached”.

The breach of the code and Ms Fyles’ days of flip-flopping on the issue was raised with Cabinet by independent MLA Mark Turner last week – the day before Ms Fyles moved to finally sell the shares – who pointed to provisions in the code to hold an emergency Cabinet meeting to discuss the breach, which could result in Ms Fyles’ resignation.

Mr Turner said on Monday that Ms Fyles had a long track-record of poor ethics and integrity failings, including failing to disclose Cabinet documents to the ICAC for an investigation into Cabinet being misled, cutting funding to the ICAC and repeatedly shutting down debate in Parliament on “crucial” issues.

“These [latest] actions are deeply troubling, especially given the clear guidelines outlined in our Cabinet handbook,” he said.

“The responsibility to address these breaches falls squarely on the shoulders of both the Cabinet and Parliament, and they must do so with the gravity these issues demand.

“To ignore such blatant ethical violations is to undermine the very foundations of our governmental institutions and to erode the trust the public places in us.”

As of Monday afternoon, no Cabinet meeting had occurred.

Deputy Chief Minister Nicole Manison told a press conference on Friday that Ms Fyles did not breach the code of conduct, but could not explain how she concluded that.

Ms Fyles has not publicly addressed her breach of the ministerial code of conduct. Her office refused to comment to the NT Independent.

Ms Fyles has also not explained why she did not disclose her shares in BHP on her Register of Members’ Interests between 2016 and 2020, when she first became a minister in the Labor Government, which appears to be a breach of the NT Legislative Assembly (Disclosures Act), and which could see her referred to Parliament’s disciplinary committee.