The role of the Environmental Defenders Office (EDO) in unsuccessful legal action against Santos' Barossa gas project is under scrutiny, with the National Anti-Corruption Commission (NACC) being asked to delve deeper into the matter.
The referral by Shadow Resources Minister Senator Susan McDonald signals a troubling development for the environmental advocacy group, which now confronts the dual threat of potentially severe legal and political repercussions, compounded by Santos's $9 million bill.
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In the letter to the NACC, seen by ENB, McDonald writes: "I request the NACC conduct an urgent investigation into the conduct of the EDO, its employees, and its various subcontractors, based on the findings of the Federal Court, and give urgent consideration to whether their actions and activities fall within the meaning of corrupt conduct as defined by section 8.1 of the Act.
"Given the volume of Commonwealth grant funding provided (and planned to be continued) and given the value of the economic projects the EDO seeks to be engaged on, I ask that the Commission consider this referral with urgency.
"Further, as a part of the NACC's investigations, I also request that it assesses if any foreign sources of income the EDO receives and whether its failure to disclose such sources and conditions of funding could "adversely affect "either directly or indirectly" the honest or impartial exercise of any public official's powers as a public official", as defined by the Act."
Speaking exclusively to ENB, McDonald described the EDO as an activist organisation that sought to "obfuscate," "mislead," and not represent the Traditional Owners in their efforts to thwart Santos' Barossa project.
"We've already announced that we will be defunding the EDO if we're successful at the next federal election.
"Activist organisations - like the EDO - need to be on notice that their behaviour that previously has not had a spotlight shone on it will no longer pass for acceptable," she said.
"The blockages and the uncertainty for investment that the EDO has created is to the peril of all of us."
"Australia is a mining nation. That's what pays the bills, and that I am incredibly concerned that the EDO's behaviour has threatened Australia's future prosperity."
As reported in ENB, the EDO has been ordered to pay Santos' $9 million legal bill after their legal challenge failed. It is unclear as yet whether this will be met by the EDO's cash reserves, their insurance or financial support from elsewhere, something which concerns McDonald.
"We don't know, do we, and we should know, we absolutely should know. We have an organisation that is acting as an economic terrorist, and we don't know where their money comes from. We should care," she said.
"We don't know where their funding comes from, and we know that there is history in other jurisdictions of organisations being funded by outside bodies to undermine energy security and the nation."
The EDO is due to release their financial statement of accounts in the near future which might give some clarity to the issue of whether they can pay the legal bill.