The Finocchiaro CLP Government has refused to comment on revelations Darwin Waterfront Corporation chief executive Alastair Shields is using the Kitchener Drive multi-storey carpark as a private garage for his vintage Mercedes collection at taxpayer expense, while tax compliance issues remain unanswered, with the Auditor-General recommending the corporation ensure it has met all tax reporting requirements.

It comes as an independent MLA says the public deserves an explanation concerning the latest fiasco at the troubled corporation that has been mired in controversy since the beginning of the year, involving unresolved allegations of mismanaged conflicts of interest, misuse of taxpayer funds, cronyism, nepotism, widespread governance failures and an unusual overlap of board and executive positions.

However, the Waterfront Corporation board – that includes NT Under Treasurer Timothy McManus – has joined the CLP Government and Mr Shields in refusing to comment on the free parking matter or offer any public comment, rejecting calls for transparency.

Chief Minister Lia Finocchiaro deflected questions to Tourism Minister Marie-Clare Boothby on Friday, but Ms Boothby’s office has repeatedly refused to comment or explain if any investigation or review has been ordered to ensure the corporation has met its fringe benefit tax obligations to the Australian Taxation Office.

The NT Independent revealed last week that Mr Shields has been using two car spaces to park his red and orange Mercedeses since at least January 2021, with a picture from that time also showing his wife Sibylle Brautigam’s car parked in another space at the carpark. The cars were still there as of last week.

The going rate for the public to park at the Waterfront carpark is $33 for 24 hours.

The former chair of the DWC board, Richard Fejo, said he was never made aware of any arrangement between Mr Shields and the DWC regarding free parking for the vintage cars.

Current chair Pat Bellot, who was appointed to the board by the CLP last December through an unadvertised process, has also refused to comment or explain if the corporation has paid fringe benefit taxes on the two car spaces for the last six financial years, which could add up to hundreds of thousands of dollars.

Mr McManus, the Under Treasurer, has also not responded to repeated questions.

“Transparency and accountability are fundamental principles of good governance,” said independent Member for Johnston Justine Davis.

“The Darwin Waterfront Corporation should be able to provide straightforward answers about parking arrangements, FBT compliance, and board oversight of executive benefits.

“If the former DWC chair states he had no knowledge of reported parking arrangements, who did know? Did the board know? Were appropriate fringe benefits tax obligations met?

“The community is entitled to know that public assets are being properly managed and that all tax obligations are being met.”

Chief Minister Lia Finocchiaro’s husband Sam Burke, who is the deputy chief executive of the Waterfront Corporation, also did not respond to questions about his knowledge of Mr Shields’s use of the carpark for personal purposes and if the DWC had paid FBT.

Ms Davis raised last year’s NT Auditor-General’s office’s report that found various NT Government departments were not paying FBT on free car spaces provided to staff at the State Square underground carpark, including the Department of Chief Minister, which the report found had failed to pay more than $700,000 in FBT.

The departments said at the time they were in the process of paying back the FBT to the Australian Taxation Office.

“Given the Auditor-General’s 2024 findings regarding unpaid FBT at State Square, it’s reasonable for Territorians to expect clear answers about tax compliance at the Waterfront Corporation, particularly given it receives more than $25 million annually in public funding,” Ms Davis said.

DWC’s FBT issues may be subject of audit: AG

Auditor-General Jara Dean said his office did not specifically look into FBT obligations when reviewing the annual financial statements of the Waterfront Corporation, given it was unlikely to result in a large enough misstatement to materially affect the financials on any particular year, but cautioned the DWC should ensure proper reporting obligations are met.

“Even though the [DWC] was not subject to the desktop analysis performed by my office to determine whether accurate calculation of FBT had occurred for employees of selected agencies using the State Square car park, I would expect all public sector entities who provide parking benefits to their employees to self-assess against the findings to identify and rectify any instances of potential non-compliance,” he said.

Mr Dean added that while the Auditor-General’s office does not investigate identified or suspected fraud, the DWC’s FBT obligations may be subject to an upcoming audit.

“The recently published plan of work does not include an audit of compliance with FBT obligations, however I may consider the matters raised in planning the 2025-26 financial statements audit of the Darwin Waterfront Corporation.”

Mr Shields’s red Mercedes was featured in a recent episode of Four Corners titled “Losing Streak”, in which the flagship ABC investigative program aired a report into the failures of the NT Racing and Wagering Commission, chaired by Mr Shields, to hold Australia’s $50 billion online gambling industry accountable, given its lack of staff and perceived conflicts of interest between some of the commission’s members and industry.

Mr Shields was seen fleeing questions in the red Mercedes that originally stalled a couple of times before he was able to flee the Four Corners reporter’s questions about his own perceived conflicts of interest.

While Ms Boothby originally claimed the Department of Tourism and Culture were investigating the allegations raised in the Four Corners report, she last week claimed it was “just business as usual” and that the commissioners were doing “really well”.

Mr Shields is paid $116,000 for just two days a week of work at the Darwin Waterfront Corporation, while also collecting another $65,000 annually for sitting on the board of the AustralAsia Railway Corporation. Mr Shields also draws undisclosed remuneration for sitting on seven other boards and committees, including the Racing and Wagering Commission, the Legal Practitioner’s Disciplinary Board and the Racing Appeals Tribunal.