Treasurer Eva Lawler is the Territory’s next Chief Minister in a surprise move that will see Attorney General Chansey Paech become the new Deputy Chief Minister.

Ms Lawler issued a statement late Wednesday to say caucus selected her in a “unanimous decision” at a meeting this afternoon.

Former deputy leader Nicole Manison, who had officially announced her intentions to run as leader in a statement on Tuesday, will move to the backbench with her political future uncertain.

“We thank Nicole for her hard work over the last seven years in Cabinet, and the work that she has put into growing the Territory’s jobs and economy, Nicole will continue to serve her constituents as the Member for Wanguri,” Ms Lawler’s statement said.

Natasha Fyles resigned on Tuesday following a series of stories in the NT Independent over the last month about secret shares, undisclosed conflicts of interest and questionable hiring practices of advisers with links to the gas industry.

The resignation kicked off factional infighting in Labor for the leadership role, with many names including Mr Paech, Ms Manison, and Joel Bowden, all touted as contenders. Party sources had said earlier on Wednesday that the leadership process had become “messy” and led to political instability.

It emerged on Tuesday night that Eva Lawler had sought support from her colleagues without the right faction’s support for a ticket that would see her as chief minister with Mr Paech as her deputy. The unions stepped in and moved to support Mr Bowden for the top job, throwing their weight behind him, but it appears that was not enough.

As sources told the NT Independent, Mr Paech had the support of the Indigenous members to make the Lawler-Paech leadership ticket a reality.

The decision to choose Ms Lawler as Labor leader is surprising and many political observers were at first incredulous. But others in the party told the NT Independent she was the most qualified member who was not seen as being part of the Michael Gunner-Nicole Manison- Natasha Fyles circle of power that has dominated the party since it was in opposition and through the tumultuous years in government.

It’s likely that Ms Manison and Ms Fyles will not recontest at the next election, party sources said, ultimately ending their political careers.

Ms Manison would not confirm her political future Wednesday evening, issuing a statement on Facebook to say while she received “very strong support to run as Chief”, she was instead supporting Ms Lawler.

“I know she will be an amazing new Chief,” Ms Manison said, adding she would remain the Member for Wanguri for now, but did not say if she would recontest at the August election. She also thanked her friends for their support and stated she was looking forward to putting her family “first”, just one day after stating she wanted to be chief minister.

Ms Manison was first touted as Mr Gunner’s successor, but that plan was thwarted in the caucus room in May of last year when Ms Fyles was selected by caucus. On Tuesday, Ms Manison issued a statement while on holiday in Bali that political figures said was tone-deaf and poorly timed, given that she aligned herself with Ms Fyles, who had just resigned in disgrace.

Party sources also said it was politically naive of Ms Manison to issue the statement appearing to suggest she was the rightful inheritor before she had the numbers in the party room.

“That was a dumb move and would have angered caucus with its arrogance,” one party source told the NT Independent.

The source also said recent poor polling figures and a desire to wipe the slate from the “disastrous Gunner years” would have also driven caucus members to back Ms Lawler and Mr Paech, as well as anger over the recent Cabinet reshuffle, their own “self-interest” and different political deals made in the caucus room.

Lawler may or may not be under investigation by the ICAC

Ms Lawler has served as a minister in different portfolios since 2016, including most recently in Education, Infrastructure and as Treasurer.

She oversaw the construction of the infamous Cavanagh Street shadeless shade structure as infrastructure minister and consistently defended it, even when experts said the vines planted were incorrect and would not have the desired effect of providing shade.

Ms Lawler has recently shown an angry streak in Parliament, where she was extraordinarily kicked out of the chamber during sittings late last month for an explosive tirade against the Opposition about drinking high-end champagne. That saw Labor members attempt to undermine Speaker Mark Monaghan’s ruling in a first for the NT Parliament.

As Treasurer, Ms Lawler most recently oversaw the Territory’s deficit this year more than double what the Labor Government claimed in May, with net debt also expected to continue to increase to $10.2 billion in two years, according to the mid-year fiscal report released last month.

In October, Ms Lawler erupted in Parliament when asked to verify previous claims that nobody in the Labor caucus is currently under investigation by the ICAC, which she said is a fact because she asked her colleagues “in passing in the lobby” and nobody said anything.

“I’ve had to, a number of times, been investigated. Nothing has actually ever come back around that. So, no, I’m not being investigated by the Commissioner. If I am he hasn’t told me,” she said.

However, Ms Lawler’s previous inquiries may not be concluded.

ICAC Michael Riches said in March 2022 that he had launched an investigation into the government’s handling of the unresolved safety issues at TIO Stadium, which followed Ms Lawler issuing a special ministerial order to exempt the building from requiring an occupancy permit, while he was making preliminary enquiries. That investigation has not been resolved.