Charles Darwin University has appointed a qualified person as its next Chancellor, with former chief justice Trevor Riley being selected by the university’s council.

Mr Riley will replace outgoing chancellor Paul Henderson, who used the position for six years to further his personal business interests through his consultancy company Bespoke Territory.

Mr Riley said it was an honour to be appointed as Chancellor and that he intends to “solidify” CDU’s role as the University of the Northern Territory amid “challenging and uncertain times”.

“CDU is a vibrant and exciting university,” he said in a statement.

“I look forward to working with the vice-chancellor and the university council during these challenging and uncertain times that will concurrently present opportunities for the sector.

“Charles Darwin University is critical for education, training and research in the Northern Territory. It is highly respected within Australia’s degree and vocational education sectors and attracts international students worldwide. I am committed to building on these foundations and ensuring that the University continues its strategic mission.”

Mr Riley will commence the role on July 1, 2025.

CDU announced in September that Mr Henderson did not seek a third three-year term as chancellor and will officially leave the role in March.

Mr Henderson came under scrutiny for his secret gas industry client list after a disastrous appearance at the Senate hearing into the proposed Middle Arm industrial precinct by vice-chancellor Scott Bowman, who had written an unsolicited submission to the committee stating that CDU backed the Middle Arm project, then tried to silence academics at the university who voiced their dissent, which violated the university’s academic freedoms policy.

Mr Bowman also failed to disclose the university’s “cozy” ties to the gas industry and the money it provides the uni, as well as Mr Henderson’s connections to major gas companies through his consultancy firm.

Mr Bowman is also facing resentment and anger from staff after announcing in one of his infamous “weekly musings” emails last month that the university’s “finances lie in ruins” with a potential “bloodbath” of staff sackings on the cards, and then announcing he was taking extended Christmas leave starting in November.

He had previously downplayed any sackings and argued publicly the university’s financial position was still strong despite posting an $18 million deficit last financial year.

The financial problems are due to Mr Bowman’s strategy to focus solely on increasing foreign students to CDU, that did not go as planned because of a number of federal issues, and has left the university struggling to pay back the $151.5 million loan to build its city campus.

The university said on Monday that Mr Riley brings “extensive governance experience” to the Chancellor role, having been the chair of various organisations, including the Menzies School of Health Research, judicial appointments panel, the legislative review of the NT’s alcohol policies, and the NT Electoral Redistribution Committee. He was also on the Brown’s Mart community arts board, the AFL NT appeals board and a long-term board member of St John Ambulance.