Chief Minister Natasha Fyles has confirmed her senior adviser with ties to the gas industry is being paid taxpayer money to help her win the next Territory election through a murky contract, but claims “no rules have been broken”, while party members have called for a change of leadership to clean up the Territory Labor Party, following the scandals and recent polling that shows Labor losing the next election.

Ms Fyles and her senior adviser Gerard Richardson were this week referred for investigation into potential criminal conduct relating to allegedly “advancing secret personal interests” and other possible offences, in connection to Mr Richardson’s consultancy company acting as the lobbyist for gas company Tamboran Resources, as well as Ms Fyles’ breaches of the ministerial code of conduct for not immediately divesting her shares in gas giant Woodside Energy.

Party sources told the NT Independent that the focus on Ms Fyles and her connections to the gas industry were damaging the party’s credibility and that a change of leadership is needed if it had any hopes of winning next August’s general election.

“This is totally destructive to the party, it’s state capture by industry,” one party source said. “Donations, political advisers, politicians falling into good jobs when they leave, it’s too much.

“They don’t get it; they think this is how business is done, but … it’s state capture and bowing down to corporations.

“They seem completely unaware of the massive conflict of interest this has created. They’ve been lying to the people of the NT and Australia. It’s disappointing as a Labor party member. Democracy is dead in the Labor Party.”

Territory Labor’s left faction moved a motion to expel Ms Fyles back in August due to her pro-fracking stance, however it failed to get up. But the inner party turmoil led to Labor cancelling its annual conference back in October, then 10 months out from the election.

Another senior party figure said the Richardson contract was “the latest crisis in the ongoing train wreck eroding the Chief Minister’s leadership and the standing of the Labor Party”, adding the Jamie Chalker bungled sacking, failure to legislate alcohol bans in Central Australia after federal laws ended and misleading the community about the cost of repairs at the Howard Springs facility were just a few of the integrity issues faced by Ms Fyles.

“The lack of trust in the Chief Minister is irreversible,” they said. “Poor governance, ongoing ineptitude and contempt for probity generate momentum for a change in government.

“Territorians are sick of the lies and deception and have stopped listening. Labor branches know Fyles has been out of her depth from day one, as does caucus and Fyles. A real leader would quit for the good of the party.”

On Wednesday, Ms Fyles defended Mr Richardson’s role, while agreeing it did not “pass the pub test” on ABC Radio Alice Springs, but added to confusion about the nature of his contract through his lobbyist firm Brookline Advisory, which was referred to the ICAC earlier in the week and had previously been questioned by a leading integrity expert.

“Gerard is a contracted staff member, he provides me with strategic advice around communication strategy, speeches, social media,” Ms Fyles told ABC Radio Alice Springs presenter Stewart Brash on Wednesday.

She immediately contradicted herself, then stating that Mr Richardson was “not a staffer” when asked why her adviser would run a company that lobbies on behalf of a gas company.

“He’s someone that’s contracted to do specific work that is outlined,” Ms Fyles said. “He’s never worked for Tamboran, his company is based in Canberra.

“I agree with you in terms of [not passing] the ‘pub test’, but what I’m saying is when you go in and look clearly at the facts, he hasn’t worked for Tamboran, they [Brookline Advisory] haven’t done work in the Northern Territory with Tamboran. He’s got a very specific role within my team that he provides that support.

“So, he’s not someone who sits and provides everyday policy advice, but there have been no rules broken here and I find it a little ironic coming from Mark Turner.”

The pair were referred to the ICAC by former police officer and independent MLA Mark Turner, who also requested that the investigation include the “financial arrangements” between Ms Fyles, Mr Richardson and his consultancy company, which is listed on the federal lobbyist register as the main lobbyist for Tamboran, which has a stake in fracking the Beetaloo Basin and which was pledged government land at Middle Arm for an LNG facility one month after Mr Richardson started his role as adviser to Ms Fyles.

Ms Fyles personally cleared Mr Turner of any wronging in the so-called Labor cocaine sex scandal in October 2021, as chair of Parliament’s Privileges Committee. He was then kept in the party until Ms Fyles ousted him in February of this year, following his outspoken criticism of former police commissioner Jamie Chalker.

Ms Fyles also mocked the Redbridge polling conducted last month that showed Territory Labor’s support has plummeted to new lows that would see it lose power if an election were held last month, with only 19.7 per cent of Territorians polled saying they would support the scandal-plagued Fyles Government.

Meanwhile, CLP Opposition Leader Lia Finocchiaro said if her party is elected she would implement a lobbyist register for the NT, which is currently the only state or territory without one.

Ms Finocchiaro said the register would allow the public to keep track of how many times government ministers meet with lobbyists and record the names of lobbyists working in the NT.