EXCLUSIVE: Chief Minister Natasha Fyles breached her government’s own ministerial code of conduct by failing to divest her Woodside Energy shares, triggering calls for her resignation and an emergency Cabinet meeting to discuss her future as leader, the NT Independent can reveal.

Ms Fyles has found herself in the middle of a growing scandal around her shares in the major gas player that has interest in a proposed carbon capture and storage facility at the Middle Arm industrial precinct – the linchpin of the entire project – which Ms Fyles has made the focus of her government and promoted with taxpayer money.

While it was previously reported that the federal ministerial code of conduct forces federal ministers to divest their company shares, the NT Independent has obtained a copy of the NT Ministerial code of conduct dated July 2022, which contains the same provisions.

“Ministers must divest themselves completely of all shareholdings … in companies (both private and public) that may create a conflict of interest as a result of their portfolio responsibilities,” states the code of conduct in the Cabinet handbook.

Ms Fyles has repeatedly refused to divest her shares in Woodside, on Wednesday telling a press conference she had 169 shares in the company – valued at roughly $5,500 – that she will continue to keep so that “perhaps into the future … they might grow for the kids”.

“You know, going forward, I’ll certainly make sure that things are registered, that any conflicts will be managed and let’s see where those 169 shares go one day,” she said.

The code of conduct also specifically states that the shares cannot be transferred to dependent children or a spouse.

“[This] is not an acceptable form of divestment of shares or financial interests for the purposes of this code,” it states.

After being sent questions by the NT Independent about the failure to divest the shares and the breach of the ministerial code of conduct on Thursday, Ms Fyles’ office issued a public statement indicating that she has “taken steps to divest” her shares in Woodside, while also claiming she did not have “a conflict” and was only divesting to “end this distraction”.

However, under sections of the NT Government Cabinet Handbook – the rules governing ministers – Cabinet must take action in a case where the Chief Minister has breached the code of conduct.

The matter is to be referred to Cabinet “for discussion and determination as to what action should be taken”, which must include consideration of how the public will perceive the propriety” of the minister’s actions and could “require the minister to stand aside or resign”.

READ: Chief Minister’s private shares in major gas company revealed

READ: Fyles’ private shares in gas company to be probed at Senate inquiry into Middle Arm: Pocock

READ: ‘It’s just not right’: Fyles called on to divest shares in gas company by national integrity body

READ: ‘Nothing will stop me’: Fyles lies about Woodside shares disclosures, claims ‘grandma’ bought them as records show otherwise

Ms Fyles’ claims of divestment, follows a series of letters former Labor MLA and current independent Mark Turner wrote to all Cabinet members and others on Wednesday evening, calling for an emergency Cabinet meeting following Ms Fyles’ breach of the code of conduct.

“Given the Chief Minister’s public statements about retaining these shares for future familial benefit, we must critically assess whether these actions align with the Handbook’s guidelines,” he wrote.

“We must address this issue thoroughly, ensuring adherence to the principles of transparency and ethical conduct set forth in our guidelines. This may include discussing potential consequences, up to and including the Chief Minister’s resignation, to maintain the integrity of our government.

“The public trust in our leadership and the integrity of our governance are at stake.”

Mr Turner added that the matter also needed to be raised with the Prime Minister, as Ms Fyles sits on National Cabinet. He also wrote the Independent Commissioner Against Corruption about the breach.

Ms Fyles may also have breached another section of the Cabinet handbook involving declaring interests.

“Any matter which may give rise to a conflict between a Minister’s duty and interest, or a perceived conflict, must be declared,” it states.

It further states that ministers attending Cabinet meetings “must, in relation to the matters under discussion, declare any private interests which give rise to, or are likely to give rise to, a conflict with their public duties”.

Ms Fyles has refused to say this week whether she disclosed her conflict to her Cabinet colleagues at any time during Cabinet discussions about the gas industry or Middle Arm.

Breaching the ministerial code of conduct not the only set of rules Ms Fyles has run afoul of

Ms Fyles also appears to have violated the NT Legislative Assembly (Disclosure of Interests) Act, after she claimed on Wednesday that she had obtained shares in BHP from her grandmother in 1985 – that later became the Woodside share – and that she “declared these shares every year I’ve been in Parliament, exactly as I’m meant to do”.

The Register of Members’ Interests shows Ms Fyles did not claim any shares until after the 2020 election. She was first elected in 2012. The only publicly available records show she did not disclose the shares after being elected and made a minister for the first time in 2016.

Ms Fyles first declared the then-unknown number of shares in Woodside on her Register of Members’ Interests on July 7, 2022 – seven weeks after becoming Chief Minister – and the same month the latest NT ministerial code of conduct came into effect.

She is obligated under the Act to accurately and truthfully disclose any shares in a public or private company.

The Chief Minister is listed in the Cabinet Handbook as the first amongst equals, the figure who determines other ministers’ conflicts of interest. When that role is compromised, Cabinet needs to take action, according to the handbook. The penalties could include forcing the Chief Minister to resign and stand aside, publicly apologise or refer the matter to “an appropriate body for investigation”.

Former chief minister Michael Gunner followed the ministerial code of conduct after leaving office, waiting six months before taking a job with Fortescue Future Industries, which is specifically stated in the handbook.

Ms Fyles’ office did not respond to the NT Independent’s questions on Thursday, including why she did not divest the shares and why she has not followed the code of conduct.

Note: This story was updated to reflect Ms Fyles’ statement that she intends to divest the shares, which was issued after she was made aware of the breach of the code of conduct on Wednesday evening.