Environmental Defenders Office referred to charity watchdog after Santos loss

Legal activist group the Environmental Defenders Office could be stripped of its charity status if a watchdog finds it breached public trust by coaching a witness against Santos.

The Environmental Defenders Office could be stripped of its charity status if the regulator finds it acted dishonestly and breached public trust in a legal challenge against oil and gas company Santos.

Shadow Resources Minister Susan McDonald referred the legal activist group to the Australian Charities and Not-for-profits Commission to assess whether it had complied with its tax-exempt charity status during a failed bid to stop Santos’ Barossa offshore gas project, on behalf of Tiwi Islanders.

“For a nation that takes our Indigenous cultural heritage seriously, we need to be equally serious about how we sanction those who confect and construct Indigenous cultural heritage – that’s called ‘fake culture’,” Senator McDonald said.

Senator Susan McDonald referred the EDO to the charities’ watchdog. Picture: NCA NewsWire / Martin Ollman

The charities’ watchdog requires all registered charities to “avoid serious risk to public trust and confidence in the sector”, and their leadership to “act with reasonable care and diligence; and to act honestly and fairly in the best interests of the charity and for its charitable purposes”.

Senator McDonald said she wanted the Commission to investigate whether the EDO breached those governance standards.

“I think the findings of the Federal Court coupled with the size of settlement, warrant a full investigation of the charity by the Australian Charities and Not-for-profits Commission. That is why I have made the referral,” she said.

The Federal Court, in dismissing the case brought by the EDO against Santos, found witnesses for the EDO fabricated claims a planned gas pipeline would interfere with underwater cultural sites.

Santos was awarded a $9.04m settlement, and the coalition has confirmed it would strip the EDO of its Commonwealth funding if elected.

Protesters gather at the front of the Federal Court of Australia during the EDO’s failed legal challenge against Santos. (Photo by Tamati Smith/Getty Images)

The EDO annual financial report, published Friday, paints an uncertain picture for its ongoing solvency, with a $8.6m loss and a $3.7m net debt.

In a statement, chief executive David Morris said the office would be able to continue its work “business as usual”, and its Santos costs had been paid in full.

“No government grants will be used to meet the debt and the EDO’s ability to meet grant commitments will not be impacted,” he said.

“Over recent months, the directors conducted extensive due diligence to confirm EDO’s status as a going concern and to ensure the organisation is able to plan for business as usual.

“The EDO has been providing public interest legal services to the community for over 40 years and the role it plays in Australia’s democracy has never been more crucial.

“Without a well-funded EDO, community groups without access to funding and resources would struggle to assert their rights to keep the climate safe, defend culture, and protect the species and places they love in the face of well-funded corporate interests.

“There are some very powerful forces, here in Australia and abroad, who would be delighted if the EDO ceased to exist.”

Originally published as Environmental Defenders Office referred to charity watchdog after Santos loss