Fate of environmental law charity in hands of ACNC

The federal Shadow Minister for Resources, Senator Susan McDonald confirmed she had referred the group to the charities regulator, after claiming there was no place in Australia for charities to use “fake culture” as justification for stopping mining and gas revenue and jobs.

The EDO recently lost a $9.04 million Federal Court case it mounted on behalf of Tiwi Islanders against oil and gas giant Santos in a failed bid to stop the company’s Barossa offshore gas project.

The EDO describes itself as a politically unaligned community legal service that “runs bold and ground-breaking environmental cases to protect our natural world.”

In dismissing the EDO case against Santos, the court found that witnesses for the environmental charity had fabricated claims that a planned gas pipeline would interfere with underwater cultural sites.

Senator McDonald wants the ACNC to assess whether the EDO has complied with its tax-exempt charity status in the wake of the Santos ruling.

“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’,” said Senator McDonald.

She said the ACNC required all registered charities to “avoid serious risk to public trust and confidence in the sector.”

Senator McDonald said in accordance with its status as a charity, the EDO’s leadership was required 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.”

“The Federal Court has brought down a judgement that requires the EDO to make a $9.04 million settlement with Santos.

“That is almost the equivalent of the EDO’s entire revenue from donations and receipts which last year amounted to $10.3 million.

“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.”

Senator McDonald said the “delays and dishonesty” created by the EDO had severely undermined investor confidence in gas exploration and production.

In 2013 former prime minister Tony Abbott cut federal funding to the EDO, a move that was reversed by the Albanese government which committed to providing $8.2 million to the green law charity over four years.

The Peter Dutton led Coalition has vowed to defund the organisation if it wins power at the upcoming federal election.

EDO CEO David Morris shrugged off the referral to the charity’s regulator.

“EDO is a politically unaligned community legal service that proudly gives people the access to justice that is usually only available to the rich and powerful,” he said.

“It is Senator McDonald’s prerogative to make any referrals she deems fit.”

Morris recently confirmed the EDO had secured a $6.5 million lifeline to avoid bankruptcy following the failed $9 million legal action against Santos.

“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,” he said.

“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.”