NT Parliament axes inquiry into 20 years of political donations including Foundation 51

The NT Government has been accused of covering up alleged corrupt and illegal activities after it rescinded a motion that allowed for the creation of an inquiry into the last 20 years of political donations.

It has also announced a different investigation into current donation processes, saying the historical inquiry was unwieldy and unworkable.

The motion, unexpectedly passed by Parliament in August, exposed the Country Liberal Party (CLP) to an investigation into links between the party and an organisation alleged to be a slush fund, Foundation 51.

Since then emails obtained by the ABC suggested private company Foundation 51 spent $200,000 on the CLP election campaign without declaring it.

NT Chief Minister Adam Giles had indicated the Government would go ahead with the inquiry, but today in Parliament Attorney-General John Elferink called for the motion to be rescinded and replaced with "an alternative means of independently investigating political donations".

"I further move that this Parliament suspends standing orders pursuant to standing order 306 so as to allow a motion which rescinds the motion of Mr Wood the Member for Nelson on the 20th of August 2014 under the Inquiries Act relating to political donations," he said.

Opposition Leader Delia Lawrie said the CLP was just trying to conceal its own alleged illegal activities.

"Is Adam Giles trying to distance himself from something that he knows is illegal?" she said. "Well, here we have it today - suspension of standing orders so that you can cover up, cover up the activities of Foundation 51."

"This is truly a dark day in the Territory Parliament, a truly abhorrent, abhorrent day.

"Today your actions scream that you are covering up corrupt and criminal behaviour, it is disgusting, the Territory deserves better than this."

Long-standing independent and Nelson MP Gerry Wood, who was the author of the motion in August, told Parliament he felt he had been "taken for a fool" by the CLP.

"It's just a smokescreen for what really is a government trying to hide itself from public scrutiny which is what this inquiry is about," he said.

"Its a dreadful day for Territory democracy, and to put it bluntly, it stinks.

"The inquiry that's being put forward by the Government is just piss weak."

Investigator to focus on current donation processes: Giles

While Parliament was debating rescinding the motion, Mr Giles said in a statement the Government was moving to appoint a "Special investigator to look into current donation processes".

He said the investigation into 20 years of donations, as described by the motion, was "unwieldy" and "unworkable" and would cost taxpayers "tens of millions of dollars".

"Information of this nature is not kept for that long," he said.

"It would be impossible for any party to comply with the inquiry's demands for documentation over two decades.

"It would take years and require dozens of investigators to pursue scores of current and former members of the Legislative Assembly, demanding documents dating back as far as 1994."

He said the investigator would make recommendations for improving donations transparency and accountability in a report in February next year.

The investigation would be administered by the Department of the Chief Minister.