Terry Mills held 'directorial role' in Foundation 51 while NT chief minister, emails claim

Explosive emails obtained by the ABC claim that in 2012 the Northern Territory's then chief minister, Terry Mills, secretly held "a directorial role" in Foundation 51, a company that its opponents say is a private "slush fund" for the Country Liberal Party (CLP).

The email chain from November 2012 documents a heated exchange between the director of Foundation 51, Graeme Lewis, and the newly-minted CLP president Braedon Earley.

Responding to questions from Mr Earley about the purpose of Foundation 51 and who controls it, Mr Lewis wrote:

"I am the sole director and shareholder, with Terry Mills for obvious reasons, not appearing on the registers, but adopting a directorial role throughout.

"As you very well know, it was set up for, and supported by numbers of business people and has necessarily had to operate absolutely separately from the Party in order to keep its activities away from public scrutiny."

Foundation 51 Pty Ltd is currently under investigation by the Australian Electoral Commission (AEC) after allegations were made in May this year about its links to senior members of the CLP and its involvement in the Blain by-election – Ms Mills' former seat.

Senior figures in the party, including current Chief Minister Adam Giles, have repeatedly denied any knowledge of the activities of Foundation 51 and their links to the NT Government.

Mr Lewis has told the ABC he had "no intention of providing further oxygen to the mischief being created in this matter".

He also said the foundation's "business has ceased totally" and the company was being wound up.

Mr Mills also declined an interview, although he denied he had any kind of "director role" at Foundation 51.

"Irrespective of what some email may or may not suggest I have never been nor was ever regarded as a director," Mr Mills said in a statement.

Early this year he was appointed as NT’s Commissioner to Indonesia and ASEAN, based in Jakarta.

Mr Earley did not return calls from the ABC.

Foundation 51 money for 'election purposes'

The revelations come as governments in New South Wales, Queensland and Victoria also defend allegations of inappropriate fundraising activities and donations for legislation.

Mr Lewis' emails appeared to confirm that Foundation 51 received donations to be used for election campaigns.

In one email addressed to party director Tory Mencshelyi and dated November 22, 2012, Mr Lewis writes of Foundation 51:

"...its funds are a matter for the members [of Foundation 51] who have contributed those funds primarily for NT election purposes."

Under state and Commonwealth electoral laws, failing to declare indirect donations made to a political party is illegal.

The correspondence, which stretches over four days, is also addressed to Mr Mills, current party president Ross Connolly and current vice-president Daniel Davis.

In May this year Mr Lewis told the ABC in a statement: "Foundation 51 is simply a supporter of the CLP in political terms as are many other business organisations in the NT and has no financial relationship with the CLP."

Not a matter for me, says Giles

In a short statement to the ABC on Thursday, Mr Giles appeared to try and distance himself from the controversy.

"Any involvement Terry Mills, Graeme Lewis and James Lantry may have had setting up this private company is a matter for them to respond to," Mr Giles said.

Mr Lantry is a former Foundation 51 director and a former chief of staff to Mr Mills.

Mr Giles has in the past defended the party's links with the foundation in Parliament after Palmer United Party MLA, Alison Anderson, described the company as a "slush fund".

"Foundation 51 is a private company, I have no association with that, neither do any of the members of my Country Liberal Party," Mr Giles said on May 7.

However, in another email dated March 26, 2014, Mr Lewis revealed he had discussed the foundation with Mr Giles:

"He and I have on many occasions discussed the matter of the Foundation, and he is well disposed to having the Foundation continue its activity with the wall between the entities currently fixed in place ... the Foundation has already contributed significantly towards the activities of the Blain by-election. In retrospect – not clever in view of this current interrogation!"

NT Opposition MP Ken Vowles used Parliament to compare Foundation 51 to the NSW Liberal Party consultancy Eightbyfive, which was investigated by the state's Independent Commission Against Corruption (ICAC).

Eightbyfive ran a trust fund that funnelled about $400,000 in illegal donations to various NSW Government MPs.

The revelations claimed the scalps of senior minister Chris Hatcher and two other MPs.