The Prime Minister has left the door open for the removal of former attorney-general, and now Industry Minister, Christian Porter in his first public comments since the controversy erupted surrounding who paid for up to $1 million of his personal legal fees.
It comes as Labor leader Anthony Albanese described Mr Porter's position as untenable and he urged his immediate removal from the Morrison ministry.
"There is such a stench around this, and around Christian Porter, that all that is missing is a cloud of blowflies. This stinks," Mr Albanese said on Thursday.
Scott Morrison is seeking advice from his department about whether a decision by Mr Porter to accept mystery funds, as part of a blind trust, to pay part of legal fees for a now discontinued private defamation case against the ABC, and ABC journalist Louise Milligan, breached ministerial standards.
In a widely criticised move, the minister updated his register of members' interests on Tuesday to include the blind trust, but has not declared the parties involved in it. Mr Porter, through his office, has defended the move as not a breach of the rules.
Speculation is mounting that the minister could soon lose his portfolio as soon as Friday.
After issuing a statement on Wednesday saying he was "taking this matter seriously" and he had spoken to Mr Porter, Mr Morrison said on Thursday he was dealing with the matter with carefully.
"I take the matter very seriously. We're looking carefully at the arrangements, and what the minister would be required to do in order to ensure that he was acting consistent with the ministerial guidelines," the Prime Minister told reporters.
Mr Morrison did not expand further on what the minister could be required to do, but he pointedly did not answer questions about whether Mr Porter would remain on the front bench.
"I, as always, will ensure, I will work very carefully to ensure that the ministerial guidelines are adhered to," he said.
"I have taken decisions in the past, difficult decisions when I believe they haven't been adhered to and decisions that have been taken as a consequence of that.
"In the same way on these issues, I will follow the same process, I'll deal with it carefully, and as always I'll ensure that the ministerial guidelines are adhered to."
Former Prime Minister, and Christian Porter's former leader, Malcolm Turnbull says his actions are wrong, describing them as a "shocking affront to transparency".
"It's like saying 'My legal fees were paid by a guy in a mask who dropped off a chaff bag full of cash'," he tweeted.
Anthony Albanese wanted the minister to either step down or be moved.
"Christian Porter's position is untenable," he said.
"The fact is that the Coalition, are a living, breathing reminder of the need for a national anti-corruption commission.
"It is simply untenable for a minister of the Crown to receive up to a million dollars from sources, unknown, in order to pursue a private legal matter, and then say that he doesn't know where the money came from."
"You can't just take money as a cabinet minister from persons unknown and not declare it.
"Why the Prime Minister needs to have an inquiry on this is beyond me."
Mr Porter's office has not responded to questions from The Canberra Times about making any further disclosure about the blind trust, or whether he may move to pay back the mystery money.
A spokesman for the minister issued a short statement.
"The minister has undertaken disclosure in accordance with the requirements of the Register and consistent with previous members' disclosure of circumstances where the costs of personal legal matters have been mitigated by contributions or reductions in fees," he wrote.
"No taxpayers' funds were used in meeting the costs of the Minister's actions against the ABC and Milligan, which have now concluded."
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