But she said she still supported the Adani project and its jobs. With the government in caretaker mode after the election was called on Sunday, Mr Nicholls would need to support her veto decision of the NAIF loan for it to take effect. Mr Nicholls said he knew nothing about the rumours the Premier mentioned. "I heard about them through the media just like thousands of other Queenslanders," he said. Opposition Leader Tim Nicholls says the Premier should pass through the Adani loan, if approved by NAIF.

Mr Nicholls also said he did not know anything about Mr Drabsch's work. "I have met him at a number of functions, he seems like a nice bloke and deserves to earn a living just like all Queenslanders," he said. Loading Mr Nicholls questioned why the Premier was changing her mind if all the necessary conflict of interest measures were above board. "Given the NAIF loans are an independent federal process and state governments have a constitutional role to pass through the loan, what's the problem?" he said.

"The Premier should honour her word and pass through the Adani loan if the independent NAIF makes such a decision." It was understood the move would not necessarily stop a NAIF loan to the Adani mine, as it could be granted via a different process, but it would remove the Queensland government's involvement. But federal Resources Minister Senator Matt Canavan claimed it was incorrect to suggest the federal government could fund a NAIF project without the cooperation of the state government. "Under the rules, a state must sign the NAIF project finance project with the project proponent and have a role in management of the loan," Senator Canavan said. Section 13(1) of the Northern Australia Infrastructure Facility mandate direction compels the NAIF Board to commence discussions with the relevant state as soon as possible on receiving an application, and states have a significant role, particularly in the investment decision and executive stage.

The NAIF board will only approve projects where there are no objections by the state or territory. Senator Canavan said he was unaware of the rumour allegations prior tothe Ms Palaszczuk's statement. "Thousands of jobs in northern Australia are being put at risk because of gossip," he said. Announcing her decision, Ms Palaszczuk said she and her partner had done everything "by the book", and released a series of letters between herself, PwC, her director-general and the Integrity Commissioner. A letter dated June 16, 2016 from PwC managing partner Paul Lindstrom confirmed Mr Drabsch would "not be involved in any engagements with the Queensland government, its agencies or personnel on behalf of PwC".

A July 17, 2015 letter from Queensland Integrity Commissioner Richard Bingham "agreed no conflict is likely to arise". On November 1, 2017, Ms Palaszczuk told Commissioner Nikola Stepanova that Mr Drabsch had told her chief of staff that he had been providing advice and support to proponents seeking loans from NAIF. "Given that there may be a perceived or actual conflict of interest arising from Mr Drabsch's involvement through his advisory role on NAIF projects, I intend to exclude myself from any deliberations, including those before CBRC where he, or PwC has been involved," Ms Palaszczuk wrote. "I seek your advice regarding the appropriateness of this action and any other strategies you recommend." On November 3, Dr Stepanova wrote that based on the information provided, a reasonable member of the public would perceive a conflict of interest between Ms Palaszczuk's duties as a member of the CBRC and the business dealings of MrDrabsch.

Dr Stepanova recommended Ms Palaszczuk exclude herself from CBRC meetings related to NAIF projects at the investment decision and execution stage. Friday's announcement was met with approval from conservation groups opposed to the Adani mine. The Australian Marine Conservation Society's Imogen Zethoven said Ms Palaszczuk's decision showed she had recognised the concern felt by people about the Adani coal project. Australian Conservation Foundation chief executive officer Kelly O'Shanassy said it was vitally important Mr Nicholls committed to also veto the loan. "This is a great moment for Australians that support clean air, clean water and a safe climate," she said.