The Abbott government faces another conflict of interest scandal after it was discovered that an adviser to the Indigenous Affairs Minister, Nigel Scullion, held a majority financial stake in a business that operated within the minister's portfolio.

Only months after the conflict of interest controversy that forced the resignation of Assistant Health Minister Fiona Nash's chief of staff, Alastair Furnival, Senator Scullion faces a similar problem in his office.

Questions: Indigenous Affairs Minister Nigel Scullion is working to ensure compliance with the code of conduct. Credit:Nigel Scullion's website

Under the government's strict rules, ministerial advisers – who have influence over government policies – must not be involved in businesses that could profit from ministerial decisions.

The minister's adviser, William "Smiley" Johnstone, is the majority shareholder of Indigenous Development Corporation (IDC), a property development business that is on two of the government's "standing offer" lists of favoured suppliers. Both lists relate to Senator Scullion's portfolio responsibilities.