An investigation is likely into one of the federal government's biggest land deals, the CSIRO giant Ginninderra Project, after the lead executive on the massive development program was sacked.
Labor is warning the high profile sacking could have serious 'downstream' implications for research into animal diseased that is vital to Australia's food production sector.
Sources close to the government organisations say the project, under the stewardship of former Mark Wallis, is now set to come under scrutiny after Mr Wallace lost his job at CSIRO over alleged "breaches" involving a corporate credit card.
The allegations against Mr Wallis are now being investigated by the Australian Federal Police.
Mr Wallis was the executive in charge of one of the federal government's biggest land deals, the sale of the CSIRO's 701-hectare field station on the ACT-New South Wales border to be developed for hundreds of houses.
The proceeds of the massive deal are meant to boost the CSIRO's research efforts with Labor saying some of the profits were slated to go to the Australian Animal Health Laboratories in Geelong.
Mr Wallis joined the CSIRO in 2011 after working as a property manager for the AFP and has held senior public sector roles for the past 17 years.
He is also a board member of the veterans' Charity Soldier On and helped set-up a partnership between the charity and the CSIRO that provided office and rehabilitation centres in Canberra, Melbourne, Adelaide and Perth.
A Soldier On spokeswoman said on Wednesday that the group's chairman Peter Leahy intended to "discuss the situation" with Mr Wallis but had not had a chance to do so.
The CSIRO confirmed that Mr Wallis was no longer employed by the organisation and there had been a breach of the CSIRO code-of-conduct in relation to "expenditure".
All staff at the organisation were warned that other "breaches" could also result in police referrals.
But CSIRO spokesman Huw Morgan brushed aside Labor's concerns on Wednesday.
"The Ginninderra initiative is proceeding on schedule and CSIRO will continue to maintain the high level of probity, good governance and due diligence of our management of it," Mr Morgan said
Science Minister Arthur Sinodinos would not answer questions on Wednesday but said in a statement that the CSIRO managed its financial affairs in accordance with Commonwealth rules.
"As a Commonwealth Government Organisation the CSIRO takes breaches of the CSIRO Code of Conduct seriously," the minister said.
"CSIRO continues to manage its internal affairs in accordance with appropriate legislation and the Public Governance, Performance and Accountability Act 2013."
Labor's science spokesman Kim Carr said Mr Wallis's sacking had worrying implications for the future of the Ginninderra scheme.
"I don't want to comment on matters under investigation," Senator Carr said.
"However, I am concerned about the policy implications.
"Any possible delay to the sale of Ginninderra has serious knock on affects.
"The proceeds from the redevelopment of this site was slated to go towards upgrades to essential national research infrastructure such as the Australian Animal Health Laboratories in Geelong.
"This could now be delayed or put a risk.
"This shows why we need a properly funded research infrastructure plan - not one where CSIRO's future scientific capability is dependent on the vagaries of the property market."
