ABC presenter Virginia Trioli has been accused of bias against Scott Morrison after taking him to task during a fiery interview on Tuesday's News Breakfast show.
In a furious tirade, she accused the Prime Minister of being 'rather casual about accountability and transparency and seemingly unaccountable about value for taxpayer money.'
Mr Morrison defended himself, saying Ms Trioli was being 'over the top.'
The host was quizzing the PM over the government's decision to buy $80million of water in August 2017 from a company which was registered in a tax haven.
The company - Eastern Australian Agriculture - was founded by Energy Minister Angus Taylor and had donated $55,000 to the Liberal Party four years earlier.
The purchase was approved by then water minister Barnaby Joyce.
Mr Morrison said the deal was all above board and defended Mr Joyce by saying he 'relied on the advice provided by his department.'
'That department conducted those negotiations at arm's length and inquired into the relevant matters required,' he said.
'The minister has acted in accordance with the legislation.'
But Ms Trioli took issue with that explanation, saying Mr Joyce was intimately involved in the process.
'He put three conditions on the negotiations,' she said.
'He wanted advice on the impacts to employment in the region and then he wanted the department to "report back to me on this and seek financial approval before settling the purchase".
'Was it arm's length and not his job or did he want all this detail and this close involvement in the matter?'
Mr Morrison replied saying that level of scrutiny from a minister was normal.
ABC presenter Virginia Trioli took Scott Morrison to task during a fiery interview on Tuesday's News Breakfast show
He said: 'The very things you have talked about are the very things that are routinely dealt with under those buybacks, the same things that were dealt with…
'He was involved in it,' Ms Trioli interjected.
'Wouldn't you want to know what the impact on jobs was?' Mr Morrison retorted.
Ms Trioli again asked: 'In him wanting to know that, he was not involved at arm's length. Correct?'
Mr Morrison then switched his line of defence, saying that Labor made a deal with the same company when it was in power.
Labor has said their deal was different because there was a bidding process.
Mr Morrison said: 'He was dealing with a legal entity. There is no suggestion that the company that was involved in the transaction was not a legal entity.
'The Labor Party did a deal with the same company. There was no questions raised about the integrity of the company with which Labor did a deal.
'Why would there be questions raised if the Liberal Party does one? I am not sure what the double standard is there.'
Ms Trioli replied: 'I will share with you potentially another double standard there and that is the government's at pains to criticise Labor for everything but now you're prepared to rely 100 per cent on Labor and they are the font of all wisdom and truth when it suits you in this particular issue?'
'I'm not quite sure the accusation you're making there,' Mr Morrison said before Ms Trioli interrupted: 'You're saying Labor did it so therefore it is fine for the government to do it?'
'If you let me answer the question,' Mr Morrison said before insisting the plan to buy water was a bipartisan initiative and not the scheme of any one minister or government.
'Undertaking the buybacks are set out and administered by the department and done at arm's length. That has been done under both governments,' he said.
Mr Morrison (pictured on the show) said the deal was all above board and defended Mr Joyce by saying he 'relied on the advice provided by his department.'
Ms Trioli then quizzed him on the fact that the company in question - Cayman Islands registered Eastern Australia Agriculture - donated $55,000 to the Liberal Party in 2013.
She asked: 'We now learn that the company at the centre of that buy back, Eastern Australia Agriculture, donated $55,000 to the Liberal Party before the 2013 election. Does that cause you discomfort today?'
Mr Morrison replied: 'It is a fully disclosable donation. Donations are disclosable in Australia. There is no evidence to suggest that played any role in this arrangement.
