There are calls for an inquiry into a $10 million taxpayer-funded investment in a Northern Territory bottled water company.

The NT parliament has heard the company is now broke and should be investigated by the Independent Commissioner against Corruption.

The now-defunct Infrastructure Development Fund gave a $10 million grant to Darwin bottled water producer NT Beverages, despite it being deeply in debt and near collapse at the time.

NT Beverages went into voluntary administration in December owing almost $500,000 more to government creditors.

It was the IDF’s only investment before being disbanded.

Independent MP and former NT Treasurer Robyn Lambley this week accused the NT Labor government of “corruption and collusion”.

She said Territorians deserve an explanation why the IDF, overseen by Treasurer Nicole Manison, made such a poor investment.

“The Gunner government ruled out referring the matter for investigation,” Ms Lambley said.

“That is $10.5 million in taxpayers money just out the door like it didn't exist, no responsibility, no explanation.

“To me that sounds like collusion, perhaps corruption, it sounds like it could be misconduct, it sounds like it could be unsatisfactory conduct.”

The criteria for investigations by the Office of the Independent Commission against Corruption includes corrupt conduct, misconduct or unsatisfactory conduct.

This happened on the NT’s first parliamentary sitting since the Labor government kicked out three of its own members for alleged disloyalty - former Primary Industry and Resources and Aboriginal Affairs Minister Ken Vowles, Scott McConnell and Jeff Collins.