I've completed the quests that reveal they are working as spys for the Temple, and being a good aligned party, with a Paladin as leader, I expected to be able to wipe their evil buts from the face of the planet! However the game seems to give me no option to do this, unless i'm missing something.
After refusing their puny attempt at a bribe (+1 shortsword indeed!) I traveled back to see Burne but am given no option to even inform him of the situation, same with the Cuthburt mob. So in the end i simply attacked and killed them, a tough fight but well worth the xp and loot.
Now however i'm worried that I may have ruined some later quest that might involve them. Luckily I have a save just before i attacked them, so can anyone tell me (without spoiling any of the later parts of the game) whether im free to do this, or does my paladin have to turn a blind eye, and perform much pennance for letting the evil scum continue to opperate