The Northern Land Council's finances will be examined in an audit amid allegations of the misuse of funds after the powerful Aboriginal authority held two days of tense meetings.
The Darwin-based NLC was ordered by Indigenous Affairs Minister Nigel Scullion to hold a meeting of its 83 members elected to represent the NT's Aboriginal people.
The NLC's nine-member executive or board - which is the subject of the allegations - and interim CEO, Jak Ah Kit, had been resisting the meeting.
Police were involved in removing former member Paul Henwood who refused to leave when asked.
The NLC, a federal statutory authority that represents indigenous people, resolved to have an independent forensic audit of its financial position.
Among the issues is that the NLC has leased its Darwin headquarters since 2007 from its own subsidiary the Aboriginal Investment Group for $1 million a year, compared to a market valuation that it should pay $685,000 to $710,000.
Also to be looked at will be a $4 million grant given to the NLC-owned Aboriginal Investment Group and numerous other loans between its entities whose board members are all land council executive members.
The NLC also provided loans totalling $345,000 to a company whose owner was an executive member.
One of the council members James Sing said many of the 83 members were worried about the alleged misuse of public money that was supposed to help Aboriginal people and the effects of the bad publicity.
He accused Mr Ah Kit - who was the first indigenous minister in the Territory's history - of bullying other members to the point where they could not ask questions and left in anger.
"We want to make a difference and show them (public) that we are competent in making our own decisions," he told reporters.
"I think there are some very serious questions and we as a land council and members need to demonstrate that with the responsibility placed upon the members and the wider use of public monies that we are accountable."
"What's being hidden?"
He pointed out that the now Aboriginal and Torres Strait Islander Commission was shut down over "misappropriation of funds and bad governance".
Mr Ah Kit became interim boss last month vowing to fix a crisis at the organisation that he blames on a poor culture among "highly paid" staff and not the board.
Joe Morrison was sacked as CEO last year and was the subject of misconduct allegations but some defend him saying he was trying to tackle the conflict of interest issues.
Mr Ah Kit welcomed the audit, saying the conflict of interest claims were wrong but that the "NLC and AIG are not afraid of change".
Senator Scullion said he had confidence in the land council to deal with any "mischief" and that as a federal authority it had to be respected
He would pay for but have no involvement in the audit, he said, which would recommend how to pursue the return of funds from organisations or individuals if that should occur.
