Aboriginal leaders on South Australia's remote Anangu Pitjantjatjara Yankunytjatjara (APY) Lands should consider suspending their manager Richard King while an investigation is carried out into the use of Commonwealth funding, an independent report has found.

Key points: A conciliator was appointed by Premier Steven Marshall following an application from three traditional owners of the APY Lands

A conciliator was appointed by Premier Steven Marshall following an application from three traditional owners of the APY Lands A report was tabled in Parliament today

A report was tabled in Parliament today It recommended the APY Lands manager be suspended while an investigation is carried out into the use of Commonwealth funding

Conciliator Jeremy Moore was appointed by Premier Steven Marshall, who is responsible for Aboriginal Affairs and Reconciliation, following an application from three traditional owners of the APY Lands in South Australia's north.

The three men, former APY chairmen Trevor Adamson and Frank Young, plus respected elder Murray George, asked for a conciliator to hear their complaints over the daily conduct of APY general manager Richard King.

These complaints included Mr King's decision to lodge a Supreme Court challenge against Mr Adamson and the state's Ombudsman Wayne Lines regarding an investigation into the functioning of the APY executive.

Mr King lost the appeal.

Mr Moore's new report noted the cost would fall on traditional owners and were "likely to be significant".

The APY Lands are home to some of the highest levels of intergenerational disadvantage in Australia.

Mr Marshall tabled the report in State Parliament today.

It is the first time this type of direction has been made under the Land Rights Act.

APY Lands manager Richard King. ( ABC News )

"In my dealings with APY matters, I have consistently recognised that over recent years it has been the strongly stated view of members of this Parliament that those living on the lands must be empowered to manage, use and control the lands as contemplated by the APY Act," Mr Marshall said in a statement.

"Accordingly, and as the conciliator has directed, arrangements are being made to enable the APY executive board to consider a response to the directions the conciliator has given to the board."

Mr King told the ABC "left wing" people had been working to destabilise the APY executive for a long time and, despite Mr Moore's report, he would see his contract through.

"I've been out there for four years now, and I'll continue to be out there for another two years until the end of this contract," Mr King said.

He criticised the decision by Mr Marshall to hand the report to Parliament before it was considered by the APY executive.

"They should be afforded the right to actually deal with any issues the conciliator thinks he may have come across before it goes to Parliament," he said.

No evidence court action was authorised

In his report, the conciliator noted there was no evidence that the elected board of the APY Lands had authorised Mr King to lodge Supreme Court action.

This was supported by evidence provided by the newly-appointed chairwoman of the APY board, Sally Scales, he said.

"It appears that someone other than the executive board gave instructions to file the notice of appeal with obvious issues of resources and cost liabilities for APY," Mr Moore said.

"That person, in my view, could only be the general manager or someone acting on his behalf.

"In my view the board is not functioning appropriately because the general manager has been allowed to act outside his role and duties…

"It is my opinion that the executive board will remain significantly incapacitated whilst Mr King continues as the general manager."

In his decision, Mr Moore directed that the next meeting of elected Aboriginal traditional owners consider suspending Mr King while there is an investigation into the use of Commonwealth funding by the APY executive.

His report was finalised on August 12, with the next APY board meeting scheduled for September 23.

Mr Marshall said a copy of the report had been provided to Ms Scales and the three applicants for the conciliation.

Continued instability

The conciliation places the spotlight again on APY, after almost a decade of instability in the management of the lands.

Mr King was first appointed as the general manager of the APY Lands in 2015 following a revolving door of general managers, with eight appointed over the course of five years.

At the time, hostile traditional owners called for the State Government to sack everyone and appoint an administrator to manage the area, some 105,000 square kilometres in the north of the state, and home to around 2,500 people.

Mr King was recently reappointed to his role for a three-year term.