The North Australian Aboriginal Justice Agency has rejected calls for the organisation to be shut down, arguing many of the criticisms of the legal service are "simply not true".

NAAJA, which is Australia's largest Aboriginal legal service, has faced allegations of financial mismanagement, along with staffing issues, the later resulting in the organisation being unable to take on any new clients from November last year.

However, NAAJA has said they are finalising specialist staffing arrangements before an anticipated March reopening of its Youth Court practice in Mparntwe (Alice Springs). This would be "closely followed" by resumption of adult services - likely to be in April.

"NAAJA is disappointed by ongoing false statements about its capacity to represent clients, which remains the agency's utmost priority," the organisation told National Indigenous Times on Wednesday.

The agency confirmed they were currently short-staffed but were still providing criminal law services to clients.

Principal Legal Officer Jared Sharp said more than 8000 Territorians were supported by the legal service last year, and that there is overwhelming demand for their help as a result of heavy policing.

"There is no denying that the organisation has been operating under strained resources as a result of a shortage of staff and an unprecedented demand for legal services, which led to the difficult but prudent decision in November to temporarily suspend the intake of new clients," Mr Sharp said.

"Despite this, our hardworking lawyers have continued to provide criminal law services to our clients and have continued to appear in court for existing clients every day."

Much criticism of NAAJA has come from opposition spokesperson for Indigenous Affairs, Jacinta Nampijinpa Price, who reiterated her attacks on the NT legal service by arguing it was no longer fit for purpose.

Senator Price, along with shadow Attorney-General Michaelia Cash, said officials from the Attorney-General's Department revealed NAAJA had only one of the 17 full time lawyers required for regular operations and only three short-term lawyers on call.

The two senators argued this made the position of NAAJA untenable, along with claims 75 Aboriginal Territorians have been left without legal representation, with 21 remanded in custody.

"21 Aboriginal Australians are on remand because of the failings of NAAJA," Senator Price said.

"For many Aboriginal Australians in the Top End, English is not a first language, they require public assistance, but they have been completely failed by NAAJA."

(Image:ABC News/Ian Redfearn)

NAAJA hit back, defending their reputation and arguing the attacks against the organisation were false.

"Last year, police conducted a thorough investigation into unfounded allegations against the chairperson and a senior staff member, resulting in no adverse findings and no further action," NAAJA said.

In December, NT Police said investigations into NAAJA Chief Financial Officer, Madhur Evans, had concluded, with no adverse findings or further action warranted against her or the organisation.

The organisation has also seen an exodus of lawyers from the organisation - including its most senior solicitor - and three different chief executives in less than 18 months.

This week NAAJA said they have initiated a plan, in partnership with Territory Criminal Lawyers, to assist people in custody without legal representation by providing lawyers for inmates in Alice Springs Prison.

Furthermore, the organisation announced they had procured lawyers on secondment from Victoria Legal Aid and the NSW Office of the Director of Public Prosecutions in order to meet staff shortages.

Two of these barristers are Julian McMahon SC and Ragni Mathur SC,with Mr McMahon noting NAAJA was currently performing "critical work".

"All day, every day, this extraordinary team is under pressure: working in a community where Aboriginal people are heavily overpoliced and overcharged, placing extreme pressure on clients, and their lawyers," Mr McMahon said

"This is not NAAJA's fault. The rhetoric in the media needs to tone down."

He also argued some of the commentary ignored the fact NAAJA Alice Springs was currently open and preparing Supreme Court trials, contests, and bails.

Senator Price has continued her calls for an Indigenous organisations audit, something she has advocated since being elevated to the Opposition front bench.

"This is precisely why [we] need a thorough investigation and audit, to find out exactly what went wrong, because the answers we were given today confirms NAAJA is no longer fit for purpose,' Senator Price said.

A spokesperson for the Attorney-General's Department told National Indigenous Times they were "greatly concerned" by service reductions in the NT. NAAJA is currently contracted to receive $80 million over five years under the terms of the National Legal Assistance Partnership (NLAP)

The department had authorised the NT government to re-direct, if it sees fit, the funding to another front-line legal service for Aboriginal Territorians, such as the Northern Territory Legal Aid Commission, until issues involving NAAJA issues are "resolved".

"In the short-term, it is critical that necessary actions are taken to restore services in these areas," the spokesperson said.

National Indigenous Times understands NAAJA has been made aware of the NLAP funding changes and will be given a chance to argue for why funding should be maintained.