Independent Mparntwe/Alice Springs community school Yipirinya School has dismissed their principal.

The school's statutory manager, Stuart Reid, director of Rodgers Reidy (NT) Pty Ltd, issued a statement late on Tuesday.

"DTBAR (Department of Trade Business Asian Relations) engaged me as statutory manager to implement the recommendations of the special investigation report and undertake the necessary steps to ensure the association and school is viable into the future," he said.

"After careful consideration, today the employment of the school's principal was terminated. An Interim Principal will commence at the school tomorrow for the remainder of the year, with the appointment of a principal for 2026 expected to be announced as soon as possible."

Mr Reid's statement said the federal and Territory governments "remain committed to working with the school to ensure it remains open and continues to deliver culturally appropriate teaching and learning programs".

"Dedicated Yipirinya School teachers and support staff remain in place to support families and will continue to deliver teaching and learning for children at Yipirinya School Monday to Friday," he said.

Yipirinya Council had worked with the DTBAR to request a statutory manager be appointed prior to Mr Reid taking on the role.

Outgoing Yipirinya principal Justin Colley inherited a school in crisis, with his predecessor, Gavin Morris, found guilty in October on four counts of aggravated assault, including choking one student, holding another in a chokehold, and dragging two pupils by their ears. Alice Springs Local Court Judge Anthony Hopkins also found Morris directed racial slurs at students during two of the incidents.

Yipirinya, a school for over 300 Indigenous students in both primary and secondary, has also seen dwindling attendance.

In a statement posted on social media several days after the verdict, Yipirinya School said the court case related to "events that happened under a previous leadership between 2021 and 2024," and that they do not "reflect the values, culture, or current practices of Yipirinya School today".

"Over the past 12 months, we have seen a great turnaround," the statement, signed by Mr Colley, said.

"The school has made significant progress in making the school a safe place for its students and staff, focusing on whole-school safety and wellbeing, teaching and learning, and improved community trust."

Yipirinya, an independent school for Indigenous children, was founded by Elders in the late 1970s and is one of a small number of schools nationwide where four Aboriginal languages are taught alongside the Australian Curriculum in a unique two-way learning method.

A report commissioned by the NT Registrar of Non-Government Schools in 2024 probed the finance, governance, teaching, learning, student safety, and workplace-culture complaints; including concerns involving Mr Morris.

The report made 26 recommendations. Until Tuesday night, when a leaked copy of the report was tabled in NT Parliament by Member for Gwoja Chansey Paech, only three of the recommendations were publicly known: Recruit an experienced principal with strong leadership skills; review and rewrite key policies to reflect parent and caregiver expectations; and improve financial management and HR practices.