A review of ATSIC was commissioned in 2003. The report was titled In the Hands of the Regions: A New ATSIC and it recommended reforms which gave greater control of ATSIC to Aboriginal and Torres Strait Islander people at a regional level. At the time, Indigenous Affairs MinisterAmanda Vanstone stated that the review had concluded that ATSIC has not connected well with the indigenous Australians and was not serving them well. In 2003, ATSIC became embroiled in controversy over litigation surrounding its chairperson Geoff Clark, relating to his alleged participation in a number of pack rapes in the 1970s and 1980s. ATSIC was also investigated for financial corruption, and the embezzlement of ATSIC's funds, that were originally intended for service delivery to help Aboriginal peoples. Soon after this the Howard government began to remove some of ATSIC's fiscal powers, which were transferred to a new independent organisation, Aboriginal and Torres Strait Islander Services. The government ultimately suspended Geoff Clark as Chairperson of ATSIC in 2003. After a court appeal Clark was briefly reinstated. In the same year, Clark was arrested for brawling in a Victorian bar.
Abolition
For some time after Geoff Clark's appointment, the Howard Government had been expressing doubts as to the value of continuing to have ATSIC at all. Following Mark Latham's election to the leadership of the Opposition in December 2003, Labor also accepted that ATSIC had not worked. In March of election year 2004, both parties pledged to introduce alternative arrangements for Indigenous affairs. The government's plan was to abolish ATSIC and all its regional and state structures, and return funding for indigenous programs to the relevant line departments. Labor's view was that ATSIC itself should be abolished, but many of the regional and state sub-organisations should be retained, to continue to give Indigenous people a voice in their own affairs and within their own communities. It rejected the notion of merging indigenous funding into funding for Australians generally as 'tried and failed', but had not announced its alternative proposals. John Howard announced the agency's abolishment on 15 April 2004 saying that "the experiment in elected representation for Indigenous people has been a failure". On 28 May 2004 the Howard government introduced into the Federal Parliament legislation to abolish ATSIC. After a delay the Bill finally passed both houses of Parliament in 2005. ATSIC was formally abolished at midnight 24 March 2005. The Office of Indigenous Policy Coordination was created within the Department of Immigration and Multicultural and Indigenous Affairs on 1 July 2004 "to coordinate and drive the Government's new arrangements in Indigenous affairs", and took on ATSIC's responsibilities upon its abolition. Following machinery of government changes, that office was transferred to the Department of Families, Community Services and Indigenous Affairs on 27 January 2006. The dismantling of ATSIC was seen by many commentators as harmful to Aboriginal people in Australia. In 2009, Lowitja O'Donoghue expressed her opinion that reform of the agency would have been better than establishing a new agency which has been costly and might suffer similar problems as its predecessor, such as nepotism. ATSIC was criticised by a government advisory panel in 2009 for having been dominated by males.
