Local community leaders and politicians are lobbying vigorously to reverse the decision.
Machado Joseph Disease is a hereditary degenerative condition prevalent amongst Aboriginal Australians in the Northern Territory.
The Central Land Council Chairman and Aboriginal Benefits Account Board Member Maurie Ryan has threatened Federal Indigenous Affairs MInister Nigel Scullion with legal action over the cuts to the Foundation.
“This is not money coming out of the taxation department, not monies coming from anywhere else – it’s coming from monies set aside for the most disadvantaged," says Mr Ryan.
Mr Ryan says if the Aboriginal Benefits Account's allocation of these MJD funds could be overturned so easily, then the decision making processes need to change.
He says money in the Aboriginal Benefits Account is made up of Northern Territory Land Council contributions.
Groote Eylandt, where the disease is most prevalent, is the biggest contributor through its mining royalties, says Mr Ryan.
"Theres no cure for it, it’s like the other diseases that are incurable around the world like AIDS and you could name a few others,” says Mr Ryan. “But this is, was on Groote Eylandt and people must know that.”
In a statement released to NITV, Coalition Minister Nigel Scullion blamed his Labor predecessor, Jenny Macklin who he says had authorised improper use of Aboriginal Benefits Account funds.
"The former Minister had made a number of unusual decisions for ABA funding that I was obligated to overturn,” says Mr Scullion. “This grant was for $10 million to invest so it could use the earnings to cover operational and other ongoing costs."
