Aboriginal leaders have criticised the South Australian governments inquiry into governance standards of Indigenous community-controlled organisations in the state.

The inquiry will review the accountability, transparency, cultural authority and financial records of organisations.

A group of 12 First Nations leaders penned a letter to the government to oppose the inquiry last week.

Prominent South Australian Leaders including Kaurna man Jeffrey Newchurch and CEO of Native Title Services Keith Thomas, are among the signatories.

Keith Thomas spoke to NITV about the inquiry and says it could damage reputations and communities.