From CTV News:

Andrea Janus, CTVNews.ca

Date: Wed. Nov. 30 2011 10:09 PM ET

The federal government is placing the northern Ontario First Nations community of Attawapiskat under third-party management in an attempt to get to the bottom of what happened to millions of dollars in funding, and to ensure future funds go to those in need.

The isolated community near James Bay has declared a state of emergency as many families in the community prepare for winter with little more than un-insulated shacks, tents or mould-infested houses to keep out the cold.

Under fiery criticism from NDP interim leader Nycole Turmel in question period in the House of Commons, Aboriginal Affairs Minister John Duncan said Wednesday the federal government is appointing someone to take charge.

"The on-the-ground assessment has determined that urgent health and safety issue demand immediate action. Therefore we have informed Chief Spence we are placing the first nation in third-party management," Duncan said.

Prime Minister Stephen Harper responded to several rounds of criticism from Turmel, NDP MP Charlie Angus, whose riding includes Attawapiskat, and Liberal interim leader Bob Rae.

Each time he reiterated the fact the government has spent more than $90 million in the community since 2006, and the results have been unacceptable

"The results are not satisfactory Mr. Speaker, that's why the government has people on the ground taking additional emergency action and why we will be announcing additional steps to deal with management problems in this community."

Angus said later Wednesday that the federal government has had a "co-manager in the community every single day, dealing with the books."

"He's appointed by the federal government," Angus told CTV's Power Play. "If they were concerned about the money they would have called him and I think he would have given them a pretty straightforward answer about what they're doing with debt and how they are dealing with their finances."

Angus said with the move, the government essentially "decapitated" the community and has taken away its ability to address its own problems.

"They're sending a message to other First Nations: if you've got problems, keep your mouth shut," Angus said. "And I think that's a really unfortunate position to take at this point."

Angus said while $90 million sounds like a lot of money, but 80 per cent of the community's budget goes to education and another 10 per cent to social services, leaving little left for infrastructure.

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Feds to put Attawapiskat under third-party management | CTV News