01/06/2012 12:35 EST | Updated 03/07/2012 05:12 EST

Attawapiskat still at odds with third-party manager

The war of words between the Attawapiskat First Nation and the federal government continues.

The band is still refusing to work with a third-party manager put in place by Aboriginal Affairs.

The government made the move after the First Nation declared a state of emergency over a severe housing shortage more than two months ago.

In a statement released Thursday, the Attawapiskat First Nation said it fears that, under third-party management, the teachers' payroll and other payments won't be made — compromising services on the reserve.

The band said Aboriginal Affairs has transferred $1.5 million of its funding to accounting firm BDO Dunwoody.

The First Nation said the government is ignoring the community’s right to autonomy and self-determination.

In response, Aboriginal Affairs released its own statement.

It said it recently sent a letter to Chief Theresa Spence indicating that the third-party manager is ready to issue payroll cheques as soon as the band provides the necessary information.

Neither the First Nation nor Aboriginal Affairs made anyone available for interviews.

The First Nation said it has applied for an injunction to block third-party management.

The matter is still before the courts.