Band councillors in the northern Ontario reserve of Attawapiskat have asked a third-party manager appointed by the federal government to leave the community.

CTV's Daniele Hamamdjian confirmed Monday evening that the consultant "is no longer on the ground."

Grand Chief Stan Louttit said he, Chief Theresa Spence and the reserve's council were all in agreement that the manager had to leave because they viewed his presence as an attempt by the federal government to muzzle the community's leaders.

Despite the move, federal officials say the manager, identified as Jacques Marion, still controls the reserve's money and will continue to, even if he is not on site. Marion was reportedly asked to leave as soon as he arrived in the community.

"He remains in full control of funding from Aboriginal Affairs to the community and is hoping to work with the community to address urgent needs," Michelle Yao, a spokesperson for Aboriginal Affairs Minister John Duncan, told The Canadian Press in an email.

In a later statement, Duncan's office said that the latest development was worrying since it appears that band leadership isn't interested in outside help.

Earlier Monday, Spence and Louttit met with Duncan in Ottawa to discuss the plight of residents on the reserve, which is near James Bay. They are in the nation's capital for the Assembly of First Nations' annual meetings.

Spence told Duncan the community planned to fight his decision to put a third-party manager in charge of the band's finances.

"I told him I don't want to see a third-party on my reserve," said Spence. "He is not coming to the community. He did this morning, we sent him out of there."

Spence added that it would take six months for Marion to get a grasp on the community's financial situation.

Spence had declared a state of emergency at the end of October over inadequate housing on the reserve, where many homes are uninhabitable due to mold and severe infrastructure problems. Several dozen families are living in makeshift housing, including wood sheds and tents, with temperatures dropping.

The Canadian Red Cross has sent a disaster relief team to the community to distribute generators, heaters, blankets, clothing and other emergency supplies.

Last week, the federal government announced that it was placing Attawapiskat under third-party management in an attempt to get to the bottom of what happened to about $90 million in funding that had been distributed to the community since 2006.

The government also said it would address urgent health and safety issues, and advanced $500,000 to the community for immediate housing repairs.

In question period in the House of Commons on Monday, Duncan said he urged Spence and the band councillors to work with the consultant.