Louth County Council has insisted that all proper procedures were followed after it emerged two properties owned by officials in the housing office were bought by the local authority.
A local newspaper, the Dundalk Democrat, alleged that one official even represented the council when it was purchasing a property belonging to him for social housing.
The council confirmed that it had bought two houses from staff in 2010.
In all, the local authority said it had purchased 18 houses that year for social housing.
"At all times, proper processes and procedures were followed," the council said in a statement.
The local authority also maintained that Data Protection Acts prevented them from identifying those from whom it had bought houses.