Longford County Manager Tim Caffrey has issued a statement in relation to a house he owned that was supposed to be bought by a voluntary housing agency with a grant from the Department of the Environment.
He said he made an immediate declaration of his interest to executives in his own county council as the owner of the house.
The social housing agency Muiriosa told RTÉ News it was given an independent property valuation that the house was worth just over €110,000.
The Department of the Environment approved a grant of €250,000 to buy the property.
In the statement issued to RTÉ News, Mr Caffrey said he is satisfied that the process was at all times transparent.
He said it complied not only with the letter of the regulations, but with the spirit of the regulations.
In a separate development, a Longford auctioneer who was selling the house on Mr Caffrey’s behalf said the county manager had contacted him last July to raise the asking price from €239,000 to €259,000, as was his prerogative.
Auctioneer Sean Dalton said the property had not been sold and was still for sale at €259,000.
Minister for the Environment Phil Hogan said there are robust legislative provisions in place under the Local Government Act and the Ethics in Public Office act of 1995, which together with the statutory code of conduct for local authority employees, set out the requirements in relation to declarable interests.
This included a declaration of an interest in writing to the Cathaoirleach of the local authority.
Mr Hogan said he would not make any further comment on this issue in order not to prejudice the formal consideration of the matter by the elected members.
Longford County Council has referred the proposed acquisition of the house to the Standards in Public Office Commission and the local government auditor.
The council said Mr Caffrey gave a detailed and chronological account of the proposed acquisition of the house at Clondra, Co Longford to a council meeting yesterday evening.
The council said that "in the interest of transparency, the members of the County Council present have referred the matter to the Standards in Public Office Commission and the Local Government Auditor".