Independent Ireland councillor for Edenderry Fergus McDonnell says they did not get involved for fear of embarrassing their party Ministers.
Government party councillors are denying they avoided involvement in a financial dispute between the HSE and the Offaly Hospice.
It's after Independent Ireland councillor for Edenderry Fergus McDonnell claim they did nothing to support the group.
Members of the Offaly Hospice Committee claimed the Health Service promised to repay €312,000 spent developing a proposal for a facility on the grounds of Tullamore Hospital, before a new site for the Midlands Hospice on the Arden Lane in the town was selected.
Last month, HSE senior management told councillors they would hold another meeting with the group, despite previously saying it was under "no obligation" to pay back monies owned.
Councillor McDonnell claims government party councillors in the county were asked to intervene in a financial dispute but didn't because for fear of embarrassing their Ministers.
However, Fine Gael's Neil Feighery says while Councillor McDonnell raised it at a council meeting, he was not contacted directly by him to intervene.
Meanwhile, Fianna Fail's Claire Murray Smale says she has been raising the issue at the HSE Midlands Health Forum, and has been informed of correspondence between the Hospice Group and the health body.
She says the claims of 'nothing happening are not correct' and she's doing all that she can as a Councillor.
While party colleague Shane Murray says all his party colleagues in the chamber backed a letter being set to the HSE twice to solve the issue.
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