Taoiseach Enda Kenny and senior Fine Gael figures were made aware of corruption allegations surrounding the Fred Forsey case as early as 2007, yet failed to act.
Waterford TD John Deasy brought the matter to the attention of his party leader and other colleagues during a meeting which was also attended by current party chairman Charles Flanagan.
In a watershed moment in Irish politics, Forsey, a former Fine Gael Dungarvan councillor, was last week sentenced to six years in prison with the last two years suspended after being found guilty on six counts of corruption .
In a separate complaint, a letter was sent to Fine Gael HQ last week by two Waterford councillors -- Ann Marie Power and Maxine Keoghan -- castigating the inaction of Fine Gael from "the outset of the investigation".
The complaint points to a deep divide within Fine Gael on the matter of response to the allegations.
"The details of this case were disclosed to Fine Gael at every level from the outset. Fine Gael management was given every opportunity to avoid the current turmoil in Waterford County but remains paralysed and unable to satisfactorily advise its elected members. This situation was totally avoidable," the complaint said.
Ms Power yesterday said she is "deeply disappointed" in Mr Kenny's lack of response to the serious matters at the heart of this saga.
"I thought I had a good relationship with him, but he and the top brass have simply brushed this under the carpet, it is appalling," she said.
In a seering critique of Mr Kenny and senior party figures, Ms Power and Ms Keoghan called on the Taoiseach to give strong leadership even if it means making tough decisions.
"Leadership is required and often hard decisions are required as a part of that leadership," the councillors said.
Meanwhile, the Sunday Independent has confirmed that Mr Kenny's attention was brought to the Forsey corruption scandal as far back as 2007, immediately after Forsey's ex-wife Jenny approached local TD John Deasy with the revelations.
Mr Deasy, accompanied by the party's then justice spokesman Charlie Flanagan, met with Mr Kenny in 2007 and he gave them a full appraisal of what he had been told and what he had told gardai.