A Norfolk council paid an artist £16,000 for a mural project only later to decide to scrap the £35,000 project after critics called it a "waste of money".
Breckland Council's plans to create three pieces of artwork in Dereham first emerged two years ago.
However, amid a cost of living crisis that left many people struggling, the 'Memoirs through Murals' scheme proved controversial.
It led to councillors calling for the art project to be stalled or cancelled so the funding could be used to help support local people facing soaring bills, especially for energy.
And 14 months later, the council decided to scrap it altogether.
A group called Things Made Public, which works with local councils to create public art, was consulted for the project.
Roger Atterwill, leader of the Independent group, branded it a "waste of money" and he came under fire for sharing concept images of the artwork publically while it was still at an early stage.
At a full council meeting this week, he brought up the issue again.
He grilled Paul Claussen, cabinet member for economic development and growth, citing rumours the artist was still paid nearly half the sum of the overall project.
"Bowing to public pressure, the project was justifiably scrapped but since then rumours have been flying around. Can you confirm the artist has still been paid somewhere in the region of £16,000 despite the work not being carried out?"
In response, Mr Claussen said: "This was part of the market town initiative. The executive decision on how the money was spent was decided by the town council.
"I have never claimed to be an art critic. There was a contract with the artist which has been paid for the works carried out to that date.
"I know you certainly did not like what was proposed.
"My understanding is that figure is accurate."
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