A plan to write off a £2m loan to a sports arena saw some councillors walk out of a debate in Lincolnshire.
Opposition members on Boston Borough Council refused to take part in the vote to abandon the cash and walked out of the meeting on Monday night.
The ruling group said there was no chance of getting the money from Boston Sports Initiative charity, which runs the Princess Royal Sports Arena.
No-one from either the charity or arena was available for comment.
The leader of the Conservative group on the council, Raymond Singleton-McGuire, led the walkout.
He said: "If you compare Boston Borough Council with a business, the Boston Sports Initiative (BSI) has been set up as a separate entity at arm's length to Boston Borough Council to run the Princess Royal Sports Arena.
"I feel, in that case, the directors should be held to task and give reasons why we have been asked to write off nearly two million pounds' worth of money."
Richard Dungworth, from the ruling Boston Bypass Independent councillors, defended the BSI and said it was a difficult situation.
He said: "All they've (BSI) done is try to manage a very difficult situation.
"I think if you look, most of the trustees are not the ones who were there at the beginning and, like this administration they've inherited the problem, they've done the best they can for the people of Boston to minimise costs and make sure the operation works."