The auditor responsible for overseeing the expenses regime for TDs and Senators has accused politicians of ignoring his proposals for reform.
Reports this morning say Tom O'Higgins submitted a letter of resignation during the summer because of the refusal of politicians to reform their expenses and allowances.
Mr O'Higgins is chairman of the audit committee of the Houses of the Oireachtas Commission.
In his letter of resignation, he said he felt obliged to stand down because politicians had not accepted concerns he raised about the reimbursement of expenses without an adequate vouching scheme.
He also said the commission had decided to recommend that the Minister for Finance introduce a standardised monthly expenses allowance without first sending the proposal to the audit committee for comment.
The revelation is likely to come as a further embarrassment to politicians following the controversy surrounding expenses claimed by Ceann Comhairle John O'Donoghue.
Yesterday, Finance Minister Brian Lenihan announced his intention to bring in a fully verifiable and vouched system of expenses, but said he had not yet made a final decision on the matter.