Sinn Féin spokesman on Finance Pearse Doherty has said it's "regrettable" that his party colleagues chose to put forward the name of Paddy Holohan for mayor of South Dublin.
Speaking on Newstalk Breakfast earlier, the Donegal TD says the party's leadership knew nothing about the nomination.
"We wouldn't be aware at a national and executive level about what Kerry councillors or Cork councillors or indeed Donegal councillors would be doing in relation to putting forward nominations for mayors, particularly when the numbers aren't there," he said.
"We were taken aback when the news broke because that's where we heard of it first, which was on social media as opposed to any information being given to the party at a senior level."
Holohan was suspended from the party after remarks he made on his podcast about former Taoiseach Leo Varadkar emerged during the general election campaign earlier this year.
It's emerged his suspension over the remarks was set to run for a period of five months -- a suspension that has now lapsed.
"His membership is back with Sinn Féin. That doesn't, in my view, put him in a position where he should have been put forward... and I think that's a regrettable decision that was taken by the councillors."
Deputy Doherty said there would be no sanction for other Sinn Féin councillors who backed him.
"This is an issue in terms of judgment. If I was aware of it myself I would have said it wasn't an appropriate position to be taken," he added.
In January, Holohan said Leo Varadkar was "separated from society" because of his Indian father, suggesting that was the reason for the Taoiseach's stance on the controversial move to commemorate members of the RIC who died during the War of Independence.
Holohan also claimed underage girls were having sex with men in order to blackmail them.
At the time, Sinn Féin president Mary Lou McDonald called Holohan's comments "beyond offensive" and ordered a disciplinary inquiry.
Holohan himself issued a statement in the wake of the row saying he was sorry for any offence caused.
"My comments have been misinterpreted and [were] not in any way meant the way they have been portrayed," he said.