A Stormont minister is to consider giving local authorities new powers to stop councillors paying their wages directly into party bank accounts.
Environment minister Mark H Durkan says he will discuss with council chief executives whether new laws are needed on councillor allowances and expenses.
It follows controversy over payments to some Sinn Féin members of Derry's council being made straight into a party account.
The Audit Office launched a probe after The Irish News revealed in September that nine Sinn Féin councillors had wages totalling more than £140,000 paid into the same bank account.
The payments included a carer's allowance being claimed by one councillor.
Sinn Féin initially defended the arrangement amid criticism, but recently the councillors have changed to use individual accounts.
Responding to a written assembly question, Mr Durkan said legislation is "silent" on which accounts councillors' allowances must be paid into.
He told MLAs that unlike Stormont, councils do not have investigative powers to make enquires on what bank accounts are used.
But he added: "This is a subject that I will discuss with council chief executives to ascertain if such a legislative power is necessary and would be of benefit."
When asked what powers could be considered, the minister last night said: "I will be discussing with chief executives to ascertain what powers, if any, are required to give full effect to the legislative provision. Primary legislation is clear in that it allows councils to make payment of an allowance to a councillor for carrying out their duties."
The controversy emerged following a court case in July involving Sinn Féin Derry councillor Colin Kelly.
He faced benefit fraud charges after claiming £19,000 in jobseeker's allowance despite receiving a councillor wage.
But a judge acquitted him after the court heard how his council allowance was paid straight to Sinn Féin.
