A member of Alresford Town Council has asked Winchester City Council to clarify its links with internet provider, Broadband Wessex.
The company was granted £2,500 by council cabinet members to promote high-speed internet links in Alresford and Winchester.
Broadband Wessex is a non profit-making concern, but its project manager, Rodney Sabine, is the former leader of the city council.
Mr Sabine joined Broadband Wessex after losing his council seat in May.
Now Robin Atkins of Alresford Town Council pressed city members to reveal their links with Mr Sabine before and after he joined Broadband Wessex.
Members agreed to send him a letter to answer his queries.
Some details about Mr Sabine's appointment at Broadband Wessex were available in council papers at the meeting.
A report says the appointment was made by the parent company, Wired Wessex, "and no part was played in this appointment by city council members or officers."
Mr Atkins is unhappy with the council response and is taking the matter further. He is sending his questions to the council's scrutiny panel, chaired by Conservative group leader, Freddie Allgood.
Mr Atkins added: "It's more than likely I'll go to the Standards Board if I'm not happy with the response from the cabinet."
Mr Sabine says he agreed to take no further part in politics after joining Broadband Wessex.
He added: "There is no formal relationship with the council now. Obviously if you work on a council for eight years you make some friends but I have not seen most of the councillors since I lost my seat.
"Wessex Broadband can provide a great service to Alresford. As far as I'm concerned this is a real good news story, and I'd hate it to be ruined by personal vendettas."
Mr Atkins has since told members of Alresford Town Council that the area would benefit financially from a broadband connection.
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