A CALL to suspend funding of the troubled Burnley and Pendle racial equality council was rejected at a meeting of Pendle's estimates sub-committee.
Labour's budget spokesman Coun Roger Abbis said fellow party members unsuccessfully moved that Pendle Council's contribution be put on hold.
The freeze would have lasted until the director of the Commission for Racial Equality Councils had certified in writing that the REC was fit to receive public funds.
The REC, funded by Burnley and Pendle Councils, Lancashire County Council and the Commission for RECs, is in the middle of major restructuring.
This follows long-running criticism of its membership policies.
As a result, the councils - which fund the REC to the tune of £120,000 a year - sacked affiliated organisations, took control of the membership and ordered new elections of the executive. After the meeting, Coun Abbis said: "Most people in Pendle will have read about the shenanigans at the local REC.
"It is such a crying shame because the staff of that council carry out much needed and necessary work, but the way the committee has carried on is intolerable.
"We cannot continue to pay £30,000 of public money without certification from the commission."
Other Labour items turned down at the meeting included calls to freeze fees for taxis, charges for caravan storage and luncheon clubs and subscriptions and donations.
But an amendment to freeze councillors' allowances was agreed.
The decisions will go before a special policy meeting tonight.
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