Council chiefs have ruled out an investigation following a flood of complaints about work at Brighton's Open Market.
Traders complained earlier this year that a £125,000 canopy let in sun and rain.
They said the roof was too tall, in the wrong place and the market was left in a dangerous state while work was proceeding.
Opposition Tory leader Geoffrey Theobald was furious and asked for a scrutiny investigation into what went wrong.
But Brighton and Hove Council chief executive Glynn Jones said items could only be scrutinised if the council's decision-making process was not being followed, if policy was not being achieved effectively or if there was concern about a service's performance.
He said problems over the Open Market canopy were largely management issues.
Mr Jones said: "I am satisfied it was the contractors, who were properly briefed, and not officers of the council who were at fault.
"I know council officers are currently in discussion with the contractors so matters can be put right at their expense.
Coun Theobald has also been refused a scrutiny probe into the financial collapse of the Brighton and Hove Racial Equality Service.
Mr Jones said: "Although it is partly granted aided by the council it is not a local authority service."
He has encouraged details of a report into the service, owned by the liquidator, to be made public once people named it in had been seen by the liquidator.
Coun Theobald said "I really do not understand why these two items could not have been scrutinised.
"I am flabbergasted. They are not even going to go before the scrutiny management committee.
"It shows what a sham the scrutiny system all is. This is a cover up in both cases."
House Of Commons hopeful David Gold said he was appalled at the state of the Open Market when he toured it with traders.
Mr Gold, who will be bidding for the Pavilion seat at the next election, said the ill-fitting canopy allowed flies, dirt and rubbish to fall in.
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