A Mandalorian mercenary sunk the city, but prior to that a Jedi master summoned a typhoon inside it.
Neither acts have been condemned by the council (said Jedi master already summoned natural disasters on Metalorn and was sent to the Pit, but pardoned by the new regime). There's been a council meeting where some masters voiced concern, but they're in the minority and in any case that meeting dealt more with general militarism and the Jedi becoming, in the eyes of those who voiced the concerns, too much like soldiers. Icly the Republic has given no response at all to what occured on Manaan (but thanks to Moira and MSE-007 it all got recorded and loaded onto Galaxytube).
In this Jedi order Siobhan Kerrigan would be a council member...and not even the nuttiest. Considering her level of mental instability and brutal approach to most problems this says something.