Whangarei mayor Sheryl Mai says she's found no evidence to support allegations by a staff member about the council's chief executive, Mark Simpson.
Ms Mai has been investigating claims made by Ford Watson, after Mr Simpson sacked his personal assistant, Jan Walters.
Mrs Walters was dismissed for nominating a former mayor, Stan Semenoff, in the local elections last October, while Mr Watson was allowed by the chief executive to work on the mayoral campaign of the council's finance chair.
Mr Watson subsequently made allegations of unauthorised spending by the council but Ms Mai says she has found nothing to support the claims.
She says the Audit Office has also drawn a blank, and has declined to investigate because the complainant could provide no dates or details on which it could base an inquiry.
Mr Watson has now resigned from the council and Mrs Walters is taking the council to the Employment Court.
