A police investigation into a community group at the centre of a funding row has found no criminality.
Members of the now defunct Ellon Community Council were under investigation amid claims of impropriety in relation to the purchase of Christmas lights for the town.
The group resigned en masse last year placing the town’s annual festive celebrations under threat.
Aberdeenshire Council subsequently began an investigation into the group before a formal police inquiry.
However the force has now confirmed there will be no charges brought against its members.
But last night one former senior community councillor claimed they were the victim of a smear campaign.
More than £3,000 has now been returned to the council by the lights company, which will be held for a future community council.
Ritchie Johnson, Aberdeenshire Council’s director of business services, said: “It is important for our communities to have local representation, and the council has a role to support the resolution of concerns or challenges community councils may face.
“It was right that the Ellon Christmas lights matter was properly investigated and we are pleased to have secured a refund of more than £3,000 from the lighting supplier.
“This money will be held by the council and will be returned to the new iteration of the community council once it is re-established. Nominations will open shortly and an election held if required.”
The group’s resignation sparked a row with Aberdeenshire Council after the community council claimed they had been told by the local authority the body had “insufficient numbers” to continue operating.
But the authority rejected the claims and said it had been kept in the dark about the group’s dwindling numbers prior to the resignation.
The celebrations ultimately went ahead, with Ellon Events – which runs the Gig at the Brig every New Year – taking over the management of the event.
Following the closure of the investigation, former chairman Peter Mackie branded it a waste of time and money.
He said: “The investigation was an absolute nonsense and should never have happened in the first place.
“It was a waste of money and a waste of time – it was nothing more than a smear on the community council.”
Efforts to establish a replacement group are well under way, with the authority looking to open nominations soon.