Councillor Colin Nineham (pictured) has not been charged but is on bail until November. At a special meeting of Eden District Council Executive on 25 August, he tendered his resignation.
Council deputy leader Councillor Keith Phillips said: Councillor Nineham offered his resignation to the Executive as he wishes to concentrate on addressing the allegations against him and clearing his name. He did not wish the issues he is facing to reflect on the Councils reputation and his resignation will now go before a full council meeting at the earliest opportunity.
Mr Nineham, plus a 40-year-old woman and a 42-year-old man were arrested on suspicion of fraudulent trading and conspiracy to commit fraud in relation to the contract between Eden District Council and Eden Community Recycling. A 39-year-old man was also detained on suspicion of conspiracy to defraud and fraudulent trading. All have been released without charge on bail.
Eden Community Recycling was started in 1981 and is a not-for-profit company. The contract between the council and the business has been suspended and another contractor has been found to take over the contract until the investigation is completed.