"I am relieved that after 18 months I can finally put this anxiety behind me," said Coun. Whipp.

The decision was taken after a three-hour hearing at Nelson Town Hall.

Coun. Whipp had always denied the accusations and a report by external investigator Mike Dudfield backed that stance.

Mr Dudfield was quizzed about issues in the report from panel chairman David Sanderson and trade union representative Keith Hutson. He argued it was more of a clash of strong personalities than a breach of conduct.

"On the one hand you have a politically motivated councillor who was responsible for helping to bring the town council into being and on the other hand a principled government officer who is experienced in local government matters and intent on introducing efficient procedures," said Mr Dudfield.

"For that mix to work there has to be understanding about each role and where these overlap, but its clear in my findings that such an understanding was never formed and it was not long before conflict arose."

Mr Kandt had implied Coun. Whipp had set him up to fail at council meetings by withholding budget information.

But Mr Dudfield said it was more a case of the Liberal Democrats trying to highlight the inexperience of Independent councillors who were in control of the administration at that time, something that went on in councils nationwide.

Mr Hutson expressed his surprise Mr Dudfield had not interviewed the external officer who took part in a "mediation" meeting set up to try to resolve the situation between the pair.

After private discussion, the panel said it agreed with the majority of the findings listed in the report. Members then went out again to consider that information and the interviews which had taken place during the meeting.

Their deliberation lasted almost an hour, with Mr Sanderson then announcing that, while there were some aspects of evidence that had caused concern, the panel accepted there had been no breach of the code of conduct rules