Wellington City Council's chief executive won't pursue a code of conduct investigation into Councillor Ray Chung, despite 10 complaints against him.
Chung sent an email, seen by RNZ, to three fellow councillors in early 2023 recounting a third-hand story he was told by his neighbour about the neighbour's son allegedly having a sexual encounter with the mayor.
Mayor Tory Whanau rejected the contents of the email, calling it "false and malicious".
Council chief executive Matt Prosser said in a statement on Friday he was required to consider complaints under the council's code of conduct, and after speaking to Whanau and Chung, decided to draw the matter to a close.
"I have spoken to councillor Chung, who has told me that he understands that the email constituted a lapse of personal judgement and failed to show respect for others in his role as councillor.
"As a result, councillor Chung has issued a personal apology to the mayor to acknowledge this and the harm caused."
Prosser said the mayor had accepted Chung's apology and did not want to see a code of conduct investigation, and to instead focus on working as a cohesive council.
"On that basis I have decided to draw this matter to a close," Prosser said.
"I wish to be clear that, in doing so, I am respecting the wishes of the mayor and that personally I do not condone this behaviour."
He said elected members following October's local body elections would receive training about the importance of good conduct.
Whanau said the estimated cost of an investigation played a part in her decision not to proceed, despite the chief executive receiving numerous complaints against Chung.
"However, due to a projected cost of $80,000, I decided against proceeding with a formal investigation."
She said her priority was to continue working collaboratively with the council and issued a warning about spreading gossip.
"To those actively spreading false and malicious rumours about me: Be warned. I am considering legal action. This behaviour, targeting me and other women leaders, is unacceptable and will be actively called out."
Chung declined to comment.

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