The Whangarei District Council has asked new mayor Sheryl Mai to investigate allegations about chief executive Mark Simpson.
The council on Wednesday rejected a call by councillor Crichton Christie for an independent inquiry into matters raised about Mr Simpson by his assistant Ford Watson.
Instead, Ms Mai has agreed to carry out an inquiry herself into claims made after Mr Simpson sacked a staffer for nominating a mayoral candidate.
Mr Watson raised a number of matters in an affidavit under the Protected Disclosures Act, which allows employees to report serious wrongdoing without fear of punishment.
Mr Simpson left the meeting, saying he had had legal advice that recent publication of the allegations by the Northern Advocate had defamed him and was considering his options.
The council's lawyer, Graeme Matthias, told councillors they could not discuss the allegations because they were defamatory and nor could the mayor pass the affidavit on to anyone, including an independent inquiry.
The Audit Office has said it will not be investigating Mr Watson's claims without further information.
Sacked employee going to court
The sacked council worker is taking the case to court. Jan Walters lost her job after nominating a former mayor, Stan Semenoff, in local body elections in October this year.
Mrs Walker said six hours of mediation with Mr Simpson on Tuesday failed to resolve her grievance.
She said Mr Simpson sacked her for exercising her rights as an elector, while allowing his other assistant to work on the mayoral campaign of the council's finance chair.
In dismissing her, the chief executive quoted election protocols requiring council staff to remain politically neutral. But Mrs Walters said it is a case of double standards.
"I'm still at a great loss as to understand those double standards. I'm happy to move on and have it decided in a court."
Mrs Walters said she would probably bypass the Employment Authority and take her case to the Employment Court.
