Some of the vending machines at the pool. Photo: RNZ
The council began investigating Steve Prescott three months ago after it emerged he had denied any relationship to the snack machines in the foyer of Dunedin's Moana Pool in Official Information Act responses to several news organisations.
It has since been confirmed the council had approved the deal in which Mr Prescott made $6000-$10,000 a year from stocking the machines.
However, council general manager Tony Avery said a report from the council's independent auditors showed Mr Prescott made mistakes.
"Council did know about Mr Prescott's arrangements and were aware that the contract has been rolled over," Mr Avery said.
"But ... the answers that Steve gave gave a misleading impression."
Mr Avery said Mr Prescott had resigned for health reasons but that he could have faced disciplinary action had he stayed.
