Dunedin City Council has reached agreement with the widow of a man who operated a vehicle scam while working for the council.
A coroner found the council's former Citifleet manager, Brent Bachop, committed suicide due to the pressure of fraud allegations.
An investigation suggested he had pocketed $1.5 million over a decade from selling off council-owned vehicles.
The Deloitte report, released in December 2014, alleged that Mr Bachop transferred vehicles into his name and sold them on, including some to fellow staff and councillors.
After his death, the council went to court to get $1.25m back from his widow, Maria Smith, who was the sole beneficiary of his estate.
In a statement, the council's group chief financial officer, Grant McKenzie, said a confidential settlement had been reached at a meeting of representatives from the council and Mr Bachop's estate.
He said the matter had been resolved and would not comment further.