The Solomon Islands supervising Home Affairs Minister says the Honiara City Council was dissolved due to misappropriated funds.
A new administration of eleven people has been appointed by the minister to run the council's affairs.
Nathaniel Waena says the council was dissolved last Thursday.
"It revolves around the mismanagement of finance and obviously any organisation can't function without financial means, and the situation has been carefully observed to the point the minister has satisfied himself that there is very serious misappropriation of finances warranting the removal of councillors so as to give opportunity for a new administration."
Mr Waena says the sale of council of lands also contributed to an undisclosed amount of funds being misappropriated.
He says its not the first time the Honiara City Council have suffered from financial mismanagement.