An investigation into a DUP mayor's clothing expenses has been referred to the Public Prosecution Service, Mid and East Antrim Borough Council has said.
It confirmed the development as a reason for refusing to publish its report into "discrepancies" in its public disclosures of the spending by Audrey Wales.
A year ago the council launched an internal probe after it emerged her more than £2,300 clothing bill during her time as mayor had not been made public.
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When asked under Freedom of Information laws in 2019 shortly before an election about the expenditure, the council claimed the former mayor had only spent £190.
Ms Wales said she had sent a cheque at the time reimbursing her council for most of the spending to stop "electorally motivated questions".
The cheque was received by council chief executive Anne Donaghy - but it was never cashed.
Ms Wales sent a second cheque in 2021 after learning the first had not been processed. She has insisted that "at all times" she acted in line with "guidance from council officials".
Last January the council commissioned Belfast-based firm ASM to examine the controversy.
The report was completed in April but the council has refused to publish it, citing an FOI exemption claiming it could prejudice "law enforcement" investigations.
The controversy is understood to have become part of a wider PSNI investigation into the council which in 2021 saw its Ballymena headquarters raided by plain-clothes detectives.
In a further FOI response to Belfast Live, the council said the report "was forwarded to the PSNI by MEABC and subsequently to the PPS for further investigation".
It also disclosed an email in which the council's interim chief executive, Valerie Watts, said the matter had been referred to prosecutors.
In a message to a colleague, she wrote: "The internal audit into Cllr Wales investigation is now closed. However, the PSNI investigation file which looked at same has now been forwarded to the Public Prosecution Service."
The PSNI, PPS and DUP were approached for comment.
The council probe came last January after a fresh FOI request revealed Ms Wales had claimed a total of £2,382.90 in clothing expenses when she was mayor in 2016-17.
Her spending included £636.90 on four dresses, a £210 coat and £76.44 on knitwear.
When asked in December about the council's refusal to release its report, the PSNI reissued an earlier statement about its continuing investigation into suspected offences of misconduct in public office and under the Freedom of Information Act.
The council has been embroiled in a series of controversies in recent years.
Ms Donaghy is among four people referred to the Public Prosecution Service as part of the police investigation.
Since December 2021, she has been suspended from her role amid a separate council probe into bullying and harassment allegations.
She strongly denies any wrongdoing and is taking legal action against the council for alleged discrimination.
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