LANCASTER City Council's unlawful behaviour over Blobbygate involved misconduct by senior officers, but they will not be asked to pay any of the £2.5m bill.
The district auditor, Clive Portman, today announced the results of his £500,000, four-year enquiry but found that misconduct by former town clerk, Bill Pearson, and city treasurer, David Corker, was not 'wilful'.
Mr Portman also found no misconduct by current or former councillors. Mr Pearson and Mr Corker were both allowed to retire early by the council.
A full public interest report, in which the auditor says he will criticise both councillors and officers, is due shortly.
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