POLICE are to take no action against a council official following an investigation into allegations that thousands of pounds had gone missing from a trust fund.

Terry Robson, clerk of Spennymoor Town Council, in County Durham, was questioned by fraud squad detectives.

The investigation was launched last year after Mr Robson disappeared.

The 56-year-old vanished from his home in Kirk Merrington, in June, and was found in Edinburgh two months later.

It transpired that Mr Robson had abandoned his car at Alnmouth, Northumberland, and walked to Edinburgh via a cycle route, sleeping rough on the way.

Police were initially unable to question the father-of-two because of his state of mind.

The investigation had centred on two trust funds set up for a brother and sister in which Mr Robson, a solicitor, invested £20,000 in 1988.

The girl received her money in instalments several years ago but when her brother started to make inquiries about the fund, another solicitor in the town reported that a large sum was unaccounted for.

But last night police said their investigations were at an end.

A spokesman for Durham Constabulary said: "Following lengthy inquiries, an advice file was sent to the Crown Prosecution Service for its consideration. Last week, the CPS recommended no further action."

Mr Robson, who last night declined to comment, is on sick leave from Spennymoor Town Council.

The council has now appointed a full-time temporary clerk, Pauline Wilson, who is solicitor and monitoring officer for Chester-le-Street District Council.

Councillor John Marr, who became town council leader in May, said the authority was a year behind.

But he added: "We've got a new team in and a new leader and now we're going forward and making progress."