A police investigation into the awarding of a historical contract by Cheshire East Council has been dropped due to there being "insufficient evidence to provide a realistic prospect of a criminal conviction".
Cheshire Police launched a criminal investigation into the Council's awarding of contract to Core Fit in 2015, run by the former council leader's physiotherapist Amanda Morris, to deliver fitness classes in schools.
The former Leader of Cheshire East Council Michael Jones announced his resignation at a meeting of the Cheshire East Conservative Group in December 2015, as a result of the controversy caused by the awarding of three contracts to Core Fit with a total value of £156,000.
He maintained that he has done nothing wrong but was resigning as a result of infighting within the Conservative Party.
Lorraine O'Donnell, chief executive of Cheshire East Council, said: "We understand that the Crown Prosecution Service (CPS) has determined that there was insufficient evidence to provide a realistic prospect of conviction, with regard to the investigation into the award of a contract related to a fitness company in 2015.
"We note that the CPS has identified issues in relation to procurement. The council will now review the findings and take all appropriate steps in due course."
Several other criminal investigations are still ongoing including into the purchase of land in Middlewich for the development of the Council's new Environmental Hub and the alleged manipulation of air quality data.
Lorraine O'Donnell added "We also understand that the separate investigation into grant funding for a primary school car park has also concluded, with no further action to be taken.
"Cheshire East Council continues to cooperate fully with the police in other matters referred to the police for investigation."