Central Hawke's Bay District Council building department team leader Jock Hyde resigned yesterday, effective immediately.
CHB mayor Peter Butler confirmed Mr Hyde's resignation and said he had left to pursue other opportunities.
The announcement followed concerns raised two weeks ago about an email sent to the Ministry of Business Innovation and Employment from the CHB District Council accusing councillor Andrew Watts of selling timber that was not verified to the grade required for a shed extension being built by Waipawa residents Sally Maguire and Helmut Hirler in May last year.
These accusations were proven untrue, and the council was forced to back down and settle with Mr Watts and issue the apology.
A gagging order on councillors meant the nature of the settlement was not revealed.
This week a meeting was called to discuss the matter yesterday, when Mr Hyde's resignation was announced.