POLICE are still investigating after banners making serious allegations against Councillor Tony Dobson were hung up in Accrington on the day he was installed as Hyndburn's Mayor.
At least three banners were put up hours before the official Mayor-making ceremony earlier this month in highly-visible places including near the Arndale Centre, on the railway viaduct and on a bridge crossing Whalley Road.
The banners accused the Mayor of racism and malpractice and called for him to resign.
At the time, Councillor Dobson called for a full investigation into the matter in a bid to both identify the culprits and clear his name.
This week, police said they had still not caught the people responsible for the banners and Hyndburn Council said it would take no further action over the allegations.
In a statement to the Observer, David Wellsby, managing director of Hyndburn Council, said: "Councillor Dobson has been very open about this issue and he has actively invited a full review of all his registered interests.
"I have not chosen to do this because I have been given no reason to believe that this would be warranted.
"While the council will always investigate a complaint of substance, what we are dealing with here appears to be little more than an anonymous and malicious piece of graffiti.''
Councillor Dobson, 40, a businessman and member of the council's Conservative group, said he felt vindicated by the decision.
He said: "I am obviously pleased that no complaint against me has been brought forward and I agree with Mr Wellsby that the incident was simply a piece of graffiti vandalism.
"I am now looking forward to the rest of my Mayoral year when I will help to spread the goodwill of Hyndburn throughout the borough.
"I have always said that I have nothing to hide."
A police spokesman confirmed that no-one had yet been arrested in connection with the incident and that investigations were still ongoing.