Cr Benedict Ong alleged Cr John Chambers had made "discriminatory remarks" against the South Asian community. The complaint was thrown out yesterday.
"There is insufficient basis to warrant further investigation, and so I dismiss the complaint," independent investigator Steph Dyhrberg said.
"Although Cr Ong was offended by what he thought Cr Chambers said, the evidence indicates Cr Chambers’ remark was misinterpreted," her report said.
She also observed Cr Ong was "resistant to participating openly in the complaint process, despite it being his own complaint".
Asked by the Otago Daily Times if he would apologise to Cr Chambers, Cr Ong said "I believe it is time for Cr Chambers to apologise".
Cr Chambers said the past few weeks had been stressful for him and his family.
Repeatedly seeing his name in the newspaper and online over alleged discrimination was a serious matter, he said.
"I am grateful that the Dunedin City Council has followed due process and reassured that the external expert appraisal has dismissed the complaint, which was without substance."
His account was essentially corroborated by a witness and Ms Dyhrberg said it was highly unlikely Cr Chambers intended any discriminatory meaning.
The ODT asked Cr Ong how he would respond to people who might say he had wasted everyone’s time, as well as ratepayers’ money.
He did not consider the independent investigator to be independent, he said.
Ms Dyhrberg said the incident was more likely to have occurred as Cr Chambers recalled it.
"I consider it more likely Cr Ong has interpreted the events, including his own observations, and reflected what he has made of the matter in his complaint," she said.
"That is supported by his reluctance to focus on what Cr Chambers actually said, and instead to talk about the implications and his thoughts about what he believed had been said."
The Otago Daily Times also received from the council yesterday an explanation chief executive Sandy Graham sent to Cr Ong about why two notices of motion from him had not been accepted at this stage.
They were matters for the 2027-37 long-term plan, she said.
One of the notices was related to visitor charging for entry to cultural institutions.
The other was about "innovative debt financing" and it cut across a range of existing arrangements that were being considered or prepared for the 10-year plan process, Ms Graham said.
Work was also well under way on an investment plan and this would deal with many of the matters covered in Cr Ong’s notice, she said.
