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Mr McCready, a retired Wellington accountant and serial litigant, had sought to prosecute Mr Brown on charges of corruption and bribery.
To do that, he needed the approval of the Attorney-General, who referred the request to Solicitor-General Michael Heron, QC.
In a letter to Mr McCready today, Mr Heron said he had taken into account written submissions from Mr McCready and submissions from Mr Brown's lawyer Philip Skelton, QC.
He said it was appropriate to allow Mr Brown to make submissions on whether the test for prosecution was met because Mr Brown had been allowed no opportunity to comment, as he normally would under a public prosecution, and the Serious Fraud Office had also determined that the matter did not require further investigation or prosecution.
Mr McCready had charged that between November 2010 and November last year, Mr Brown accepted for himself and his wife Shan Inglis three complimentary hotel rooms and five free room upgrades from SkyCity and SkyCity Grand Hotels.
The gifts, worth about $4600 by Mr McCready's calculations, led to ``favourable consideration'' given by Mr Brown towards SkyCity and parent company SkyCity Casinos, his charging documents said.