Central Otago Mayor Tamah Alley said yesterday morning she had met with Dave McKenzie earlier in the week.
"I have asked him whether he thought that these accusations would make his stay untenable and he did not agree and had suggested to me that he will be remaining in the seat."
His resignation would spark a by-election once the vote became official on Friday, Mrs Alley confirmed yesterday.
On Saturday, Mr McKenzie won a seat at the council table.
On Sunday, he was accused on social media of financial misconduct during his time as a council contractor.
The post — by Rachel Kerr, widow of former council property and facilities manager Mike Kerr — alleged Mr McKenzie altered contractors’ invoices for personal gain.
It drew hundreds of reactions and calls for him to stand down.
On Monday, Mr McKenzie said he would not stand down and the posts misrepresented a 2018 dispute with the council and stemmed from "a vengefully [sic] response to a fractured friendship" rather than any reflection on his professional performance.
He acknowledged making mistakes and said he had repaid the council $1000 at the time, but maintained fault lay on both sides.
In an about-turn yesterday afternoon, Mr McKenzie issued a statement that said he stood by every decision or action he had taken in his life and the accountability that went along with that.
However, the effect of the online attacks he and his family had endured was too high a price to pay.
"The online destructive misinformation and hatred has become a too higher [sic] price to pay, for my children, my wife and my physical and mental wellbeing. I am disappointed, I am forced to put our wellbeing ahead of the communities need.
"Therefore, I resign/withdraw from the council election with immediate effect."
Mrs Alley said she received an email from Mr McKenzie advising of his decision to withdraw from the election process yesterday.
"If Mr McKenzie is confirmed as a councillor in the official results, his resignation will take effect immediately. ... This will trigger a by-election for the Vincent ward, expected to be held in the next few months.
"While this will incur additional costs for ratepayers, I believe it is the best outcome to ensure our community’s full confidence in the integrity of their council."
However, none of the councillors had signed it yet as they had not been sworn in and it was not retrospective.
"It will apply from the day that it is signed."
The controversy was not the ideal way to begin the triennium, she said.
While she had heard rumours about Mr McKenzie’s conduct when working for the council, neither the mayor nor the council could suggest who electors should or should not vote for.
It was the role of voters to do their homework, Mrs Alley said.
It was really challenging for people to have the information provided after the fact.
"Would it have been helpful if this information had been public prior to people making [decisions and] putting in their votes? Yes, probably would have been."
She would not let the controversy undermine the future council’s work.
"We will be undertaking everything in a transparent and clear manner."
A long-standing advocate for civics education, Mrs Alley said it showed putting your hand up to represent your community in a governance role was a really serious undertaking.
The last by-election held in Central Otago was for the Cromwell Community Board in 2023.
