Lancashire County Council’s chief executive Phil Halsall has stood down from his position at the authority.
Mr Halsall was suspended from his £195,000-a-year post in August and a disciplinary investigation was launched following allegations BT was shown favouritism when bidding for a £5m contract to run County Hall’s fleet maintenance services.
Yesterday the county council confirmed his employment had been “terminated by mutual consent”.
Mr Halsall said: “The decision to leave has not been an easy one. I want to take the opportunity to say how much I have enjoyed my time in Lancashire.”
Leader of Lancashire County Council, County Coun Jennifer Mein, said: “I would like to take this opportunity to wish Mr Halsall the best of luck for the future.”
Mr Halsall joined the county council in 2009 as executive director of resources and took up the role of chief executive in 2011.
He had previously worked as finance director for Liverpool City Council.
The contentious decision for BT to run the council’s fleet maintenance and repair services was agreed by the authority’s former Conservative administration in April.
The council’s Urgency Committee made the decision to suspend him following an independent review of the tender process for the contract to manage and maintain the county council’s fleet services, which includes the council’s fleet of vans and trucks.
Jo Turton, the council’s executive director for environment, is currently acting as interim chief executive until discussions commence about a permanent replacement.